Join Today
Results 1 to 4 of 4
  1. #1

    Bad credit advice for mortgage application

    First up sorry if this is the wrong place to post this - if it is if someone could point me in the right direction that would be great.

    Bit of background - around 3(ish) years ago I got into a spot of bother with my finances. I had a number of payday loans and was on a lowish income (16k pa) unfortunately my youngest got ill and I went into head in the sand mode and completely ignored everything, making payments being one of the aforementioned ignored things.

    So as a result of that I now have 3 defaults registered against me;

    - 163 default registered March '16 from lending stream
    - 828 default registered March '16 from lending stream
    - 195 default registered March '15 from Capital One.

    I settled the Capital One default in Jan 16, but the lending stream ones haven't been settled yet as I only found out about them when I checked my credit report recently. I have already entered into dialogue with Lending stream to see whether they would consider removing the defaults after I pay off the amount in full (they have thus far declined although have accepted that one of the previous loans they had given me was not right and have agreed to remove that from my file and take off the amount I paid from the amount I owe them).

  2. #2
    Don't get a joint account, your credit history would definitely drag down your partner's.

    If you want to buy in the next 2-3 years then hopefully the Cap One default would have dropped off leaving you with 2 defaults that would be 4-5 years old. There are lenders out there who would offer you a mortgage but bear in mind a) you'll need a larger than normal deposit and b) the rates won't be the best, but it's achievable. Speak to a broker closer to the time. If you want to be in the best position possible then yes, wait until all the defaults have been removed from your files.

    The free versions to check your credit files are below:
    Call Credit:

    Ignore the credit scores given by the agencies, it is your credit history that matters. Keep saving, make sure all your info is up to date and correct across all 3 CRAs and keep it that way until you are ready to buy a house. Good luck!

  3. #3
    That's top advice from CandyApple. The only thing I would add : you say "I have a credit card that has a limit of 2500 and there is about 1000 on it (I always pay at least 500 of per month)". Ideally you need to be aiming to pay it in full every month, never carry a balance. Clearing in full every month will reflect positively on your credit history. It may only make a small difference, but every little helps, as the saying goes. It'll also save you a few quid in interest every month ( remember that unless you pay the balance off in full, you'll be charged interest on the whole amount, not just the amount that remains after you've made a partial payment ).

  4. #4
    You should go and see a broker, see 2 or 3 if you like.


Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts