Owing energy company and credit score 24 August 2021 at 2:35PM in Credit file & ratings 4 replies 121 views

sunriseandgo

Looking to buy a house soon. It will be our first mortgage. Will the fact I have a large sum of debt with my energy company be an issue? We have a plan for paying it off. We didn’t know we were under paying for such a long time / I’m terrible at remembering to submit readings. Thank goodness smart meters exist now! 

ItsComingRome

Possibly.

This debt may or may not show on your credit files but it will need to be declared on your mortgage application.

[Deleted User]

Your credit score is not seen by anyone but you, if the debt is reported on your credit file, then it will be an issue. Otherwise continue to repay

MattMattMattUK

sunriseandgo said:

Looking to buy a house soon. It will be our first mortgage. Will the fact I have a large sum of debt with my energy company be an issue? We have a plan for paying it off. We didn’t know we were under paying for such a long time / I’m terrible at remembering to submit readings. Thank goodness smart meters exist now! 

It might well make sense to use what would likely be a very small proportion of your deposit to clear this debt, carrying a large energy debt does not look good from a financial management perspective. 

Nebulous2

Who is it with? Many utility companies don't report to the credit reference agencies, but some do. 

Have you checked your reports with all three main CRAs? That's a good idea anyway before applying for a mortgage, regardless of this debt.