On Time, Every Time: How Being Late on Monthly Payments Can Affect Your Essex Mortgage
How Delayed Payments Can Impact Your Essex Mortgage
If you have a tough time remembering to pay your bills, take comfort knowing that you are not alone. Many people across the world tend to submit late monthly payments, which significantly impacts their credit. Let us understand the adverse effects of paying your mortgage or other monthly payments later.
Your Credit Score Is At Risk
Practically all banks, credit cards, mortgage companies, and other lenders depend on your credit score to evaluate the risk of lending you money. Suppose you pay any of these late, including your mobile phone bill or a department store credit card. In that case, the result could be negative remarks that land on your credit score. If you are late several times or do not repay the late payment, it will cause your score to drop.
Refinancing Can Be Affected
If you have a mortgage already, a lower credit score could be an issue when you attempt to refinance. Refinancing typically involves taking out a new mortgage. Your lender will reassess your risk with your credit score acting as one of the indicators. In case you have been making late payments, you may be left with the option of settling for a higher interest rate, or a new mortgage may be declined for you.
Making A Late Payment? Contact Your Lender
If you are left with no choice but to make a late payment, always call your lender immediately. There may be a grace period where you can avoid penalties. In case that short period is enough for you to make the payment, you will be fine. Otherwise, you can inform them regarding your circumstances and understand the various alternatives that you have.
It is crucial for you to pay your monthly payments on time, although you may make minor sacrifices in other areas. That is because a better credit score will provide you with more opportunities to make positive financial moves in the future.
You can learn more regarding monthly Essex mortgage payments by contacting us today