Unarranged overdraft / missed payment on credit report

hobn_162

Hi, if you’ve ever had an unarranged overdraft or missed payment / account in minus and it’s on your credit report once, will you struggle to ever get a mortgage? 

Will this mean lenders won’t ever give you one? 

TadleyBaggie

Surely it will drop off your credit file after 6 years and then lenders will never know.

hobn_162

Thanks, I believe that is the case. But if I wanted to apply for a mortgage let’s say 1 or 2 years after this happened, would they flag this up and not give me a mortgage for this?

ACG

It wont prevent you getting a mortgage. 
However, with high street lenders they score your application. Everything gets taken into account. If you have a 5% deposit, affordability is tight and you have been in your job for 5 minutes, that might be the bit that tips it into a decline. 

If however you have a 25% deposit, good stable jobs and affordability is ok, then its unlikley to be enough to cause a decline. 

Its not really an exact science, its more a case of finding the right lender for your situation. But I think you will be fine and at normal rates. 

hobn_162

Thanks. I’m just getting myself very worried that by going into an unarranged overdraft on my current account/it’s down as a missed payment or ‘in arrears’ for one month, that I have messed up my chances of getting a mortgage in the near future.
I’ll likely/hopefully want to apply for a mortgage in a year or two (completely depending on the future and circumstances!) I was just getting concerned how much lenders will look at and scrutinise that. 

I’m going to do the usual boosting credit score and keeping spending down and making sure everything is all as good as it can be before you get to the stage of even applying, though! 

ACG

Honestly, dont worry. 
I do a lot of adverse, I would not even class yours as adverse. 

I did one earlier in the year, 20+ defaults, another 8 defaults and a few CCJs. We have seen bankruptcy, IVAs, DMPs... and some of those we get through on the high street. 

Yours could be placed at normal rates with 6 months clear I reckon. 2 years and you will be fine. 

hobn_162

Thank you, I’ll try not to fret too much about it affecting a potential mortgage application in a year or so.