Credit Rating and Mortgages

crabcakesfordinneragain

Hi,

I'm saving a deposit with my partner. It's a long haul, but depending on what mortgages and properties are available we may be able to "jump" this time next year.
However, I'm concerned about my credit rating, especially as we will have a high LTV. My partner has never missed a payment, and has an "excellent" score across all three agencies. All but one of my accounts has a perfect record - no payments missed etc however, I have four missed payments dating back to 2004 (student, loan arrived VERY late) and one relating to 15 months ago when I tried to cancel a phone at the same time as we moved house. I don't think these have registered as "defaults" just as 1/2 months in arrears. However, because the mobile contract has now been settled, I have heard that ALL of these will stay on my report for another five years! (yes, I am an idiot)

Does anyone know if this is true? And if so, would a statement, or notice of correction support any application I made, or given that all will be a long time ago, and the rest of my report will be fine, will it present a problem at all? My current credit rating is "good" across all three agencies and (i know there scores don't really matter) early 900s experian, 430 equifax.

Help greatly appreciated - I need all the motivation I can to keep saving away!

thanks

Bermuda_John

900 is no problem

i have 930 and i vodafone payment 2 months late from 2006 and i got a mortgage no problem and i wasnt on the electoral role

although C&G are very strict

worried,hard-working

Hi folks
I am desperately worried about my chances of remortgaging in January when my current deal ends. I have v little(if any) equity in my home and a default on my credit history. I am in a stable job with the council and earning enough to borrow the remortgage amount. Would be grateful for any tips or suggestions.

_Andy_

If you have no equity you will need to stay with your current lender.

Treadmill

My credit rating according to Experian was 530 and I got a mortgage.

Pammy

The score is not imporant at all. All lenders have their own criteria and its how you manage your credit thats important.

I really wouldnt worry about 2 late payments on a phone bill. The issues are defaults and when they were settled.

Bunny_Mad

Hello.
I will try to answer individually & hope it helps.

crabcakesfordinneragain
Hello.
I think the information is listed with the Credit Reference agencys for 6 years.

Late payments should not have any great impact on your score & as pammy said.....scores arent always important.

If you really are worried, there are a couple of things that you can do....

Do you know if the mobile phone problem which was cleared in full, has been noted as satisfied. If not..ask the mobile phone company to do that for you & ask for a letter too. So that you have it handy in a file to show any creditors if they have any queries about it.
Where I work, mobile phones dont hold much 'clout' so far as repayments are concerned.
You could add a note to the listings with the credit ref agencys, but as most 'scoring' is carried out by computers, it wont make much difference as computers cant read notes!

Personally I wouuld rather have the proof in my hands, to be able to hand over at a minutes notice to settle any worries as they arise.

Good Luck.

worried,hard-working

Hello.

I agree with _ANDY_ , I really dont think that you will be able to move lenders if you have no equity. I dont even think there are any 100% mortgages available anymore. Even 90% are thin on the ground & carry high fees.

However I would be inclined to complete an Income & Expenditure form to workout what you could afford to pay each month on a new mortgage. Then when you remortgage you will know if you need the option of making over payments (to reduce the capital quicker & therefore reduce the inerest you pay). Overpayments do not have to be made every month. They can be optional for when you are 'flush'. Its always good to have the option.

There is no use worrying at the moment as the market is all over the place. However it may be worth asking your current provider for a quote in Nov/Dec (depending on the date your mortgage ends) to see what they have on offer (if you like what you see....its availble for 30 days). As some products may disappear in the New Year. At lest you have the option of the one you got a quote on in dec, or the New 2010 products.

I hope this is helpful.
Try not to worry, nothing can be done until the end of the year.
Good Luck.

I hope everything works out for you.