Impact of missed payment on mortgage application

jbrassy

I recently signed up for a new broadband contract with Virgin and, stupidly, I forgot to set up a direct debit. Therefore, I didn't pay the first month's bill and I only noticed when the bill for the second month was emailed to me and I thought it was a bit high. 

When I realised my error, I paid off the full balance straight away and set up a direct debit so I won't miss any more payments in the future. However, I'm annoyed with myself and slightly worried because I'm planning on moving house in the next 6 months and I'll obviously need to apply for a new mortgage. 

Up until this point, I've never missed a payment on anything. I pay all my credit cards off in full every month and I pay my bills and mortgage on time every month. I'm now worried that I might have cocked up a future mortgage application over a stupid £20 broadband bill. 

How bad is this likely to look on any mortgage application?

[Deleted User]

It's not great, but not the end of world, given you're months away from your mortgage application.

Presumably you've tried phoning up, apologising profusely and seeing if it could not be reported as late?

jbrassy

[Deleted User] said:

It's not great, but not the end of world, given you're months away from your mortgage application.

Presumably you've tried phoning up, apologising profusely and seeing if it could not be reported as late?

I have not tried ringing them up, but might be worth a go. 

sourcrates

You don`t say what has been recorded on your credit file, if anything ?

jbrassy

sourcrates said:

You don`t say what has been recorded on your credit file, if anything ?

Virgin Media doesn't appear at all on my Credit Karma (Transunion) report.
Clear Score (Equifax) shows all payments up to date, but the last update was on the 10th July, so it might now show yet.
Experian says I have no missed payments.

Overall, no issues at the moment, but I think it will show when Virgin Media send their next update to the credit reference agencies.

jbrassy

Update for anyone that's interested:

I rang Virgin Media and, while they said they could not help me on the phone, they said it could be sorted by emailing their Credit File team. Specifically, they said I can email: creditfileamendments@virginmedia.co.uk 

In the email they said to include my account number and name along with an explanation of why I want my credit file amended. The automated response said they'll investigate and respond within 21 days. 

Just thought I'd post this in case anyone else makes the same mistake or wants to amend their credit file with Virgin Media. 

K_S

jbrassy said:

I recently signed up for a new broadband contract with Virgin and, stupidly, I forgot to set up a direct debit. Therefore, I didn't pay the first month's bill and I only noticed when the bill for the second month was emailed to me and I thought it was a bit high. 

When I realised my error, I paid off the full balance straight away and set up a direct debit so I won't miss any more payments in the future. However, I'm annoyed with myself and slightly worried because I'm planning on moving house in the next 6 months and I'll obviously need to apply for a new mortgage. 

Up until this point, I've never missed a payment on anything. I pay all my credit cards off in full every month and I pay my bills and mortgage on time every month. I'm now worried that I might have cocked up a future mortgage application over a stupid £20 broadband bill. 

How bad is this likely to look on any mortgage application?

@jbrassy One single 6+ months old missed payment on a comms account should not stop you from getting a mortgage.

If you are borrowing at 90 or 95% LTV, it may mean that you fail the lender 'credit-scoring' (nothing to do with your Experian/Equifax/Transunion credit score) at DIP stage for some mainstream lenders but that should not be the case across the board.

jbrassy

K_S said:

jbrassy said:

I recently signed up for a new broadband contract with Virgin and, stupidly, I forgot to set up a direct debit. Therefore, I didn't pay the first month's bill and I only noticed when the bill for the second month was emailed to me and I thought it was a bit high. 

When I realised my error, I paid off the full balance straight away and set up a direct debit so I won't miss any more payments in the future. However, I'm annoyed with myself and slightly worried because I'm planning on moving house in the next 6 months and I'll obviously need to apply for a new mortgage. 

Up until this point, I've never missed a payment on anything. I pay all my credit cards off in full every month and I pay my bills and mortgage on time every month. I'm now worried that I might have cocked up a future mortgage application over a stupid £20 broadband bill. 

How bad is this likely to look on any mortgage application?

@jbrassy One single 6+ months old missed payment on a comms account should not stop you from getting a mortgage.

If you are borrowing at 90 or 95% LTV, it may mean that you fail the lender 'credit-scoring' (nothing to do with your Experian/Equifax/Transunion credit score) at DIP stage for some mainstream lenders but that should not be the case across the board.

Thanks @K_S

Just to say, I was planning on applying for the mortgage in around November time (which is in the next 6 months) and why I'm particularly concerned. This is why I'm hoping I can just get it sorted with Virgin. 

I realise that the scores pumped out by Experian/Equifax/Transunion are pretty meaningless and what matters more are lenders' internal criteria. However, I assume mortgage lenders can see missed payments on broadband accounts. I am planning to borrow at around 90% LTV and I want to ensure I can get the best mortgage possible. This is especially important since I plan to buy my forever home in London which is going to set me back a lot.