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Your home may be repossessed if you do not keep up repayments on your mortgage. Think carefully before securing other debts against your home. Borrowing over a longer term can mean paying back more in total.
An arrangement to pay marker shows that a creditor agreed a revised or reduced payment plan with you, rather than you simply missing payments with no agreement in place. It’s still visible on your credit file to any lender who checks it, but many lenders view an agreed, managed arrangement differently to an unresolved missed payment or a default.
How an arrangement to pay marker happens
If you’re struggling to keep up with a payment, contacting the creditor before you fall behind, or as soon as you do, can lead to an agreed change: a reduced monthly payment, a temporary payment holiday, or a longer repayment term. Where this is formally agreed, the creditor typically records an arrangement to pay marker on that account rather than, or sometimes alongside, ordinary missed payment markers. It’s a record that says, in effect, “this account isn’t being repaid as originally agreed, but a new plan is in place and being followed.”
Arrangement to pay versus default versus missed payment
| Marker | What it shows | How it usually arises |
|---|---|---|
| Missed payment | A specific payment wasn’t made on time | No agreement in place; payment simply wasn’t made |
| Arrangement to pay | A revised payment plan has been agreed and is being followed | Creditor and borrower agree a new arrangement, often after contact was made early |
| Default | The account is treated as broken down | Typically after around 3 to 6 months of continued arrears |
An arrangement to pay marker and a default aren’t the same thing, and having one doesn’t automatically lead to the other. In fact, agreeing an arrangement early, before arrears build up to the point a lender considers defaulting the account, can sometimes avoid a default being registered at all, although this depends on the individual creditor’s own policies.
Debt management plans and arrangement to pay markers
A debt management plan (DMP) is an informal arrangement, usually set up with the help of a debt charity, to repay multiple debts at reduced monthly amounts based on what you can afford. A DMP itself isn’t recorded as a public record on your credit file. However, each individual creditor included in the plan may record its own marker against that specific account, commonly an arrangement to pay marker reflecting the reduced payments, though a missed payment or even a default is also possible depending on how the account was handled and whether the creditor agreed to the reduced payments. If you’re considering or already in a DMP, our page on remortgaging with a debt management plan explains how this is likely to be viewed by lenders.
Checking exactly what’s recorded against you
Because an arrangement to pay marker, a missed payment and a default can all appear on the same account at different points, the only reliable way to know your actual position is to look at your own credit report from each of the three main agencies. Our guide on checking your credit report for free explains how to do this and what to look for, and the credit file date calculator can help work out when a specific entry is due to drop off once you know the date it was recorded.
How long does the marker stay on file?
In line with how other adverse information is treated under UK credit reference agency practice, an arrangement to pay marker is generally expected to stay on file for around 6 years from when it was recorded. Because an account can carry more than one type of marker over time, for example a missed payment early on, followed later by an arrangement to pay once contact was made, it’s worth checking your actual report for the specific dates recorded against that account, rather than assuming a single timeline for the whole history.
Why lenders may view this differently to an unresolved default
Many lenders view a well-managed arrangement, one that was agreed and then kept to, more favourably than an account with the same underlying arrears but no agreement in place. It demonstrates that the debt was acknowledged and actively managed rather than ignored. That said, this isn’t a fixed rule across the industry, and some lenders may still treat any arrangement to pay marker as a sign of past financial difficulty that affects their decision, particularly if it’s recent or if there are several across different accounts.
What this means if you’re remortgaging with adverse credit
If you have one or more arrangement to pay markers on your file, it’s worth being upfront about them with a specialist adviser, rather than hoping they won’t come up, since the lender will see them during underwriting regardless. Explaining that a marker reflects a resolved, followed arrangement, rather than an unresolved problem, can help a lender or adviser assess your situation more accurately. Checking how long missed payments stay on your credit file and getting your free credit report from all three agencies before you apply means you’ll know exactly what’s recorded and can discuss it with confidence.
If you’re still in the middle of a debt management plan or similar arrangement, remember that rolling other debts into a remortgage turns previously unsecured debt into debt secured against your home, and a longer mortgage term can mean paying more overall, so this needs careful, regulated advice rather than being treated as a quick fix. Free, independent guidance is available from MoneyHelper, StepChange and National Debtline if you’d like to talk through your options before approaching a lender.
Frequently asked questions
Is an arrangement to pay marker the same as a default?
No. An arrangement to pay marker shows a creditor agreed a revised or reduced payment plan with you, whereas a default means the lender has treated the whole account as broken down. The two can appear on the same account over time, but they're recorded and viewed differently by most lenders.
Does an arrangement to pay marker stay on my file for 6 years?
Generally, yes, in line with how other adverse information is treated, though the exact timing runs from when it was recorded and is separate from any earlier missed payments or later default on the same account. Check the date on your own report rather than assuming, since accounts can carry more than one marker.
Will a debt management plan itself show on my credit file?
A DMP itself isn't a public record, but the individual creditors involved may record arrangement to pay markers, missed payments or defaults against each account, depending on how the account was actually managed during the plan. Check each account on your credit report individually, since the picture can vary between creditors within the same plan.
Does an arrangement to pay marker stop a mortgage application?
It doesn't automatically rule you out, but it is visible to a lender assessing your file. Some lenders take a more flexible view of a resolved arrangement, particularly an older one, than others. A specialist adviser can help identify lenders more likely to consider your specific circumstances.