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Original poster

My stupid mistake

31 replies

mystupidmistake · 25/08/2019 20:13

I’ve made a terrible mistake and my could potentially hugely affect our lives. I’m absolutely devastated.

Transferred a card balance for the 0% offer and whilst clearing up my bank account I cancelled the DD because previously I’ve had them take it after it’s been paid off and ended up with a credit balance.

Didn’t think/realise that there would be a balance the following month due to interest. Never gave it another thought and I’ve not got a late payment notification on my credit report. All for the sake of about £20 odd.

We’re planning to remortgage our house next year and have gone without treats, holidays etc to get us into a better position, live within a budget, overpay our mortgage almost 50% every month and it could all be over because of one silly mistake. I feel so so sad about it. Already on my banking app the bank are saying we couldn’t give you a loan whereas before they were saying around £35k. We’ve lived in an absolute hovel for so long waiting for this remortgage.

I called the company who were happy to refund the charges but the people to speak to about the credit report side of things were closed. Does anyone know if there’s any way this can be fixed? I know it doesn’t matter how upset I am etc and it was completely my fault but not sure if there’s anything they can do when it’s obviously a genuine error and stupid me trying to be organised.

OP posts:
brownjumper · 25/08/2019 20:20

Surely you are overreacting?

neighbourssitu · 25/08/2019 20:27

One late payment won't prevent you getting a mortgage or loan.

cushioncovers · 25/08/2019 20:34

I've done this before I accidentally cancelled the wrong direct debit and missed two cc payments. I had a pile of post that I hadn't opened for weeks so didn't see the warning letters. I phoned them and apologised they refunded the charges and reinstated my 0% deal. Didn't even occur to me that it would affect my credit rating. 🤷🏻‍♀️

Original poster
mystupidmistake · 25/08/2019 20:37

Maybe I am overreacting but we’ve practically put our lives on hold for a better house and now it feels like I’ve ruined it.

I really hope you’re right neighbours, but the fact my bank already changed my loan thing to none doesn’t fill me with confidence. Maybe it just needs a couple of months to recover.

@cushioncovers I suppose if you’re not planning to borrow in the near future you wouldn’t even be thinking about it.

OP posts:
leghairdontcare · 25/08/2019 20:38

If there's no late payment showing on our credit report then that can't be the reason for declining the mortgage.

Also, I don't understand why you've been overpaying the mortgage in order to borrow more money on the mortgage? Why didn't you save the money for the home improvements you want to undertake?

Cabezona · 25/08/2019 20:40

It only stays on your history for six months I believe?

Teddybear45 · 25/08/2019 20:41

I late payment can definitely impact the mortgage application but your lender will usually just ask you for evidence that it’s been repaid.

leghairdontcare · 25/08/2019 20:42

Ok, you're not remortgaging, you are purchasing and you meant now got a late payment. Also, you haven't actually applied for a mortgage?

How much credit card debt do you have? That could be an issue when borrowing, even without a late payment.

No harm in contacting the credit card company and ask if they'll remove the late payment due to the misunderstanding.

SoyDora · 25/08/2019 20:42

Also, I don't understand why you've been overpaying the mortgage in order to borrow more money on the mortgage?

Yes I thought this too.
Wait until you’ve spoken to them before panicking. Similar has happened to us a couple of times and we’ve just spoken to them and they’ve removed it from the credit report. No big deal.

Original poster
mystupidmistake · 25/08/2019 20:45

There is a late payment on the credit report already. I was hopeful my

It just felt easier to overpay. It’s easier to know you have to pay X amount on the mortgage every month than try and put money away then end up dipping into it for things. For us personally anyway.

OP posts:
Original poster
mystupidmistake · 25/08/2019 20:48

Posted too soon ... I was hopeful there’d be a way to get it removed.

No haven’t applied for the mortgage yet. Will be late spring I think.

Got about £4000 on credit card. Most of it just this last month taken for home improvements. On 0%.

OP posts:
UndomesticHousewife · 25/08/2019 20:48

Was it just a late payment that's now been cleared? Because that will stay on for only 6 months so you'll be fine.

