Confusion over Lending Crieria

chromac

So got AIP from Woolwich. Credit report isn't amazing, but its not terrible. we attempted a few months ago but we were declined straight away due to having a missed payment on a CC within 12 months - that missed payment now fall outside of the 12 month window so I assumed that this was why it was no accepted - same broker same lender etc.

I am slighty concerned about some missed payments that happened 14, 15 and 17 months ago all on the same CC - two of them have a '1' on the status and the other has a '2'.

Now, the policy states:

Any adverse credit identified, as detailed below, must be declined

Arrears of 3 or more months on any one account in the last 6 months

Cumulative amount of arrears at any point in the last 2 years of 3 or more monthly payments on any one account, ie 3 or more instances of a late payment

I understand that I am okay on the first point - but I don't understand the difference on the second one - I HOPE that the word cumulative means that as long as the three missed payments are not back to back, I should be okay?

Any help or advice would by greatly appreciated

minimike2

So you have a payment that was two months late and two payments one month late - That is three or more instances of a late payment. So that would breach the policy.

Cumulative means in total over the period of the last 24 months.

Back to back would be "consecutive".

My concern is why your broker has submitted your application, already knowing your previous credit history and presumably having had access to your credit file and knowing what the policy says.

SavingSteve

I know its a bank holiday today, but these sorts of questions should really be going to your broker (who after all is being paid to provide this advice) as opposed to posing it to a bunch of strangers on a forum.

chromac

minimike2 wrote: »

So you have a payment that was two months late and two payments one month late - That is three or more instances of a late payment. So that would breach the policy.

Cumulative means in total over the period of the last 24 months.

Back to back would be "consecutive".

My concern is why your broker has submitted your application, already knowing your previous credit history and presumably having had access to your credit file and knowing what the policy says.

See, my broker does interpret this as consecutive, as in three payments that have accumulated together - which I found hard to understand but they didn't use the word consecutive or cumulative in the first condition so why use the cumulative in the second....... also why couldn't they just put into one point as 'three or more missed payments in 2 years"

I don't intend on wasting anybodies time here, I was interested in other interpretations of it however

Edit: it would make more sense if it stated " where the cumulative amount
overdue at any point reached three or more monthly payments within the last two years"? or is that totally different definition?

chromac

SavingSteve wrote: »

I know its a bank holiday today, but these sorts of questions should really be going to your broker (who after all is being paid to provide this advice) as opposed to posing it to a bunch of strangers on a forum.

I have of course asked my broker who was very quick with a positive response, but was interested in others interpretations, as it doesn't lay so clear cut with me.

minimike2

Well I would be interested in hearing back what the decision is, because personally I view the wording very differently and Cumulative to me is an addition of everything in that time frame. Also given it is clarified in the example it gives "ie 3 or more instances of a late payment" to me makes it pretty clear that is it not consecutive.

Smodlet

Consecutive means one after the other.

Cumulative means altogether, added up together, in total.

chromac

Yea that seems to make more sense to me now, which I suppose is not good news. If I'd have realised sooner I wouldn't have allowed the hard credit check to go through. Once it got approved I kinda let it gets my hopes up a tiny bit.