Will late credit card payments hit my mortgage?
Monday, 18 February 2008 12:00
A reader is planning to buy a home, but is worried her partner's late credit card repayments will stand against them.
Drawing on years of experience, mortgage adviser Katie Tucker - technical manager at fee-free whole of market mortgage broker charcol.co.uk - takes him through the situation and what it means for his finances.
Natasha from Derby asks:
My boyfriend and I both have credit cards but, whereas I always make a payment in time, he always makes late payments.
Will this count against him when we apply for a mortgage?
And should we both get one of those credit reports to see if we're OK?
Katie responds :
Yes, this will count against him.
However, late payments are not so much of an issue you would need to have a subprime mortgage.
They might put you down a credit score level, so you are offered a smaller income multiple for your maximum loan size.
Please get your credit reports from Experian, CallCredit or Equifax. (Despite the added services they offer, a copy of your credit record should cost just £2)
If you have a question for Katie, go to the myfinances.co.uk Ask the Mortgage Expert section.
For more information on the issues discussed here, go to mortgage broker charcol.co.uk or call 0800 358 5560.
Charcol Limited is authorised and regulated by the Financial Services Authority (FSA registration number 427339). The FSA does not regulate credit cards, personal loans or some investment mortgage contracts. Some buy-to-let mortgages are regulated by the Consumer Credit Act (CCA).
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