In making a mortgage application, whether you will be able to borrow the amount of money you want to, and at what rate of interest, are among the most common questions people have. However, it is also worth considering how your past credit history - specifically any late payments you may have recorded against you - could impact your mortgage application from the outset.
It’s not uncommon for people to have missed the occasional payment for something or other at some point. Whether it was a genuine oversight in forgetting to pay a bill on time, or you’ve avoided a payment during a time when cash flow has been an issue, missed or late payments can leave an unwelcome mark on your credit file.
Sadly, however common late payments may be, they aren’t something that many lenders are comfortable with and this can often lead to the mortgage applications of otherwise creditworthy applicants being declined. After you’ve had a mortgage declined due to late payment, it can be hard to appeal the decision and boost your overall credit score again. In fact, more often than not, your best approach to a declined application is simply to move one until you find a lender who will give your application the thorough consideration it deserves.
Happily, there are lenders out there who will still give competitive mortgages to people with late payment histories. There are some who will even be happy to offer you a mortgage with late payments on your record at a fairly competitive rate which requires a minimal deposit.
Here, we take a look at how late payments have an impact on mortgage applications. We’ll guide you through the various factors that different lenders may take into consideration regarding your credit history. Your own personal circumstances will have the greatest effect as to whether or not any particular lender is more or less likely to approve your application for a mortgage with late payments on your record. Our experienced brokers are always on hand to offer you advice.
How do late payment impact mortgage applications
Will my credit history work against me?
Understanding your own credit report
The difference between late payments and arrears
The type of account on which you missed the payment
How many late payments you missed and when you missed them
More than one lender
So, if you are looking for a mortgage
Other credit issues can impact your application too
How much deposit do you have?
Getting a mortgage after mortgage arrears
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