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Taking Barclaycard out of AP
izools
Posts: 7,513 Forumite
in Credit cards
Hi all!
Just wondering...
... It's come to the time where mother has to remortgage, she is only looking for 45% LTV so should get a great rate.
The only default she only ever got in her life has dropped off her report last week, so her credit is looking absolutely fantastic - she's not missed a single payment in the last six years - bar one thing -
- Her Barclaycard is in an arrangement to pay. It is marked as "AP" on Equifax, and marked as [0] every month on Experian, but with a "Arrangement" special indicator.
I would imagine this will cause problems, even though she is including her credit card balances into the new mortgage.
Questions:
Would it be best to call Barclaycard to take the account out of AP and struggle with the higher payments for a month or two before applying for a mortgage?
If she were to do this, would they want the last six years worth of underpayments in one lump, or just re-instate the account and charge the standard APR with a 2.5% minimum payment as if she'd never had it in an AP?
The card has been in an arrangement for over six years (would have been better if she'd let it default in retrospect, eh?!) but she's never been late with the arranged payments, hence 36 months of [0]s on Experian, I'm just under the impression that the "Special Status Indicator: Arrangement" will put a big doubt in the Mortgage underwriters mind, expecially considering she is on a limited income with retirement fast approaching.
Advice greatly appreciated
Just wondering...
... It's come to the time where mother has to remortgage, she is only looking for 45% LTV so should get a great rate.
The only default she only ever got in her life has dropped off her report last week, so her credit is looking absolutely fantastic - she's not missed a single payment in the last six years - bar one thing -
- Her Barclaycard is in an arrangement to pay. It is marked as "AP" on Equifax, and marked as [0] every month on Experian, but with a "Arrangement" special indicator.
I would imagine this will cause problems, even though she is including her credit card balances into the new mortgage.
Questions:
Would it be best to call Barclaycard to take the account out of AP and struggle with the higher payments for a month or two before applying for a mortgage?
If she were to do this, would they want the last six years worth of underpayments in one lump, or just re-instate the account and charge the standard APR with a 2.5% minimum payment as if she'd never had it in an AP?
The card has been in an arrangement for over six years (would have been better if she'd let it default in retrospect, eh?!) but she's never been late with the arranged payments, hence 36 months of [0]s on Experian, I'm just under the impression that the "Special Status Indicator: Arrangement" will put a big doubt in the Mortgage underwriters mind, expecially considering she is on a limited income with retirement fast approaching.
Advice greatly appreciated
Cashback Earned ¦ Nectar Points £68 ¦ Natoinwide Select £62 ¦ Aqua Reward £100 ¦ Amex Platinum £48
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Comments
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It will ring alarm bells with the current climate, she wont be able to change the past ones but the sooner she gets rid the better really0
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Thanks.
Does anyone have experience with this? Do credit card companies ask for the backlogged payments in order to bring an account out of an AP? As it's been in an AP since 2003 and if they asked for the backlogged payments that would... well clear the balance twice over given they've not charged a penny interest since 2003!
Don't want to advise her to to it and have a bill turn up for the full amount...!Cashback Earned ¦ Nectar Points £68 ¦ Natoinwide Select £62 ¦ Aqua Reward £100 ¦ Amex Platinum £48
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