Perfect credit history… with 1 missed payment

sultanoflondon · 4 August at 4:19PM

For a bit of background, I’m lucky to have a healthy income from secure employment, a handful of credit cards which I’ve always paid on time, a mortgage on the house in which I live that I’ve always paid on time, and a couple of mortgages on BTLs which I’ve also always paid on time. I don’t have any unsecured interest bearing debt, and a reasonably healthy rainy day fund.

Irritatingly, in July, one of my credit card DDs was rejected as my account didn’t have sufficient funds on that specific day. Even more annoyingly, I wasn’t given any kind of notification by the credit card company, not by my bank, and so I wasn’t aware of this for a few days, by which point my credit card company had informed the CRAs. To my horror, I had been charged a late fee, and my Credit Karma app showed a big red mark. Of course, I’ve since cleared the late payment, checked that no other cards are overdue, and even made next month’s payment early on the card that was previously overdue. The card company has kindly reversed the late fee.

I have an upcoming mortgage application towards the end of this year, and really hope that this won’t have a meaningful impact on acceptance likelihood. I will ensure that this problem doesn’t happen again, and wish to ask whether my mortgage chances are scuppered. Thank you in advance team.

gwynlas · 4 August at 7:23PM

No problem is you otherwise have good record, credit scores are virtually meaningless as lenders all have their own criteria re acceptance of risk.

sultanoflondon · 4 August at 7:57PM

https://forums.moneysavingexpert.com/discussion/comment/82092100#Comment_82092100

Thank you. I am a bit concerned about whether this missed payment excludes me from the scope of some/most UK mortgage lenders. Do you have a view on this?

ACG · 4 August at 8:11PM

You will be fine. I imagine there are more than enough positives to overcome the late payment.

sultanoflondon · 4 August at 8:15PM

https://forums.moneysavingexpert.com/discussion/comment/82092186#Comment_82092186

Thank you very much. As a Mortgage Advisor, do you know of any lenders that would reject someone based on one missed payment, as part of their criteria? Or are there none?

Ayr_Rage · 5 August at 1:14AM

It is unlikely to be an issue, however you need to amend your topic title, you don't have a perfect credit history now.

RelievedSheff · 5 August at 7:56AM

1 late payment shouldn't change your chances of getting a mortgage at high street rates on an otherwise clean credit history.

You do not have a perfect credit history now though and won't do until that late payment marker drops off your file in 6 years time.

ACG · 5 August at 9:50AM

https://forums.moneysavingexpert.com/discussion/comment/82092196#Comment_82092196

I dont think any have criteria that would decline you with just one late payment. A lot will say it just forms part of the overall score.

But if you have 60 months worth of payment history and on all of the accounts there is only a status 1 - its fne. Thats not even classed as a missed payment, its just late.