What counts as "bad credit" these days?

window_shopper_2

Hi everyone, am after some advice please. I am looking to potentially buy a house later this year, but have some concerns about whether I will be able to get a "mainstream" mortgage (and whether there are even any non mainstream ones out there any more!).

My credit report is completely "clean" up until 2.5 years ago. It's also completely clean for the last 2 years. However, in the intervening 6 months I have 5 (non consecutive) late payments on a couple of credit cards. This is my own fault I know, but I was going through a very unhappy time personally and just let things like opening the post slip! Ironically I could have afforded to pay the bills, just didn't get around to it - am kicking myself for this now.

I still have 3 credit cards but all have zero balances, no loans or anything (just a mobile phone which is paid by DD on time every month), am on the electoral register, been at my current address nearly 3 years. I have around £75k to put down as a deposit, and will probably be looking at properties around the £200-250k mark (this would mean borrowing less than 3 times income).

I suppose what I'm asking is, what do you think my chances are of getting a mortgage at a competitive rate? If they're not good, then how long would I have to wait before these late payments don't affect how a lender views me anymore?

Sorry for the long post, and thanks in advance for any advice

happybroker

I have a feeling you should be ok! Some lenders will possibly turn their nose up but at that loan to value there are plenty that will help. Congratulations on the deposit and good luck with it.

Take some quality advice before you start shopping around by the way....needless searches can and will affect your score card.

luckyfool

I would second that. With a 25% deposit I would imagine a high street lender would be achievable. Have a word with your own bank, and a good broker. What you should not be doing is wandering up and down the highstreet getting credit searches done right left and centre if you get a no from your own bank. That is only likely to ensure that nobody would touch you with a bargepole.

window_shopper_2

Thank you both for the quick replies, I'm feeling a little more relaxed now!