Missed mortgage payments?
Here are our frequently asked questions.
What is a credit score?
Credit scoring is a rating given to you by a credit reference agency. Mortgage lenders and banks will use this information to work out how risky you are to lend to.
What things affect my credit score.
Here is a list of some of the things that can affect your credit score when applying for a mortgage:
- Time at your current address – Lenders consider 3 years address history and are looking for how stable you are.
- Registered on the electoral roll – Lenders use this information to track your previous addresses.
- How you have paid existing and previous credit.
- Other people you are financially associated with – A partner or spouse’s payment history can affect yours.
- Number of recent credit applications.
Do all lenders credit score?
Not all lenders credit score, some lenders just credit search. We will sometimes use this type of lender if credit scoring is an issue or very low.
How can missed payments affect your mortgage?
Missing a mortgage payment will usually be registered with credit referencing agencies and affect your credit score. It is important that you stay in regular contact with your mortgage lender and clear any arears as soon as you can. Your home is at risk if you don’t keep up repayments on your mortgage.
What to do if you miss a mortgage payment.
Speak to your mortgage lender and explain the reasons why. Agree a plan to make regular repayments and a way to clear the arears. This could be paying extra each month or in more extreme circumstances adding the arears to the mortgage.
What is a default?
The term default is used when you have breached the terms of your loan or mortgage. A legal notice will be sent to you and recorded on your credit file. It is important that you speak to your loan or mortgage provider and try to work a plan out to clear the arears. If you do not, the next step could be court action.
Defaults, depending on when they were registered can affect your ability to obtain a mortgage.
What is a county court judgement or CCJ?
A CCJ or county court judgement is the record of breach or the terms and conditions of a loan. The lender can then use that judgement to recover the debt.
CCJ’s, depending on when they were registered can affect your ability to obtain a mortgage.
What is an IVA?
An IVA or Individual Voluntary Arrangement is an agreement you make with your loan or credit card providers to pay part or all your debts. An insolvency practitioner is appointed. The agreed amount of money is paid to them each month and then divided up and paid to your loan and credit card providers. Depending on when you started your IVA and how it has been conducted it can affect your ability to obtain a mortgage.
How long does it take to remortgage?
The remortgage process, can take anywhere from 2 weeks to 6 months depending on how complex the situation is.
The following gives you a simplified version of what happens.
- Find the perfect mortgage.
- Submit application to the mortgage lender.
- All applicants credit history will be checked.
- All required documents sent to the mortgage lender.
- The mortgage lender will check the documents.
- The mortgage lender will check the property.
- Once the mortgage lender is happy with everything, they will issue a mortgage offer.
- It’s time for the solicitor to complete the legal part of checking the property.
- The solicitor will then pay off the current mortgage lender and everything is transferred to the new mortgage lender.
Don’t worry we will check and chase everything until the big day.