Credit report and arrangements

leereni

Just wondered how accounts are looked at on credit reports where an arrangement to pay has been made. Also if this is so, how far back do lenders normally look on these accounts?

Thrugelmir

Are you still in the arrangement to pay?

leereni

No, I was in an arrangement on 2 accounts for a short time approximately 3 years ago. I am planning on buying in a years time but obviously they will still show.

Thrugelmir

The larger deposit you can save towards the purchase the better.

Lenders will use data obtained from credit agencies going back up to six years when credit scoring you.

You may find a smaller building society a better option for a mortgage. As they tend to be more flexible when underwriting. Particularly when they can see a good track record of regular saving. Even better if the saving has been made with them.

leereni

I read on previous posts that an arrangement on an account is basically the same as default. I appreciate this to be true as in essence you're not meeting your contractual obligations.

I have two accounts with arrangements. The first account I was in an arrangement up until 2 years ago and finished paying off the loan last year.
The second account is a mobile telephone which I was in an arrangement for a short time and have been fully up to date and paying on time the previous two years.

Does anyone have any ideas how much this would create problems for me when applying for a mortgage. I have come to terms with the fact I'll probably need 20% deposit. I earn £40,000 and intend on buying in or at worst around London.

Thanks