Credit check for mortgage application

[michaelowen]

Hi Guys

I plan on approaching some banks for a mortgage application over the coming weeks. In the process of gathering required documents, I decided to also check my credit report, and have found that there is several missed credit card payments in my report from 2012/2013 - the account was closed (fully paid) in 2014 so they will still be on my credit report until June 2019. I have 2 other more recent accounts showing on my report (loan and credit card) without any issues. I cant see my actual credit score (only payment history) as there has been no check on my account on the last 12 months. The mortgage application will be a joint application (partner report is perfect) and we have significant deposit (app. 40%) saved. Just wondering if the missed payments are likely to be a significant factor given their age, and otherwise positive elements to application (deposit, employment, salaries). Will inform broker of the problem also before approaching banks. Any advice appreciated.

 

[lff12]

I am not sure what the exact legal situation is now, but I had this from BOI 10 years ago, made a complaint directly to them, and they corrected the record. I think you are entitled to have your record corrected if it is wrong or misleading - in my case they failed to record that a loan was paid in full 3 months late. If the missed payments were genuinely missed and it was your own fault, however, not so much you can do except to explain if questions arise.

Unfortunately, a certain level of mortgage application decisions are made via particular criteria so it might cause you difficulties. It might be worth explaining this in advance before you submit the application.

The alternative is to wait until 2019 when they disappear completely.

 

[Dave_Curry_IMC]

Hi Guys

I plan on approaching some banks for a mortgage application over the coming weeks. In the process of gathering required documents, I decided to also check my credit report, and have found that there is several missed credit card payments in my report from 2012/2013 - the account was closed (fully paid) in 2014 so they will still be on my credit report until June 2019. I have 2 other more recent accounts showing on my report (loan and credit card) without any issues. I cant see my actual credit score (only payment history) as there has been no check on my account on the last 12 months. The mortgage application will be a joint application (partner report is perfect) and we have significant deposit (app. 40%) saved. Just wondering if the missed payments are likely to be a significant factor given their age, and otherwise positive elements to application (deposit, employment, salaries). Will inform broker of the problem also before approaching banks. Any advice appreciated.

It sounds like it should be ok, given the relatively minor nature of the adverse credit and how long ago it was. However, you should definitely prepare an acceptable explanation for the missed payments. Two of the lenders probably wouldn't even query it (unsecured debt, 4 years old), but you want to have all options open to you.

Best regards,
Dave Curry CFP®
https://www.linkedin.com/in/davecurryirl