Potential for missed mortgage repayments leading to bad credit rating?


(Justin Seals) #1

I’ve just got my current account and have been excited for months for moving everything across to it. However, with the recent outage of Monzo services (even for the 1.5 hours or whatever it was), future failures could have the potential to be when my mortgage payment is meant to come out, meaning I miss a payment and get a bad credit rating.

I’ve tried looking online and it seems there is a 15 day grace period for late payments for Mortgages (and Monzo won’t be down for 15 days), but it still makes me nervous about the posibility. What are your thoughts?

Are there potentials for the standing order/DD service of Monzo to be somewhere seperate that can’t ever go down? I don’t know enough about mortgage repayments or missed payments, or late or how your credit rating is really affected and what the possibly implications are.


#2

I don’t think any firm would ever guarantee their service never going down. I think that is an unrealistic expectation.


(Hugh) #3

Lloyds’ infrastructure recently went down for a few hours (that takes out Halifax and TSB too), remember when RBS group had a couple of days when people’s money didn’t hit their accounts so they couldn’t pay DDs?


(Louis Otto) #4

I’m fairly sure Monzo have technical failsafes in place so that if a payment can’t go through they will put it in the queue and resolve the payment when the systems come back online.

I ask you, when has a bank in recent history been down for 15 days? Sh** happens, but what Monzo have proved time and time again is that their transparency and speed in resolving issues like this is exemplary. I wouldn’t worry…


(Tony Hoyle) #5

No company would give you a bad credit rating because of one payment being late.

That exact thing happened to me… the DD that was setup had something wrong with it (which monzo admitted to and presumably have changed things internally to stop it happening again) so payment was rejected. I simply paid the building society by faster payments as soon as I was aware. Stuff happens, and they’ve see it all before.


(Justin Seals) #6

I wasn’t aware of that, my post is more out of ignorance about what can happen or what should. I’ve never had a payment fail in 15 years of banking, till Monzo, hence my nervouseness - maybe I was just lucky =]

I’ve not said Monzo does anything wrong, and their transparency is great. My nervouseness is just I don’t know what happens with a late mortgage repayment - I’ve never done it, so wanted to pose it to the community for help.

That’s the type of thing I wasn’t sure about from a quick Google and wanted validation, thank you =]


(Louis Otto) #8

You should read up a bit about how credit ratings are calculated, if this sort of thing worries you - you’ll definitely see that it isn’t so bad. For what its worth, late payments on credit cards/mortgages put a red mark on your record which gets downgraded if it’s resolved quickly, and it’s a temporary negative mark which gets erased within a few months anyway. Given the length of the average mortgage, a quick drop isn’t going to knock you at all.

Also you’re forgetting the fact that a quick phone call to your mortgage provider explaining the situation will most likely result in them removing the late payment from their records.


(MikeF) #9

For me, all banks have problems on occasion. Monzo is no different. I hope they have none at all, of course but I don’t feel the risk is any greater than with any other bank.

(My daughter was out with her Nationwide debit card on the afternoon they lost some cohesion for a bit. She wasn’t happy but didn’t know thw reasons for her problems.)


(system) #10

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