Mortgage application - outstanding debt

vicshippers

I am looking into a shared ownership mortgage for £92000 (after my £10k deposit), which is exactly 4 x my salary (I get £5k in bonus every year but thought it best not to include this just in case).

I did a credit check with Experian and it seems that I have an outstanding debt, which I can only think must date back from when I was a student and went into an overdraft by <£10 and has escalated without me knowing (I moved house and so have never had any communication about the debt whatsoever).

I have been on the electoral roll at my current address for the last 2 years and no outstanding credit cards or loans..

Will this mysterious outstanding debt stop me getting a mortgage?

(I have been refused credit cards - last time I tried for one was 4 years ago though and I thought I failed because I put down incorrect previous address details).

Any help would be greatly appreciated, sorry for sounding so confusing!

vicshippers

Anyone? I really really need another opinion here

beecher

There's little point in anyone giving their opinion, as ultimately it is up to the lender. With such a small deposit, and a relatively high salary ratio, I'd have thought it might cause a problem, but it really depends on the lender. Go to a broker who will know best - isn't it the case that only certain lenders deal with shared ownership mortgages?

DVardysShadow

vicshippers wrote: »

I did a credit check with Experian and it seems that I have an outstanding debt, which I can only think must date back from when I was a student and went into an overdraft by <£10 and has escalated without me knowing (I moved house and so have never had any communication about the debt whatsoever).

I have been on the electoral roll at my current address for the last 2 years and no outstanding credit cards or loans..

Will this mysterious outstanding debt stop me getting a mortgage?

You can be as vague as you like with us, but you are in difficulties if you are vague with yourself. There will be enough detail on the Experian records to say where this comes from. You either need to pay it off and get it wiped as part of the settlement or wait 6 years for it to go away.

vicshippers

I'm really not trying to be mysterious or vague - it only shows the company name and the date of the check on the credit report (and so that's all the information I have).

Thanks for your help, I didn't know if these kinds of things would have an impact generally obviously. I'll contact a broker and see what they think...my earnings ratio is high - but that doesn't take into account my partners earnings, so actually our household income is double that.

castle96

contact the company/ref No and deal with it. get a 'letter of payment/satisfaction'
add a note to your credit file re this item (max 200 words I believe)