More and more utility companies are reporting to credit reference agencies and I’m seeing an increasing number of clients getting caught by missed payments.
Most people know to stay on top of mortgage and credit payments but loads of people think it’s no harm to pay your utility bills late but these can have just as bad an affect on your credit file. In a recent case we got the client a mortgage but at 2.5% higher than had they not made a load of late payments on a gas bill!
What I am seeing a lot of however is this catching out landlords.
They switch bills at their rental properties back and forth to themselves as tenants come and go and tenants also switch them back to the landlords; at end of tenancies and craftily during them too!
If bills are addressed to the rental property rather than your home you could be racking up missed payments and worse CCJs without even knowing it.
The ONLY way to know is to keep an eye on your credit file; not just when you need a mortgage but all the time.
Soon as you see a credit or bank account or a utility bill at a connected address contact the supplier to get details. Don’t wait till you apply and find its too late to do something about it.