An arrangement shows you contacted your lender and agreed a plan to catch up, which is often recorded differently on your credit file and is generally viewed more positively than payments simply going unpaid. It does not remove the fact that you are behind, though, and most new lenders will still want to understand the full picture.
This page looks at how a payment arrangement tends to be recorded, why keeping to it matters, and what usually happens once it ends. If you are behind with no arrangement in place, see currently in arrears. Free and confidential debt advice is available from MoneyHelper, StepChange and National Debtline if you want help managing the arrangement alongside your other bills.
On this page
This page covers
- Credit issue
- Mortgage arrearsUsually stays on your credit file for 6 years from the date recorded.
In short
- A payment arrangement is generally viewed more favourably than unexplained missed payments.
- It is often recorded as an arrangement to pay marker, separate from a standard missed payment.
- Keeping to the arrangement is one of the clearest things you can show a future lender.
- Most mainstream lenders will still want the arrangement finished before considering a new application.
How is a payment arrangement usually recorded?
When you and your lender agree a plan to catch up, such as paying a bit extra each month alongside your usual payment, this is often shown on your credit file as an arrangement to pay, rather than as an unexplained missed payment. It still shows that your account was not fully up to date, but it also shows that you were engaging with your lender rather than avoiding the problem.
Exactly how each lender records this can vary, so it is worth checking your own credit report rather than assuming. Your statutory report is free from Experian, Equifax and TransUnion, and checking it yourself is a soft search that other lenders cannot see.
Why does keeping to the arrangement matter so much?
| What happens | How it is usually viewed |
|---|---|
| You keep to the arrangement until it finishes | Often seen as a positive sign, and a clean record can start to build from there |
| You break the arrangement, then get back on it | May be viewed more cautiously, since it can suggest the plan was not sustainable |
| The arrangement is missed and not restarted | Likely to be treated similarly to ongoing unarranged arrears |
General illustration only. Each lender assesses this in its own way, and there is no single published rule.
If you are finding the arrangement difficult to maintain, tell your lender before you miss a payment on it, not after. It must treat you fairly and may be able to adjust the arrangement rather than let it break down.
Can you apply for a remortgage while the arrangement is still running?
Most mainstream lenders want to see the arrears fully cleared and the arrangement finished before they will consider a standard application, since the account is not yet back to a normal, up-to-date position. A small number of specialist lenders may look at cases while an arrangement is in place, usually where there is significant equity, but this is not common.
If your current deal is ending while you are still on the arrangement, ask your lender directly about a product transfer. It can still decide what it offers someone with an active arrangement, so this is not guaranteed either, but it is usually the first thing worth asking about.
What happens once the arrangement finishes?
Once you have cleared the arrears and the arrangement ends, your file starts to show ordinary, on-time payments again, alongside the earlier record of the arrangement. That earlier record does not disappear straight away. See cleared mortgage arrears for how that period is likely to be viewed as time passes.
Hold on to the letter or agreement confirming the arrangement, when it started and when it was due to end. This can help an adviser explain the position clearly if anything on your credit file needs context.
What may affect options while on a payment arrangement
| Factor | Why it matters |
|---|---|
| Whether the arrangement is being kept to | Consistent payments on the arrangement are usually the strongest evidence you can offer. |
| How the arrangement is recorded | An arrangement to pay marker is generally viewed more favourably than an unexplained missed payment. |
| How close the arrangement is to finishing | Being near completion may matter to a lender considering a product transfer. |
| Length of time on the arrangement | A long-running arrangement may raise more questions than a short, resolved one. |
| Loan to value | More equity gives a lender more room, particularly if a specialist case is being considered. |
| Income and affordability | Whether the new payment is affordable alongside the ongoing arrangement payment, if it is still running. |
| Other credit issues | Any other markers from the same period are usually looked at alongside the arrangement. |
These are general points, not lender rules. Each lender sets and changes its own criteria.
Information an adviser may ask for
You don’t need all of this to make an enquiry. It helps to know where to find it, because an adviser is likely to ask about most of it.
- A copy of the arrangement letter or agreement from your lender
- Recent mortgage statements showing payments under the arrangement
- How much longer the arrangement is due to run
- Proof of your current income and outgoings
- An estimate of your property’s value
Frequently asked questions
Is a payment arrangement better for my credit file than missed payments?
It is generally viewed more positively, since it shows you engaged with your lender and agreed a plan. It is still likely to appear on your credit file, and lenders will usually ask about it.
Can I remortgage while still on an arrangement?
Most mainstream lenders prefer the arrangement to be finished first. A small number of specialist lenders may consider it while an arrangement is running, usually where there is meaningful equity.
What if I need to change the arrangement?
Speak to your lender as soon as you think a payment might be missed. It must treat you fairly and may be able to adjust the arrangement rather than let it break down, which is generally a better outcome for your credit file.
Will a product transfer be affected by being on an arrangement?
It can be, since your lender can decide what it offers someone with an active arrangement, but it is still usually worth asking, particularly if you are not looking to borrow more.