Mortgage arrears are not traditionally bad credit however we’ve included them here as it does have a bearing on your ability to obtain credit. Certainly, in most cases of mortgage arrears, there are also other credit problems that contribute to the issues.
Additionally, the payment history is now recorded on your credit file for 2 years. Therefore, any short term late or missed payments impact your ability to obtain finance for 2 years.
Mortgage arrears are a complicated area as a lender's assessment of arrears when applying for new finance can be complicated. As such, arrears can be lumped into one category where a loan is deemed by a lender as "not suitable" to refinance. However, on further understanding of the payments applied to a debt, the suitability of an applicant can be improved.
- How much is the arrears in total?
- How many months in arrears
- Are there legal fees adding to the total arrears
- Is the recent payment conduct satisfactory? Even though the loan is in default or repossession is imminent.
All these matters contribute to a mortgage or home loan arrears assessment.
If you have arrears on your home loan, it is essential to seek professional advice to determine the most competitive product suitable for your situation. However, other options such as a hardship application or AFCA complaint for your home loan arrears with your lender could be a suitable solution.
Contact Loan Saver Network on 1300 796 850 for a confidential mortgage arrears assessment, or submit an enquiry below.