Credit Agreement on House Insurance a bad thing?

SoManyQuestions_2

Hi,

I'm in the process of buying a house and have been offered fair priced house insurance which I'll need to have in place from day 1 of ownership, by my mortgage advisor.

I have the option of the annual payment (£227 for the record) or 12 monthly payments.

The costs of buying are killing me, so I'd much prefer the monthly payments. However, my quote says:

"is provided by Premium Credit Ltd under a credit agreement."

My question is, is it bad to enter into a credit agreement, will it affect my (current very good) credit rating, what are the pitfalls?

If the monthly payments were to the actual insurance provider (LV) then I'd be less worried, but the fact it's a third party and features the phrase "credit agreement" has be concerned?

Should I swallow the hit and pay the annual cost up front, or am I worrying about nothing? I'd hate for this to cause me grief down the line when I need to remortgage.

Thanks any and all replies.

MisterBaxter

I have a similar arrangement on my car insurance, the insurance is through Allianz but the payments are through a credit agreement that I pay monthly.

The credit agreement doesn't show on my credit report for EX/EQ/CC, not sure if it because it is linked to insurance but provided you pay it by DD each month I'm not sure it would really be an issue.