Old arrangement to pay spotted on statement

Twins

Hello, would appreciate any help from anybody who’s had old arrangements to pay and then gone on to apply for a mortgage.

I’ve got some old arrangement to pay for old debts on my statement. These are over 6 years old but no longer show on my credit file. I have been happily paying them off slowly but had been naive to think the underwriter wouldn’t ask about them.

They’ve now picked up on 2 of them from my statement and queried what they are. My broker has advised to get them paid off so we can go back and say they have been settled.  The problem is the collection companies only send a generic letter to say paid/settled but they don’t show full amount. The full payment  letter comes weeks after from the original debtor to confirm all paid which is too late so now I’m worried I’ve royally messed up?!

Does anybody have any chinks of hope that this might still be ok or have we blown it? Just fyi, credit scores are good because I’ve rebuilt then after defaults had all dropped off. Just worried about these old aip’s now.

please help!

[Deleted User]

There’s actually quite a few lenders out there that don’t even ask for bank statements, did your broker not look at them prior to submitting? I guess it depends how much you are paying and how this affects your affordability for mortgage, if you can’t pay them then you will be looking at a lower offer . 

Twins

Deleted_User said:

There’s actually quite a few lenders out there that don’t even ask for bank statements, did your broker not look at them prior to submitting? I guess it depends how much you are paying and how this affects your affordability for mortgage, if you can’t pay them then you will be looking at a lower offer . 

Hi, we went with a mainstream lender. Our deposit is healthy at £280k but I’m now worrying myself sick about this because I know a lot of lenders are really being super strict and declining a lot of mortgages. I just don’t want this to be the reason why we didn’t get it. Just fyi the amounts paid were £850 & £1500.
thanks for your reply!

ACG

I am not suggesting you go to Natwest, but this happened on an application I submitted to them. I just told them what they were, as I had already put them down as commitments it did not affect affordability. They were fine with it.

It is going to depend on the lender and potentially even the underwriter. My clients did not need to satisfy them. Presumably your broker checked your statements and checked this before applying? That is part of their job. 

K_S

Deleted_User said:

There’s actually quite a few lenders out there that don’t even ask for bank statements, did your broker not look at them prior to submitting? I guess it depends how much you are paying and how this affects your affordability for mortgage, if you can’t pay them then you will be looking at a lower offer . 

@serenity222 I'm sure this isn't what you meant to suggest but whether or not the lender asks for the statement would only be relevant if the broker deliberately left out the monthly-outgoing from the application and picked a specific lender that doesn't ask for bank statements as standard packaging (doesn't mean that it won't be asked later on) to try and hide it from the lender. To put it bluntly, that would be application fraud. 

Otherwise the broker would still be expected to include it in the application form (most lenders will ask for the creditor's name as well, so 'Lowell' for example) and it could still be questioned.

As ACG said above, ideally the broker should have picked this up in their fact-find or when reviewing the bank statement prior to application so that they could run it past the lender (if needed) and factor it in accordingly in the application.

[Deleted User]

@KS I didn’t mean brokers looking at lenders who don’t use banks statement , I meant did the broker not look at the posters bank statements prior to submitting application 

[Deleted User]

@K_S please see the above post 

simon_or

That's how I read it as well, using banks that don't look at bank statements.