Made Redundant, mortgage due, credit rating?

F

FutEng

Registered User
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23
Hi,

I have been made redundant recently and met with the bank to arrange a 3 month holiday until I sort something out on the jobs front. I filled out the form and off goes my application. I have good prospect of getting something sorted before xmas.

I was verbally told it could take up to 6 weeks for a decision to come through on whether they would grant the holiday or not . I told the bank rep that I wont be able to pay the mortgage in Oct. He said they will try on the date its due and try a second time 5 days later and if they cant get the payment I get a mark against my credit rating.

I want to avoid this credit rating black mark yet the money for next months mortgage could be the food on the table for November so I am not putting myself in that position.

Is a credit rating mark that serious?

Have I any rights here seen as I have given them 4 weeks verbal notice on this?
 
Unfortunately there can be an up to 10 week wait in getting these decisions from some banks. This is ffrustrating for people like yourself who need a quick response. The missed repayment in Oct will affect your credit rating as you will miss a repayment without the permission of the Bank. In terms of seriousness 1 missed repayment is not a major issue in the long term. I'm assuming that you won't be looking for any additional borrowings in the next 12 months.
 
Thanks Brendan.

I have no plans to borrow any money in the next 12 months. Though I do plan to borrow for a small extension to the house in early 2013 assuming I am in full employment and all is going well at the time. I plan using the credit union for this.

It wont be the end of the world if the extension doesn't get built either mind you.
 
If you do miss the payment and the bank puts a mark on your credit record, you can always come to an agreement with the bank to have it removed if they end up giving you the holiday. To be honest, I would be surprised if the Bank put a mark on your record after one missed payment. Which bank is it? As long as you can explain the missed payment, it is not a huge issue. You have doing everything right so don't worry.
 
The bank don't deliberately put a mark on your credit record, it happens automatically if the payment is not paid within a set length of time, the record holds a list of your payments so it's not at the banks discretion just as equally they will not be able to remove it either.
 
wbbs said:
The bank don't deliberately put a mark on your credit record, it happens automatically if the payment is not paid within a set length of time, the record holds a list of your payments so it's not at the banks discretion just as equally they will not be able to remove it either.
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That is incorrect. A payment can be missed for any number of reasons including a bank error. Anything can be removed from your credit report if the the banks agrees. They are just not obliged to remove it unless it is inaccurate. Some banks allow for up for to three missed payments before they touch a persons credit record.
 
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