Arrangement to pay stopping mortgage application help!

Hazard08

No not attempting to hide it. Just would like some insight in arrangement to pay. Basically they can not remove it ( I wasn't holding much hope that they would) it's really strange as the arrangement dates are 1/1/13 to 1/4/13 when this occurred last year. I did ask however and it was explained to me that as it was reported 4 weeks after then these dates are correct. I'm still a bit baffled by this as we weren't in arrangement at the time. Hindsight would have been beautiful. We had blown through all of our savings by this point due to maternity leave. Not that that's an excuse for our stupidity, looks like our mortgage will have to wait. Think it's 3 years until it has no effect. Would have been nice to have been informed that this would be reflected in the credit report.

innovate

If you had no savings in November last year, but now want to apply for a mortgage you must since have come into quite a bit of money which you can use for the deposit.

If you have not got the money for the deposit, you won't get a mortgage for that reason.

Hazard08

Come into some money. Bonus and some gift. Shame our dumbness has caused us to wait 3 years.

YorkshireBoy

Hazard08 wrote: »

Think it's 3 years until it has no effect.

The last 3-4 years of payment history is shown on all accounts on the credit reports I've seen, ie

0000000AAAA32100000......

So if you were to close the account now the arrangement would be visible for the next (almost) 6 years.

However, if you leave the account open you may find it disappears sooner.

If you're wanting the mortgage anytime soon it looks like you'll have to appeal any decline, citing whatever reasons you think will satisfy the lender as to the arrangement to pay.

A word of warning though, a failure to manage your day-to-day financial affairs (ie your current account) won't look good to a mortgage lender. Indeed, it'll appear worse than a failure to manage a credit card agreement satisfactorily.

Hazard08

Unfortunately I can't see how we can appeal it. Looks like we will have to wait ,until it comes off the account, to get a mortgage. Never mind hey. Thanks for all your replies. I've no accepted this is a lost cause through our own neglect. I would just like to warn people if you can pay off a debt in a better way, do it! Don't arrange to pay of you can help it.

Thrugelmir

Consider opening a Nationwide Save to Buy account or something similar. Will help you meet a lenders criteria when the time comes to apply for a mortgage.

YorkshireBoy

Hazard08 wrote: »

Unfortunately I can't see how we can appeal it.

You've misunderstood me.

If you're declined a mortgage, and they cite (or allude to) this as the reason, then it's the mortgage lender you'd appeal to.