Understanding Lending criteria

Blinkbadger

Hi all

I am wondering if there is anyone who can help me understand the lending criteria for mortgage lenders.

If you see the following statement "No arrears on any current or previous forms of credit in the last 3 years, where the
cumulative amount overdue exceeds two monthly payments" what does this mean?

If on a credit report you have 001012012000 is the cumulative amount 7 or is the cumulative amount 2 as this is the highest it has ever gone?

Any help you can give would be really appreciated.

Many thanks

Hannah

ethank

You have not got this correct.

Best explained with an example, If the monthly loan amount is £100, the statement above says you cannot be more than £200 behind in the last three years.

Blinkbadger

Thanks ethank that makes more sense. Thanks for coming back so quickly