Porting/applying for mortgage with late payment on fileh

klf121293

Hello,

my partner and I are looking to sell our current house and move, just wanted some additional advice before I get my hopes up that moving is a possibility. Spoke to our mortgage advisor who doesn’t seem to think we will have a major issue but can’t help but worry.

Our current mortgage is with nationwide and we owe £161,000 - house is worth £295,000 but we will owe help to buy so leaving us around £74k in equity. Our combined income is around £93k (me 42,000 him 41,000 plus 10,000 of overtime) we wanted to port the 161k and then borrow an additional amount for the new house. House is 340,000 and we can put down a 10-15% deposit as we want to use the remaining equity to clear credit cards and a loan.

issue is our credit files have always been perfect until last month. 

in April I changed jobs so moved our payment date in line with my pay day going from 15th to 28th if the month. At this time we had no plans to move it’s all really come about in the last few weeks, If I’d known we were going to move I’d have left the payment date just to be safe 🤦🏻‍♀️

Anyway, the payment in April went as expected but Mays bounced as our salaries hasn’t cleared in time for the payment to be taken this is all happening within our Nationwide joint account  (salary and mortgage all going on 28th month) when I realised this had happened we were already in June so I made the payment as soon as I noticed making it about 10 days late. This means we didn’t make a payment in May but will make 2 payments in June so won’t be in arrears or anything. Mortgage broker seems to think we will be ok as it’s all happening within Nationwide so they can see we’ve always paid on time until now and can explain the issue we’ve had if the underwriter has any concerns. Apart from this one issue our credit files are fine and we’ve got high scores (understand score mean nothing)

do you think this is going to cause us problems or am I worrying for nothing? 

klf121293

Forgot to add we did get a DIP from nationwide but I’m worrying anyway 

K_S

@klf121293 The impact (if any) depends on whether the missed payment was picked up on the credit reports (doesn't always happen depending on the when the lender reports to the credit bureaus and the timing of the payment). It's probably too soon to show yet, just keep an eye on your reports.

If you're sticking with Nationwide, they can exercise a large degree of discretion so even if the missed payment marker appears on your report you should be able to explain it.

If you're applying with a new mainstream lender and your report shows a recent missed payment on a mortgage account, then you may have a problem getting past the DIP stage.

klf121293

K_S said:

@klf121293 The impact (if any) depends on whether the missed payment was picked up on the credit reports (doesn't always happen depending on the when the lender reports to the credit bureaus and the timing of the payment). It's probably too soon to show yet, just keep an eye on your reports.

If you're sticking with Nationwide, they can exercise a large degree of discretion so even if the missed payment marker appears on your report you should be able to explain it.

If you're applying with a new mainstream lender and your report shows a recent missed payment on a mortgage account, then you may have a problem getting past the DIP stage.

Thanks so much for your response. This is the same as what our broker said regarding nationwide being able to exercise discretion by looking at our case. 

we are hoping to stick with Nationwide since we’d like to port the existing mortgage but just conscious we may need to use another lender if there are any issues. 

I had a little look at some other lenders and it seems in their criteria some allow for it (eg Leeds Building Society states they accept 1 missed payment in 12 months “A maximum of 1 missed mortgage/secured loan payment in the last 12 months.” So hopefully we’d have a chance with some other lenders too? Especially if we can show on our mortgage statement that it wasn’t actually a missed payment just paid 10 days late? 

I’m just a worrier and can’t believe this blip has happened when we’re looking to move. So frustrating when we’ve kept clean credit files for so long.