How can I get a late payment removed from my mortgage and will it affect my credit report? (It’s possible)


How can I get a late payment removed from my mortgage - It's possible

If you’re late paying your mortgage, this may or may not affect your credit report. It just depends on how quickly you act on correcting the error. Depending on the reason for the late payment, let’s take a look at how you’d get a late payment removed from your mortgage and credit report.

How can I get a late payment removed from my mortgage? To get a late payment removed from your mortgage first make good the late payment to your lender. Your next concern is your credit report. If the late payment isn’t your fault, file a dispute to remove the mark with the lender or credit bureau. If it’s your fault, you probably won’t get rid of the mark before its time.

How can I get a late payment removed from my mortgage in more detail?

Depending on the reason for the late payment, will depend on whether or not you’ll be able to get it removed from your credit report. But either way, you should make good the late payment with your lender.

There are three main reasons why you might have a late payment on your record as follows:

  1. You’ve missed your mortgage payment. It’s not a mistake. Plus you’ve gone beyond 30 days after the payment was due.
  2. You’ve missed your mortgage payment deadline. But you’ve managed to corrected this within 30 days or certainly within the grace period.
  3. The late payment is a mistake.

Let’s consider each of these reasons in more detail.

1. What happens if you miss your mortgage payment. It’s not a mistake. And you’ve gone beyond 30 days after the payment was due

If you’ve gone past the grace period your mortgage lender allows for late payments. Plus if you’re past the 30 days beyond when the mortgage payment was due. You’ve then missed the payment deadline and technically you’re in arrears on your mortgage.

This one late mortgage payment will be on your credit report and it will seriously affect your credit rating.

How to remove this type of missed mortgage payment from your credit report

This missed mortgage payment will now be on your credit report for up to seven years. This will affect your ability to get credit for credit cards and mortgages.

There’s not really much you can do about this situation if you’ve genuinely missed the payment deadline and it’s not a mistake. Especially if you’ve not corrected it until after 30 days from the payment deadline.

The only realistic way to get this late payment removed from your credit report is once it’s more than seven years old. Having said that, if you have mitigating circumstances as to why this happened, then you may be able ask nicely to have the late payment removed.

For this you should write a goodwill letter to your lender. But all creditors, including your mortgage lender, are required to report accurate information to the credit bureaus. Which means so there’s not much chance they’ll update your account.

It could be that your employer forgets to pay your wages. Or it could be that some how your mortgage direct debit gets cancelled. If you are able to show an unfortunate set of circumstances that led to the late payment. Especially if these were outside of your control. You may be lucky to have it removed.

But the chances are if the late mortgage payment is your fault, you probably won’t get rid of the mark before its time.

More Reading: How long does a missed mortgage payment stay on your credit in the UK

2. What happens if you’ve missed your mortgage payment deadline. But you’ve managed to corrected this within 30 days or certainly within the grace period

Every mortgage lender will have slightly different payment terms and grace periods. If you’ve missed a mortgage payment by mistake, you need to correct this as quickly as possible.

You are best advised to call your mortgage lender right away and explain the problem. Ask them what will happen and ask them what their grace period is.

If you’ve passed this grace period, see if it’s not too late to catch the payment up and stop it from appearing on your credit history.

Speed is of the essence in this scenario.

If you are lucky, this type of late mortgage payment will never appear on your credit report in the first place. But if it has already been put on your credit history, you can always ask politely to see if this can be rectified.

But be aware mortgage companies don’t take kindly to late or missed payment deadlines.

3. What happens if the late mortgage payment was a mistake?

In the scenario where the late payment is a mistake, you might be able to get the late mortgage payment removed if you actually paid on time.

In this case you need to call your mortgage lender and explain what has happened. Mistakes happen, which might be an error at your mortgage lenders end, but equally it might be the fault of your bank.

Direct debits can sometimes go wrong or get cancelled by mistake. Which means you may not realise the payment is late until a default letter hits your doormat at home.

Communication is key and if it’s an error at your mortgage lender’s end, they will be able to rectify this quite easily.

But if the error is down to something your bank has done wrong, you’ll need to get this in writing from the bank to pass on to your mortgage lender.

This may take a bit of time to resolve, but if you speak with your mortgage lender nicely, they should be able to resolve the situation for you and restore your credit file back to normal.

Please be aware that in the interim, your credit report will be affected by the bad mark on your credit history.

Can I get late payments removed from my credit report?

If the late payment is correctly shown on your credit report, you probably won’t be able to get it removed before its normal expiry term.

However, if the mark on your credit report is due to an incorrect late payment, you can file a dispute. You can do this with the lender or with the corresponding credit bureau.

Can you get a mortgage with a late payment on your credit report?

If the late mortgage payment is on your credit they can stay there for six years. During this time this will affect your chances of getting another mortgage. All mortgage lenders will check your credit history when you apply for the loan.

You can still get a mortgage with a late payment on your credit report. But this depends on the lender. You are also scored on how recent the late mortgage payment occurred. Plus on how quickly the late payment was rectified.

If the late mortgage payment is a mistake, and you’re trying to get the bad mark removed, you probably should wait until it has been removed before you apply for a mortgage. Otherwise you may be penalised on the type of mortgage you can get. Also, you may not get the best deal.

Can you get a credit card or other loans with a late payment on your credit report?

If you have a late payment on your credit report, you may struggle to get a credit card or other types of loan. Credit card companies and lenders will check your credit report when you apply for the card or loan.

Whether or not you’re able to get the credit card or loan will depend on the card company, how recent the late mortgage payment occurred and how quickly the late payment was rectified.

If the late mortgage payment was a mistake and has yet to be rectified, you are best to resolve the error first, before you apply for the credit card or loan.

I hope you’ve got something from reading this article on how can I get a late payment removed from my mortgage

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Also, if you have any questions, please feel free to comment below too. Alternatively, if you need more help, please feel free to contact us on our contact us page here. Or join the discussion and ask your question in the property forum.

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