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    • r_n_carpenter
    • By r_n_carpenter 16th May 18, 1:36 PM
    • 22Posts
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    r_n_carpenter
    Missed Mortage Payments
    • #1
    • 16th May 18, 1:36 PM
    Missed Mortage Payments 16th May 18 at 1:36 PM
    Hi All,

    In December 2017 and January 2018 I 'missed' 2 mortgage payments as I was unemployed.
    I had contacted Santander to ask for a payment holiday and they said these did not exist, but we worked a Payment plan.
    We paid back the arrears within 6 weeks, and my credit score is the highest it has been in ages.
    Today we called them to arrange a new fixed term mortgage and instead of the 1.83% rate we had been quoted by our advisor for 2 years, they quoted 3.75% and used our 'defaulted payments' as the reason.
    This adds 200 extra a month to our payments and all they could say was ' you should be clear in 6-12 months'.
    Could do with some help as I was never told this would happen, and would have found another way of paying my mortgage if this was known! Thanks
Page 1
    • poppy10
    • By poppy10 16th May 18, 1:44 PM
    • 5,939 Posts
    • 7,184 Thanks
    poppy10
    • #2
    • 16th May 18, 1:44 PM
    • #2
    • 16th May 18, 1:44 PM
    Could do with some help as I was never told this would happen, and would have found another way of paying my mortgage if this was known! Thanks
    Originally posted by r_n_carpenter
    What did you think would happen?
    Signature changed by MSE ForumTeam
    • zx81
    • By zx81 16th May 18, 1:46 PM
    • 16,792 Posts
    • 17,804 Thanks
    zx81
    • #3
    • 16th May 18, 1:46 PM
    • #3
    • 16th May 18, 1:46 PM
    We paid back the arrears within 6 weeks, and my credit score is the highest it has been in ages.
    Originally posted by r_n_carpenter
    Unfortunately, that would only be of any use if you were applying for an Experian mortgage.

    Unfortunately, Experian don't do mortgages.

    Lenders will price on risk.
    • ViolaLass
    • By ViolaLass 16th May 18, 2:00 PM
    • 5,353 Posts
    • 7,398 Thanks
    ViolaLass
    • #4
    • 16th May 18, 2:00 PM
    • #4
    • 16th May 18, 2:00 PM
    Your credit history shows that you don't always make payments on time.

    Did you arrange the payment holiday on the phone? Got any paperwork? (They probably told you the conditions on the phone - sure you listened?)
    • minimike2
    • By minimike2 16th May 18, 2:27 PM
    • 1,953 Posts
    • 1,480 Thanks
    minimike2
    • #5
    • 16th May 18, 2:27 PM
    • #5
    • 16th May 18, 2:27 PM
    To clarify, are you just looking for a new product with Santander and not looking to make any other changes to the mortgage? All the arrears are now cleared and payments are now being made on time?
    I am a mortgage industry professional. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice
    • r_n_carpenter
    • By r_n_carpenter 16th May 18, 2:42 PM
    • 22 Posts
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    r_n_carpenter
    • #6
    • 16th May 18, 2:42 PM
    • #6
    • 16th May 18, 2:42 PM
    Hi

