Was late paying mortgage a few times should I now overpay

E

Eblana

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Have had some finiancial problems. My mortgage was in advance but ended up using this up and was one month in arrears. Financial position has now improved and I am in a position to now overpay again (double payments). Will this help with getting my credit rating back on track?
 
Eblana said:
Have had some finiancial problems. My mortgage was in advance but ended up using this up and was one month in arrears. Financial position has now improved and I am in a position to now overpay again (double payments). Will this help with getting my credit rating back on track?
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Unless you have been informed by your bank to the contrary, you shouldn't worry about one missed payment. You have a good history and most institutions won't register a non payment with the ICB until at least 2 missed payments and an official warning letter. A payment could bounce for any number of reasons outside your control and a standard practice is to represent a direct debit 14 days after it has been returned to attempt to get the funds once again. They usually do this without even making contact with you. A letter follows if this is not successful but in general you have a little leeway. Though obviously, repeat offenders may find themselves in difficulty.

A.
 
Firstly, have you checked your credit rating with the ICB Eblana?
Secondly I am guessing you have already caught up with your repayments and settled the arrears?
 
I haven't checked with ICB yet. I wanted to get everything sorted out first. I have it all back up to date now. How long does it take to go off your record that you were in arrears? I know my current mortgage provider will always know but will this stop me from getting a mortgage from others in the future if I wanted to move house etc.
 
If the one month arrears is on your ICB report, you can ask to have a comment on it explaining the circumstances.

Given the state of the country, one month is a minor blip. If you're on time with remaining payments, it shouldn't count agaisnt you in future.

markowitzman has a point - if you have extra cash, keep it for yourself. Do you have a rainy day fund of 3-6 months savings? If not, I'd get one together.
 
Thanks for the advice folks, going to open a savings account and put the extra money in there for rainy day
 
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