How much were you hoping to remortgage for? Because you were able to take a loan out not too long ago for 35K, i would rather have taken the loan if it's unsecured and pay it off more quickly than remortgaging.
Also overpaying so much per month, that amount could have been saved and added to the loan for the renovations.

However if you need 150K then it obviously won't work.

Original poster
mystupidmistake · 25/08/2019 20:52

Yes I’ve cleared it now but it’s definitely marked on there in all it’s glory. I can hope that if they won’t remove it, in 6 months it’ll have gone or be less of an issue anyway.

Nothing like £150k. We’re hoping for about £40k and originally we did think about a loan that size is quite scary. I know that’s ridiculous because a mortgage is no different. Obviously just the payments would be a lot less ...

OP posts:
UndomesticHousewife · 25/08/2019 21:04

A loan that size is scary but if it's unsecured then it may be a better option. It would be for me as I'm looking to clear my mortgage as soon as possible but maybe for you it's not.

You'll have to pay a lot of interest if it's added to your mortgage. The payments may be higher but you're overpaying by 50% anyway so you could use that money for the repayments if it would more or less cover it.

BigBadBarryatemyboat · 25/08/2019 21:32

Late payments stay on your credit report for six years, not months. It's rare for them to be removed as they are a true reflection of your activity, whether a genuine mistake or not.

As your looking to borrow more money you will probably have to go through credit checks. One late payment shouldn't torpedo your application but I suggest engaging a broker.

Scarfaceclaw21 · 26/08/2019 06:21

Any money you owe on loans and credit cards will be used in the banks calculation of how much they can lend to you, so you would be better off repaying your credit card than over paying your mortgage. Even if it is on 0% interest - it is still a monthly financial commitment.

Original poster
mystupidmistake · 26/08/2019 07:47

Thanks all. Yep planning to get the card paid off ASAP but hopefully affordability shouldn’t be a problem.

OP posts:
OnlyFoolsnMothers · 26/08/2019 07:50

1 late payment doesn’t go immediately
On your credit rating. Do you track your credit rating online- see if it’s showing next month? (I highly doubt it is)

Original poster
mystupidmistake · 26/08/2019 07:52

It is showing it must have been from last month. I’m very angry with myself. I know the numbers don’t mean anything apparently but my rating has gone from ‘excellent’ to ‘fair’. My broker is going to have a fit as I was just telling him last month it was excellent and no issues at all Blush

OP posts:
BeverlyGoldbergsHairAndJumpers · 26/08/2019 07:57

I think you need to look at equifax as it’s the most detailed credit report. You can usually call them once you have an account with them (it’s either free or just a few quid the first month) to get advice.

They helped me take something off mine that was a mistake.

Gizlotsmum · 26/08/2019 08:01

Could it be the new credit card that has tipped the credit rating. If they think you have 2 credit cards (which you did last month) that would impact you score rather than a recent last payment. Once you have cleared the balance (so maybe next month) it might correct itself. At the moment it will see 2 potential debt amounts?

NeverTwerkNaked · 26/08/2019 08:14

Did your broker advise you to overpay the mortgage then remortgage, rather than putting into a savings account? If so I think I would get a new broker!

I wouldn't despair over the late payment. Just ring the relevant bank etc and get it sorted

Original poster
mystupidmistake · 26/08/2019 08:16

I’ll sign up for Equifax, thanks.

Oh it could be I suppose? Hopefully that’s it. I’ll still call them and see if there’s anything they can do but sincerely hope that’s what’s upset my credit! The new CC is with the bank so maybe that explains why they’ve put my loan amount down to nothing as well? Hopefully hopefully!!

OP posts:
Original poster
mystupidmistake · 26/08/2019 08:21

@NeverTwerkNaked no she just knows we’re awful at saving and when I said I wanted to overpay it was better than nothing Grin

OP posts:
Spam88 · 26/08/2019 08:27

The bank wouldn't be aware of your credit report unless you've applied for something though would they?