Mortgage due 28th Feb, paid 14th March reported as missed payment

elyouseewhy11

Hi, 

Please offer some advise if this is worth me perusing with ombudsman.

My mortgage payment was due 28th Feb 2024.

Other half forgot to transfer money into account and so payment bounced back. (don't get me started!!) He paid in the same day but it did not re take as we must have missed cut off.

I called lender Saturday 2nd March but offices were shut.

I called lender Monday 4th March and was told it would not affect my credit file and they'll re take it 14 days later.

Lender re took 14 days later on 14th March 2024. 
 
We now both have a missed payments  showing on our credit files. 

I phoned lender and was told due to the payment falling into the next month it weren't down as a missed payment. I advised I was misinformed of this when I called, but they said it didn't matter because I was in the next month by then anyway. They gave me £50 for inconvenience. 

Should lender offer 14 days grace period regardless of where it falls in the month? This means for a portion of any month you could get get a grace period? 

This id the only bad thing on my credit file and never missed a payment before with any credit commitments. Now due to remortgage and wondering if this will come back to bite me again!

Thanks 

CliveOfIndia

To be totally blunt, you missed the payment and it has been correctly reported as such - there are no if's and but's about it.  It's simply an accurate record of the facts.

elyouseewhy11 said:

I called lender Monday 4th March and was told it would not affect my credit file and they'll re take it 14 days later.

This was admittedly an error on the part of the advisor you spoke to - but very often, front-line support staff are not fully conversant with the intricacies of the company's processing procedures.

elyouseewhy11 said:

Should lender offer 14 days grace period regardless of where it falls in the month?

No, they are not required to offer a grace period.  Some lenders may sometimes "overlook" a small error as a gesture of goodwill, but there is no legal requirement for them to do so.

I suspect that your lender submits their CRA returns at the end of the month, which is where the "falls into next month" thing is coming from.  If, for instance, your payment was due on the 15th and you paid it on the 25th, then it probably wouldn't be recorded as missed when they send their data to the CRA on the 30th/31st.  But in this example, when they submitted their return on the 28th Feb, they (correctly) reported that the payment for March hadn't been received.

elyouseewhy11 said:

They gave me £50 for inconvenience.

I'd say that's a pretty decent result for you.

elyouseewhy11 said:

This id the only bad thing on my credit file and never missed a payment before with any credit commitments. Now due to remortgage and wondering if this will come back to bite me again!

Of course a late payment is less than ideal.  But a single incident in an otherwise well-managed credit history will have a negligible impact overall.  And since this was a year ago (or was 2024 a typo?), any small negative impact will be pretty much zero by now - especially if superseded by lots more positive markers.

Hoenir

elyouseewhy11 said:

Should lender offer 14 days grace period regardless of where it falls in the month? This means for a portion of any month you could get get a grace period? 

No, By accepting the mortgage offer you agree to the contractual terms laid out therein.  Lenders aren't interested in my dog ate my homework stories. Whatever the issue was. Ensure that it doesn't happen again. 

elyouseewhy11

thanks both for comments, I expected them answers but felt the need to check anyway.

My credit score on Experian is 999 and this was in Feb 2024. Due to talk to broker tomorrow about remortgage so hopefully all goes well. I was also trying to find the terms which stipulate it must be paid within the month but cant find anything so far. Guess its too late now anyway.

Nasqueron

elyouseewhy11 said:

thanks both for comments, I expected them answers but felt the need to check anyway.

My credit score on Experian is 999 and this was in Feb 2024. Due to talk to broker tomorrow about remortgage so hopefully all goes well. I was also trying to find the terms which stipulate it must be paid within the month but cant find anything so far. Guess its too late now anyway.

Your score is not used by lenders, they don't even see it, they take the data from your file and put it through their own systems. A 999 score can easily be rejected for finance if the lender has a rule that says no missed payments in the last 12 months or something

dumpster_fire2025

elyouseewhy11 said:

thanks both for comments, I expected them answers but felt the need to check anyway.

My credit score on Experian is 999 and this was in Feb 2024. Due to talk to broker tomorrow about remortgage so hopefully all goes well. I was also trying to find the terms which stipulate it must be paid within the month but cant find anything so far. Guess its too late now anyway.

I would assume they will have a term that will state that payment is due on the due date. I'd be very surprised if any lender didn't have such a term. That is what you need to go off, not what the lenders internal processes may or may not be.

mjm3346

It's not just that you were late making a payment, they had tried to collect and the payment was declined