    Just looking for a new fixed term mortgage, no other changes - happy to use another lender. Arrears cleared in 6 weeks (they gave us 3 months) and all payments being made on time. Credit score is 600, and no loans, credit card on zero etc
    • r_n_carpenter
    • By r_n_carpenter 16th May 18, 2:44 PM
    • 22 Posts
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    r_n_carpenter
    • #7
    • 16th May 18, 2:44 PM
    • #7
    • 16th May 18, 2:44 PM
    Do you know it is quite stressful when you are in that situation, and clear thinking isn't always easy! Calling the lender and arranging a plan before things got bad seemed like a good thing to do!!!!
    • ViolaLass
    • By ViolaLass 16th May 18, 3:28 PM
    • 5,353 Posts
    • 7,398 Thanks
    ViolaLass
    • #8
    • 16th May 18, 3:28 PM
    • #8
    • 16th May 18, 3:28 PM
    Do you know it is quite stressful when you are in that situation, and clear thinking isn't always easy! Calling the lender and arranging a plan before things got bad seemed like a good thing to do!!!!
    Originally posted by r_n_carpenter
    I agree, I'm sure it was very stressful but that's not the same as "I wasn't told", which is what you claimed in your first post.
    • foxy-stoat
    • By foxy-stoat 16th May 18, 4:51 PM
    • 1,641 Posts
    • 893 Thanks
    foxy-stoat
    • #9
    • 16th May 18, 4:51 PM
    • #9
    • 16th May 18, 4:51 PM
    You need to wait for 6-12 months before applying for a new product with them.
    • r_n_carpenter
    • By r_n_carpenter 16th May 18, 7:38 PM
    • 22 Posts
    • 0 Thanks
    r_n_carpenter
    To clarify, are you just looking for a new product with Santander and not looking to make any other changes to the mortgage? All the arrears are now cleared and payments are now being made on time?
    Originally posted by minimike2
    Whats this?



    Hi

    Just looking for a new fixed term mortgage, no other changes - happy to use another lender. Arrears cleared in 6 weeks (they gave us 3 months) and all payments being made on time. Credit score is 600, and no loans, credit card on zero etc
    • ViolaLass
    • By ViolaLass 16th May 18, 10:18 PM
    • 5,353 Posts
    • 7,398 Thanks
    ViolaLass
    Incidentally, do you use your CC and pay off in full every month? If not, you're missing a chance to improve your credit history (not score).
    • enthusiasticsaver
    • By enthusiasticsaver 17th May 18, 9:40 AM
    • 6,369 Posts
    • 13,018 Thanks
    enthusiasticsaver
    Any payment plan affects your credit history so Santander have obviously calculated there is a risk with you and upped your risk rating and consequently the interest rate they will lend to you. This applies to any borrowing but in most cases people's records are already trashed by the time they get to missing mortgage payments. Did you sign anything when you arranged the payment plan?

    Have you got a mortgage deal expiring? What is the variable rate you will go on to if you don't take up the 3.75%?

    For future reference if you don't have unemployment insurance having an emergency savings fund to cover 3 to 6 months expenses is a must.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • YHM
    • By YHM 17th May 18, 9:44 AM
    • 512 Posts
    • 191 Thanks
    YHM
    They haven't put you on another rate, the Santander Variable rate at present is 3.75%, which is where it sounds like you are sat.

    Dependant on your LTV there may be cheaper alternatives, but this is a job for a good mortgage broker that will understand your specialist lender options, as most high-street lenders won't consider you due to the recent arrears.
    I am a Mortgage Broker.

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice
    • r_n_carpenter
    • By r_n_carpenter 17th May 18, 10:43 AM
    • 22 Posts
    • 0 Thanks
    r_n_carpenter
    They quoted me 4.45% for standard variable! 3.75% was the rate they quoted for 2 years fixed and 3.99% for 5 years fixed.
    When I called to discuss the 'payment holiday' I was told this might affect my credit history. I was NOT told it would increase future mortgage rates and my Mortgage Broker has just confirmed this is a poor practice and Santander are particularly bad at this!
    • Carrot007
    • By Carrot007 17th May 18, 10:57 AM
    • 1,121 Posts
    • 975 Thanks
    Carrot007
    When I called to discuss the 'payment holiday' I was told this might affect my credit history. I was NOT told it would increase future mortgage rates and my Mortgage Broker has just confirmed this is a poor practice and Santander are particularly bad at this!
    Originally posted by r_n_carpenter

    They told you is would affect your credit history? What did you expect this would do? Give you better rates?


    Know a potato when you see one.


    Maybe your broker means Santander are very unforgiving? Some are.


    Get an adverse credit specialist broker if you do not already. They are the best to advise you.
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