Debt payment appearing on Bank Statement
Smevchenko
Posts: 102 Forumite
So, I want to apply for a mortgage in a few months, but have one outstanding debt for 3k, which is currently being paid back at £10 a month. This is not currently on my credit file, as the debt is over 6 years old. I have been paying it back for a while though, before the 6 year period was up. So although this won't appear when a lender does a credit check, if they ask for bank statements and ask what that payment is for, could this lead to difficulty in obtaining a mortgage? I would assume they would want some official details about the debt and how big it is, I couldn't just say it was only a couple of hundred pounds.
Is there a way to make a payment to this company without it appearing on a bank statement? Can you pay via credit card or paypal for example?
It is unlikely I could pay this off in full before the need for a mortgage arises. Although If I could reach a 30-40% settlement then maybe I could.
Obviously paying it off at the level I am is not an issue financially, but despite it not being on my credit file, will it still be an issue when going for a mortgage?
Is there a way to make a payment to this company without it appearing on a bank statement? Can you pay via credit card or paypal for example?
It is unlikely I could pay this off in full before the need for a mortgage arises. Although If I could reach a 30-40% settlement then maybe I could.
Obviously paying it off at the level I am is not an issue financially, but despite it not being on my credit file, will it still be an issue when going for a mortgage?
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Comments
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Smevchenko wrote: »Is there a way to make a payment to this company without it appearing on a bank statement? Can you pay via credit card or paypal for example?
You need to ask the company.0 -
How is the payment being taken?
Is it a debit card transaction, a direct debit, a bill payment, a standing order?I’m a Forum Ambassador and I support the Forum Team on the Budgeting & Bank Accounts, Credit Cards, Credit File & Ratings and Energy boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
If you can't be the best -
Just be better than you were yesterday.0 -
Failure to declare the debt fully on your mortgage application amounts to fraud. You need to consider carefully whether the risk is worth it. Mortgage lenders share data such as this via a company called National Hunter run on their behalf by Experian. Link below.
http://www.nhunter.co.uk/0 -
'Want to apply for a mortgage' and 'problem debt of £3K' are words which should not be appearing in the same sentence.So, I want to apply for a mortgage in a few months, but have one outstanding debt for 3k, which is currently being paid back at £10 a month.0
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