For
other credit problems go to Bad
Credit
Missed
Loan Payments
This
is caused when payments are late or missed for a mortgage
known as mortgage arrears or payment arrears. Unfortunately
lenders will regard this as bad credit and an agreement
must be promptly made to address the issue.
This
may include to pay interest only on your mortgage for
a period of time, to pay off any arrears due in installments,
change the mortgage type or extend the term of the mortgage.
Credit problems will be recorded on the consumer credit
files held by credit agencies like Experian and Equifax
The
lender may increase the rate, add on any charges and not
allow further borrowing as the account is now regarded
as high risk lending. If one wishes to re-mortgage then
probably only sub-prime, adverse lenders may potentially
lend to customers with impaired credit and poor payment
history.
The
number or arrears and the time that has pasted since may
also effect the rate. After six years the bad credit will
no longer be shown on one's credit history. Though some
prime or high street lenders maybe willing to lend within
one to three years, so it is important after there has
been a problem to make monthly payments on time for the
full amount due each time.
If
the mortgage arrears are left unpaid then the lender may
start proceeding of repossession because the borrower
has demonstrated they are unable
to service the loan. A court hearing is how the lender
will ask for a possession order. A repossession order
will only be issued to a customer as a last resort after
all other ways of resolution have been first explored.
Repossession information is shared amongst lenders to
reduce future risk lending.
|
