Arrangement to pay on credit file - worried about consequences

edited 30 November -1 at 1:00AM in Credit File & Ratings
2 replies 614 views
angela85angela85 Forumite
2 Posts
edited 30 November -1 at 1:00AM in Credit File & Ratings
Hello, this is my first time posting so please bear with me. I am looking to buy my first house with my husband and have been looking into my credit file to make sure everything is up to date and in order. Everything looks ok apart from one thing that has come up with a Natwest current account I had that I recently closed.

It was an advantage gold account with an authorised overdraft that over time I had stopped using as I had opened another bank account elsewhere. I got a letter at the beginning of the year advising that the account had become inactive and I needed to pay some funds into it, so I did this and I was told I needed to be sure to pay money in regularly - I said this was fine as I intended to pay off the overdraft and close the account anyway. Now, one way or another, with a manic first half of the year (getting married, house being burgled, dealing with a long and difficult insurance claim), I forgot to pay money into it and got another letter in the summer. This time I said I would definitely pay the money in and close the account - I did this in 3 instalments over the course of 3 months and finally closed the account at the beginning of this month.

When I checked my Equifax credit file an 'Arrangement to pay' notice has appeared on my file for the month of July and this concerns me as I understand this can be viewed very negatively by lenders. From what I understand the definition of 'arrangement to pay' to be I did not enter any sort of agreement or reduced payment plan with Natwest and have nothing in writing; rather I had just agreed to pay an unspecified sum into the account to keep it active. I was within the agreed overdraft limit and did as they asked. So although I did allow the account to become inactive for a second time, which I know was my fault, what they have put on my credit file seems a little heavy handed considering I have never had any problems with the account before and haven't had issues with debt management, credit cards etc in the past. Natwest say they cannot remove the mark as it is correct - it does only show for one month but I have no idea how bad it could in terms of our mortgage application.

We have got an Agreement in Principle from Halifax but I understand that at this stage Halifax would have only done a soft search of my file so may not have picked this up. So I guess what I am trying to find out is, is this one issue likely to affect my ability to get a mortgage? Our mortgage broker says not to worry but I can't help but feel concerned.

Thanks in advance for any advice.

Replies

  • TixyTixy Forumite
    31.5K Posts
    ✭✭✭✭✭
    It could affect your ability to get a particular mortgage yes.

    Only time will tell whether it affect this application, but your mortgage broker should have a reasonably good idea of how strict the specific lender is likely to be given all other details about your financial position and mortgage/ltv etc.
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
  • Thank you for your reply. I explained the situation to our mortgage broker and he didn't seem too concerned. Other than this both our credit histories are pretty good, we have a 10% deposit and looking for a property of around £230 - £240k. Our joint income is £65k. I just can't help but worry that we'd get all the way through the process of finding somewhere, then not being able to get a mortgage, but I'm struggling to find answers about how likely it is to be a problem.
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