Mortgage And Missed Credit Card Payment

[nikaiyo2]

On Wednesday I did a mortgage application (for a BTL not sure if relevant) then yesterday realised I missed a payment to Amex last month, it was not a huge amount £1k ish.

I paid it as soon as I realised and Amex credited the late fee, but the missed payment is showing on credit report

I just forgot all about it, I think I logged in to pay at work and god distracted, thought I had paid... but did not!!!

Is this going to screw up the mortgage?

[Simpo Two]

I don't know, but why not set up a DD so you can't forget? One less thing to have to remember

[bad company]

As said above set up a direct debit.

Might be worth asking Amex if they’d remove the late payment from the record.

[craigjm]

nikaiyo2 said:

Is this going to screw up the mortgage?

It will all depend on the lending criteria of the mortgage company and even if they do take it into account it doesnt mean the decision will be a no it will all depend on the balance of all the factors they take into account.

[WokkaWokka]

bad company said:

As said above set up a direct debit.

Might be worth asking Amex if they’d remove the late payment from the record.

I’ve heard that this is something you can do. Lucky never had to do it but worth asking the question.

Wouldn’t worry about it too much though.

[mcflurry]

If it's a single late payment, then it's unlikely to have a huge impact, unless the application was border line anyway..

[nikaiyo2]

Simpo Two said:

I don't know, but why not set up a DD so you can't forget? One less thing to have to remember

Tbh I do with my credit card, set up to make min payment if nothing else, but this is a charge card and sometimes I need to move money about if the balance is big.

Just had an email from mortgage lady, all is fine... thank god

[Soft Top]

Glad it worked out for you.

Like you the only thing on my credit file is a very annoying “late payment” from Amex. My charge card bill was a whole £73.63 and I paid them £73.36 i.e. transposed the last two digits so underpaid by 27p.

Two weeks later I received a letter to notify me I was late in paying and was being charged £15. I checked my bank and realised the mistake straight away, called them and they had no issues refunding the late payment fee but did say that it would go on my credit file. Fair enough, it was my mistake but 27p - REALLY!!!

That was around 3 years ago now and I have never bothered asking if they will remove the mark and don’t need to apply for a mortgage but it does irk me somewhat, (perhaps more my OCD when I look at check my credit file), albeit the late payment isn’t wrong.

[craigjm]

Soft Top said:

That was around 3 years ago now and I have never bothered asking if they will remove the mark and don’t need to apply for a mortgage but it does irk me somewhat, (perhaps more my OCD when I look at check my credit file), albeit the late payment isn’t wrong.

Late payments or payment defaults stay on your file for 7 years

[craigjm]

nikaiyo2 said:

Just had an email from mortgage lady, all is fine... thank god

Just be mindful that some mortgage lenders make another credit check just before they release the money so make sure you’re whiter than white until the deal is done

[Simpo Two]

craigjm said:

Late payments or payment defaults stay on your file for 7 years

There should be a note of the sum involved so that a value judgement can be made. Otherwise you could lose a house for the sake of 27p which is plain stupid.

[craigjm]

Simpo Two said:

craigjm said:

Late payments or payment defaults stay on your file for 7 years

There should be a note of the sum involved so that a value judgement can be made. Otherwise you could lose a house for the sake of 27p which is plain stupid.

There kind of is and the amount it impacts on your credit score varies on value. The impact also gets less and less as the missed payment ages so in reality after 9 months or so if it’s small and a one off it won’t have an impact on score. May still impact a lending decision though if a companies criteria is for no missed payments for instance

[Killer2005]

mcflurry said:

If it's a single late payment, then it's unlikely to have a huge impact, unless the application was border line anyway..

It would technically outside our current lender policy for my employer. Don't know if other lenders have tightend up though.