First time buyers - will some late payments on my recent bank statements get us rejected for a mortgage?

[jlp11]

Hi!

We have been in a rental for 5 years, have had an offer accepted on a property, using the agents mortgage broker and have a mortgage in principle.

However I have some late payments on my bank statements from Jan - Feb, the DD's bounced and I paid 1-3 days late on around 6 things.

Really stupid and I'm normally not like this, was a case of my phone was full and I wasn't getting notifications of the messages from my bank telling me there wasn't enough money in my account for the payments coming out (silly relying on this too, lesson learned!). I had the money it was just in the wrong account. We also didn't expect to find a house we wanted this early on in the year so hadn't really been keeping my eye on my bank accounts.

My credit report is all green apart from 1 adverse in September 2022, our rent (which is more than the monthly payments will be on the mortgage), council tax and water bill is paid from the account and has always been paid on time.

Any advise or experience of applying for a mortgage with a few bounced direct debits that were paid a couple of days late would be really appreciated.

Worried I've ruined our chances of being accepted. I've drafted out an email for the mortgage broker and will be sending her my credit report and bank statements for the account.

TIA x

Your bank account won't be viewed from that point of view, the mortgage company will look at your credit report so as long as they're not recorded as late payments you should be fine. Good luck!

What were the late payments for? They will be on your credit report as missed/late payments.
What is the adverse on the credit report?

You need to get your credit reports from Experian, Equifax and the other one which I can't remember rthe name of it.

Depending on the bank you are applying with it can have an effect.
We had just one late payment on our credit report within the 6 years it was late by a few days and I then paid off the whole thing in full a few weeks after but the bank still didn't like it and our mortgage broker spoke to the underwriter and explained it was an oversight and it was paid in full shortly after then the bank approved the mortgage.

They won't always appear as a late payment if it's just a 24/48h refused DD. agree definitely need to check the reports, but I'd just see what the mortgage provider comes back with to be honest but all sounds like it'll be ok if you already have a MIP.

Your phone was "full" ?

This is a bigger issue than the the impending mortgage.

How did that happen?

I'd sign up to Experian or another credit rating agency. You will get a feel for how good your rating is. A couple of bits won't be a problem.

🤣 sorry my memory was maxed out and nothing was working properly on it, so I was missing notifications, I didn't realise how much I relied on them until they weren't around properly for a few months!
I've had a good clear out now!

Thanks, yes my credit report is clear and green for the months, I've checked transunion, equifax and checkmyfile, it's just showing the late payments on my bank statements as they were only 1-3 days late.
We're using a mortgage broker and I've sent everything over to her this morning so hopefully she can help us avoid sending over 3 statements 🤞

So when you say late payments, you mean they've charged you late payment fees? I wouldn't worry to be honest, they don't view your bank account for those reasons!

I was charged 1 late payment fee for the one that was 3 days late, but paid the fee straight away too.
That's good to know, my mortgage broker doesn't seem too concerned by it but I had read so much stuff online over the weekend I stressed myself out!

This is why you are using a mortgage broker. She won't get paid unless she secures you a mortgage (I mean I hope you aren't paying her)!

You're being given incorrect advice here. If you have bounced direct debits on your bank statements and you need to show bank statements to the lender then yes you will have a problem

luckily they’ve only asked for 1 month of bank statements so hopefully it will be okay 🤞

They can also run another check before completion - so it depends if the banks report the late payment to your credit file.

Sign up to checkmyfile, use the free trial period to get the report (across all the major credit reference agencies) and see what is actually on there. Send it to your mortgage broker and get their view on it

A late payment is quite different to an actual default? I'd be surprised if you were rejected for payments that were a few days late

@jlp11 I was going to say you might be OK if they only ask for one months stats
As long as the late isn't marked on your credit file but if only a few days then you should be OK
Hope it all works out

Hopefully it will be ok and your broker should be able to help.
Sometimes a Lender does run a Credit check again just before they release the funds but it doesn't sound like it would be a huge problem if they did