I fucked up, didn't I? Mortgage Application

[Ifuckedup2023]

So we're applying for a mortgage at the moment and our appointment will be on April 29th to do the proper application.

I have a very good credit score of 999 on Experian. I made a terrible mistake and I have just noticed now.

A payment of 36 pounds to Virgin Media has bounced back at the end of the month. I've just paid them over the phone.

I just checked my experian account and my credit score is still 999.

I attached a screenshot. My virgin media account shows as in good standing, but the balance shows as 36 pounds.

Will this destroy my mortgage application?

I feel absolutely awful for being so stupid, because I managed my bills responsibly for years and shortly before I destroy everything :(

This reminds me of my husband freaking out because I had £1100 on my credit card when we went in to do the application.

I pointed out that I spent that much on my credit card every month, as the immaculate record of direct debits demonstrated.

They are looking at content, not one off irregularities.

I have credit cards and an existing mortgage. I pay them off every month, so that should be a plus.

I don't quite understand how you can have a perfect credit score with no debt at all?

I had similar, M&S bank messed up my first direct debit payment on a new credit card (it was £54). It's still sitting as a little red dot on my credit file 4.5 years later. I've got to wait until 6 years has passed until it disappears and my credit score won't go above 857 until it's gone. I've had a successful mortgage application since then so I wouldn't worry I think you'll be fine.

My score is only fair (because dh pays all the bills and I just transfer money to him to cover everything and pay council tax).
Also I have no credit card or anything, never had a problem however with 2 mortgages as I pay all my bills and every loan I've taken out I paid back.

They are looking not at the score but at your overall history, so any loans you have not paid out, poor management of finances, iva etc.
One little blip won't affect much.

I stupidly took a loan out in between being offered a mortgage and completing! One of the worst things you can do, didn't realise at the time and wanted the new bathroom funds ready for when we moved in! Luckily, it didn't affect us!

Pretty sure you'll be ok with £36!

I really wouldn't worry. We've just been approved for a sizable mortgage, I've never even checked our credit scores. We have credit cards we regularly use (but do pay off regularly) and have a car loan. And we go in our approved overdrafts most months

Try not to worry, OP. Most lenders don't care about a one off missed payment particularly if it's a phone bill. Missed credit card payments etc are frowned on a bit more but still not a huge deal if not a regular occurrence.

I'm a mortgage broker and deal with this every day - you should be absolutely fine!

This'll be fine. I had a missed payment years ago and I just had to explain it.

I can't imagine it matters. I've been a little late paying my credit card from time to time because I forgot. I've no idea what my credit score is and it has had zero
impact on my ability to borrow. No one has ever asked me about those things, presumably because it was obvious that me forgetting to pay on time was not the same as me being unable to pay.

NO ONE sees your 'score' except for you. Which is why it doesn't matter. The CONTENT is what matters.

I work in banking. You can add a note of correction to your credit file to explain. If the bank made an error you could request a 'letter of comfort' which they send to you to forward to the mortgage provider etc.

Was a default reported? Arrears might not show if it was paid quickly. Call your bank to check.

That shouldn't be a factor. I have no credit cards, loans or debts and got an AIP for £233K.

The three main credit unions are Equifax, Experian and TransUnion. The others just use these.

I know. Which is why I said "then you'll have checked"

I paid it today (almost 3 weeks late)

Payment was due at the end of March, report was updated on April 9th.

It doesn't show as a late payment, it just says that my account is in good standing and lists a balance of 36 pounds

The balance just is what it is, it doesn't mean it is overdue. If it's still green it is fine and even if it does show up it won't impact you getting a mortgage.

The lender doesn’t see your score, it’s your credit history that counts.

Not overly. Your score can be affected by things like which area you live in, is it an area of high debt levels amongst residents etc. Or so I've been told from a reliable financial source Different agencies can also give you completely different scores, as I have experienced myself.

And, lenders don't even see the score.