Credit Rating question

concernedalot

My wife and I are applying for a mortgage.

We have a 8 year record of paying a mortgage (together) and I had 4 years before this. No payments ever late or missed.

We always paid car loans on time and cleared most recent ones early so no debt.

We have no credit card debt.

However my wife has a small credit card (talking 300 here.) She sometimes forgets to run into the bank and make the payment then does so and pays in full.

This seems to be showing up as affecting our credit rating and the bank have raised it. How much of an issue do you think this will be in terms of getting a mortgage and how long if we set up a DD (done) will it appear as normal

concernedalot

Any help with this would be greatly appreciated

chris85

Ok if payments have been missed this will be recorded on the ICB and will remain on record there for 6 years. Any bad record on ICB will have an impact on a mortgage application. You should clear the small balance and show the bank its all cleared. May help.

concernedalot

chris85 wrote: »

Ok if payments have been missed this will be recorded on the ICB and will remain on record there for 6 years. Any bad record on ICB will have an impact on a mortgage application. You should clear the small balance and show the bank its all cleared. May help.

Thanks, that's all been done and the balance has always been cleared but sometimes a bit late. Nothing major, small amounts and admin errors but just nervous it's going to jeopardise everything !

chris85

concernedalot wrote: »

Thanks, that's all been done and the balance has always been cleared but sometimes a bit late. Nothing major, small amounts and admin errors but just nervous it's going to jeopardise everything !

Ok well if the payment is over 30 days late it gets recorded on the ICB, no way to remove this.

killers1

concernedalot wrote: »

My wife and I are applying for a mortgage.

We have a 8 year record of paying a mortgage (together) and I had 4 years before this. No payments ever late or missed.

We always paid car loans on time and cleared most recent ones early so no debt.

We have no credit card debt.

However my wife has a small credit card (talking 300 here.) She sometimes forgets to run into the bank and make the payment then does so and pays in full.

This seems to be showing up as affecting our credit rating and the bank have raised it. How much of an issue do you think this will be in terms of getting a mortgage and how long if we set up a DD (done) will it appear as normal

It will be viewed in the overall context of your application. If you have been paying rent & saving consistently each month the bank will have the cop on to see that this is just an oversight as opposed to a credit risk. While I'm not surprised they raised the issue (as they'll have to note the file with an explanation) you simply tell them that you have been saving consistently all along and that the late/missed payment was simply an oversight on your wifes and that there was sufficient funds in all accounts to clear it in full at any stage. This issue on it's own won't negatively effect your chances of mortgage approval.

concernedalot

killers1 wrote: »

It will be viewed in the overall context of your application. If you have been paying rent & saving consistently each month the bank will have the cop on to see that this is just an oversight as opposed to a credit risk. While I'm not surprised they raised the issue (as they'll have to note the file with an explanation) you simply tell them that you have been saving consistently all along and that the late/missed payment was simply an oversight on your wifes and that there was sufficient funds in all accounts to clear it in full at any stage. This issue on it's own won't negatively effect your chances of mortgage approval.

Thank you . It's on DD now so won't happen again and yes we have been saving and paying mortgage so I would have thought that those oversights would be small beer but who knows