Communication and Utility account missed payments are ignored

Within the last 3 months:

• Mortgage: no account to have any arrears
• Unsecured credit: no account to be more than 1 month in arrears
• Revolving credit: no account to be more than 1 month in arrears

Any current arrears must be resolved prior to submission.

Within the last 2 years:

• Mortgage: no account to be more than 1 month in arrears
• Unsecured credit: no account to be more than 1 month in arrears unless the combined monthly payment is £100 or less and for no more than 3 months in arrears

Where any account is over 1 month in arrears, the monthly payments for all unsecured accounts in arrears – including those that are only 1 month overdue – are combined. The total of these combined payments must not exceed £100.

For example:

The customer currently has two loans that are in arrears. The first loan, with a monthly payment of £20, is 2 months overdue. The second loan, with a monthly payment of £90, is 1 month overdue. Together, these loans have a combined monthly payment obligation of £110, which exceeds policy limits and would therefore be considered outside of policy.

• Revolving credit: no account to be more than 1 month in arrears unless the combined utilised balance is £500 or less and for no more than 3 months in arrears

Where any account is more than 1 month in arrears, the utilised balances of all revolving accounts in arrears—including those only 1 month overdue—are combined. The total of these combined balances must not exceed £500.

For example:

The customer currently holds two revolving credit accounts that are in arrears. The first account, a credit card with a utilised balance of £200, is 2 months overdue. The second account, a mail order credit with a utilised balance of £350, is 1 month overdue. Together, these accounts have a combined utilised balance of £550, which exceeds policy limits and would therefore be consider outside of policy.