Arrangement to Pay Impact on Lending Criteria

Malmo

Hi, I'm just wondering if I could get some advice regarding some historic issues on our credit files and what approach we should take when we eventually speak to a residential mortgage broker at the end of April/start of May 2015.

My wife's credit file at Experian, Equifax & Noddle/Callcredit shows AP/AR markers on a Barclays current account due to an overdraft being recovered by the bank, for the following periods:

2011: Jan to May; Jul to Dec
2012: Jan to Apr; Jun to Jul
No markers since Aug 2012, when the account had been brought back into credit.

I have read some threads here and elsewhere debating the severity of "Arrangement to Pay" on an account when considering a mortgage application, but I'm no clearer on the matter as some forum members believe it to be the same as a default and some don't, particularly in the context of the lending criteria set by lenders.

So, my questions are:

1) Am I right to assume that "Arrangement to Pay" is equivalent to or similar to arrears on an account, or worse (such as a default)?
2) Which high street lenders (if any) would refuse an application outright based on the age of the markers I've mentioned above?
3) Would I be best advised to approach a specialist broker experienced in adverse credit issues?

Thanks.

Thrugelmir

In technical terms a default is the breach of the terms and conditions of a contract. While there's much focus on defaults applied on Credit Reports. Any form of default late payment, arrangement to pay, going over limit etc. Potentially will have a detrimental impact on your ability to obtain credit. Whether it does or not is dependent on the criteria set by the lender for the product being applied for.

Newbie_loan

I'm int he same place...


My girlfriend has AP on her credit report for 6 months but unsure how bad it is.

Newbie_loan

Back in 2010 though

Malmo

Malmo wrote: »

So, my questions are:

1) Am I right to assume that "Arrangement to Pay" is equivalent to or similar to arrears on an account, or worse (such as a default)?
2) Which high street lenders (if any) would refuse an application outright based on the age of the markers I've mentioned above?
3) Would I be best advised to approach a specialist broker experienced in adverse credit issues?

Thanks.

Hi everyone, any advice or guidance on my questions above would be appreciated.

Many thanks.

amnblog

1) Worse
2) Most
3) Yes