Credit Rating

racheyg

Just sold house, which will clear debt. We have an excellent credit rating (ie, have paid everything on time), although of course debt was on our records (no ccjs etc). If we go for a mortgage (renting first), will our past debt history be taken into account - say, 12 months down the line? Or is this information not accessible to lenders? Debt was made up of couple of loans and then finding money to pay my ex his half of equity of house, which was put on credit cards (!!!!), when we bought him out.

nrsql

You don't say what the debt is.
Were there any late paymemts?
If not then the debt will probably improve your credit-worthiness.
Lenders like to see debt being services resposibly rather than not ever having debt which gives them no indication of how you would handle it.

Yes the debt info will probably be available via a credit search.

racheyg

£65,000 debt. Equity in house £95,000, giving us £30,000 left over. No late payments at all.

Would this debt go against us in a mortgage, even though interest was paid on time and it has all been cleared?

nrsql

Wouldn't have thought so. Sounds like it would be a positive.
You took on affordable debt and serviced it responsibly - a good credit risk.

Batchy

racheyg wrote: »

£65,000 debt. Equity in house £95,000, giving us £30,000 left over. No late payments at all.

Would this debt go against us in a mortgage, even though interest was paid on time and it has all been cleared?

are you saying house is worth 95k but have debt of 65k giving equity in house of 30k...?

:-):T

racheyg

House was on market for £360,000, have accepted £330,000, which give £95,000 left after paying back the mortgage loan. Debt is £65,000. So yes, we have £30,000 equity.