Re Mortgage Panic
I am in the process of remortgaging and have received my mortgage offer.
However, I have just received a letter from my credit card provider to say that as I have recently been late making two payments (one day on both occasions >:(), they are increasing the card's APR.
I am not too fussed about this personally as I usually pay the balance in full. But the letter did say "we have looked at your recent credit history". This has panicked me as no doubt that this check, and the reasons for doing it, will have been noted on my credit file. I am really worried now that the Bank will see this and decide to withdraw the offer. When I did the initial application the credit check came back as A1, whatever this means, presumably it’s good?
How likely is a withdrawal of the offer, or am I worrying unnecessarily?
However, I have just received a letter from my credit card provider to say that as I have recently been late making two payments (one day on both occasions >:(), they are increasing the card's APR.
I am not too fussed about this personally as I usually pay the balance in full. But the letter did say "we have looked at your recent credit history". This has panicked me as no doubt that this check, and the reasons for doing it, will have been noted on my credit file. I am really worried now that the Bank will see this and decide to withdraw the offer. When I did the initial application the credit check came back as A1, whatever this means, presumably it’s good?
How likely is a withdrawal of the offer, or am I worrying unnecessarily?
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Comments
They may have only done a soft search to check, one that won't necessarily have an impact on your credit file. Have you been applying for lots of credit recently? If not, don't panic - one search isn't going to have too much of a bearing on your file.
It's almost certain that the two emboldened sections of their letter are related.
I would suggest that what they mean is that they have reviewed your recent credit history with them and the two late payments have triggered an increase in the interest rate on your credit card account.
Highly unlikely and very probably.
So it may depend on who you bank with, as to what the final outcome will be.
I changed my current account just before Christmas. I did bank with my credit card provider. However, after successfully reclaiming a total of £3.5k in fees for mis-sold ppi and a packaged bank account, I decided to switch. The final straw came when I called in branch to downgrade the packaged account to a standard one, I was ushered into see the manager, who then pressured me into making an appointment for review of my account, aka hard sell of products I neither need nor want.
I have decided to keep the credit card for the time being as the apr is, or was, favourable and I didn't want any more credit checks.
The mortgage offer is from the bank I now bank with. I am switching fro my current provider - a building society - because I am out of deal.
Late payments will go down as missed payments on your credit file and if you were going for the mortgage today it is likely you would fail the score with 2 missed payments so recent.
As you now have your offer out I would try and complete asap, it is unlikely but there is a chance they could re score you before completion and possibly withdraw the offer.
The reason for checking credit before completion is to check if you have taken any further borrowing since application hence possibly meaning loan could be unaffordable.