1 missed/arrears payment within a Joint Mortgage Application- Significant?

productof80s

Hi all,

My wife and I have a joint mortgage with 3 dependents. All the figures have been worked out and should be doable around August this year to start the process. 

Just discovered my wife has 1 missed/arrears payment last September (2023)

In respect of a joint application (I have no late payment/arrears) would this affect a joint mortgage application if everything else is good (Which I have checked, feel free to probe....)

I don't believe it will be an issue (with our lender Natwest) as there is nothing else negative. 

We're hoping not, as long as at least 6-9 months has elapsed? 

Just to note we are hoping to 'port' our mortgage, and borrow the small additional for the new place, just for info purposes. 

Thanks in advance.

Regards

productof80s

Hi all- one further point to note, this was for her own bank CC (TSB)

Brie

You have a joint mortgage but she missed a payment??  I think the bank will think that you as a couple have missed it not just her as you are jointly liable.  Unless I've missed something.

If the arrears have been caught up it may not be a problem but make sure your other credit is tidy too.  Maybe cancel a card you no longer need so you look a better bet.

productof80s

Hi,

She Missed the payment on her own CC of which just she is and always has been the sole account holder.

We have a joint mortgage and are financially linked with that as you can imagine.

We are both going to pay of the maximum amount of CC payments we can to help affordability and other than that we should be OK.

A lovely government funded 99% LTV product should give the whole housing industry a massive boost if it happens…. I know that would be good to some house buyers…. But anyway as I say, if we reduce balance and the Wife had the one late payment- fingers crossed we shouldn’t be in a pickle

Please let me know what you think.

Many thanks in advance. 

Emmia

productof80s said:

Hi,

She Missed the payment on her own CC of which just she is and always has been the sole account holder.

We have a joint mortgage and are financially linked with that as you can imagine.

We are both going to pay of the maximum amount of CC payments we can to help affordability and other than that we should be OK.

A lovely government funded 99% LTV product should give the whole housing industry a massive boost if it happens…. I know that would be good to some house buyers…. But anyway as I say, if we reduce balance and the Wife had the one late payment- fingers crossed we shouldn’t be in a pickle

Please let me know what you think.

Many thanks in advance. 

The 99% is really unlikely, banks will price in that additional risk of default in the form of a higher interest rate and it's expensive for the borrower as more of the payments will be swallowed up by interest. Also a smaller deposit means higher monthly payments 

The current 95% apparently only supported around 1% of purchases in the year to September 23.

https://www.telegraph.co.uk/business/2024/02/29/hunt-scraps-99pc-mortgages-backlash-banks/

fatbelly

I doubt one late payment will make a difference but the lesson is to set up a direct debit on the credit cards for the minimum or full payment. Either strategy will stop the negative markers

ACG

Most people have 1 late payment on their credit report at some point. 
I would be amazed if you were declined by any lender, let alone one you have a history with. 

productof80s

Thanks for all your comments.

Looking promising. 

I’ll get the wife to do a DD for the minimum to save her forgetting. 

Appreciate the 99% mortgage comments- true words.

Brie

One late payment on her card several months before an application should be pretty minor.  Easy enough thing to do (I think most of us have done the same at some point!) so best to set up at least a minimum DD to ensure there's no issues.  Reducing the overall credit availability may also help as suggested previously.  Assuming that works for you both.

I've always had minimum DDs on my cards except where I'm able to have a set amount (which wasn't always an option in the past) and am now finally in the lucky situation to have an automated "clear the balance" DD on our daily use card as I no longer have to watch things that tightly.