Declined Mortgage Bad Credit

mcyates_2

Well the past 6 years i've been debt ridden as i had too many creidt cards, paid them off with loans and then spent on them again. Also paying 400 quid per month for my car. I never missed any payments but I just didn't have enough money really, i had about 350-400 for the whole month after all the debts were paid off.

I went with PayPlan to reduce the monthly costs and they gave me an extra 200 pound to spend which is great but i've looked at my credit file and I have about 24 defaults on one of my loan accounts and loads of late payments on the other accounts. I know I had a default as I was issued a letter in 2007 when they gave me it.

I'm just wondering how long it will be until my credit score improves experian says its 495/1000 and call credit is 730/1000. I am now totally debt free, paid it all off and my last payments were in April. I now have roughly 1800 to myself but i've tried to get a mortgage today and it declined. The mortgage was for a 115k 2 bedroom house doing a 80/20 split with homebuy direct.

I tried Halifax and RBOS and they both declined so i'm leaving it for a year. I've got a vanquis credit building credit card on, tha limit went up from 250 to 750 and i've just applied for a barclaycard initial credit card which is the same as the vanquis in respect that it builds your credit score up if used correctly and paid off in full each time it is used, each month.

I'm just wondering will my credit file improve over the coming 12 months. The only outgoing I have got is my mobile phone bill which is roughly 40 pound per month and i've never missed any payments with that .

I really wish I had more money sense when i was younger instead of being an idiot and spending it on clothes and beer!!!

poppysarah

How much can you save a month? You need as big a deposit as possible. Save regularly.

mcyates_2

At the moment I can save 1,000 per month possibly more, 1250 max i'd say as i don't have any outgoings!! Im waiting a year, I have 9,000 saved up so will have 20,000 by then, hopefully!!!

poppysarah

Well when you've saved nearly that much see how things go then.

PS: Well done for clearing the debt.

mcyates_2

thanks, yeah it was hard work but i did it

Now i'm addicted to saving money which isn't a bad thing eh

poppysarah

mcyates wrote: »

thanks, yeah it was hard work but i did it

Now i'm addicted to saving money which isn't a bad thing eh

You should be very proud. It's one of the better habits to have!

keith969

poppysarah wrote: »

You should be very proud. It's one of the better habits to have!

Ditto, well done!

mcyates_2

Is it possible to remove defaults from your credit file or not?

beccad

Well done for paying of your debts! You've answered your own question really in that you need to just sit tight for a while and behave impecably with respects to paying off credit.

If you don't have any particular outgoings I would challenge yourself to see how much you can save in the next year!

Bufger

well done so far and good luck for the future! I would just do as everyone else has said and keep your payments up and on time. Only spend the money you have in the bank already and see how much you can save in a year. You may be able to save 20% (make that your challenge?) and then you can get a better rate!

As you know from your debts these things dont happen overnight but it wont stay on your file forever. I think another whole year of being squeeky clean and having loads of savings will sort you out!

mcyates_2

Thanks for the optimistic replies I've applied for the Barclaycard Initial so will be using that to spend on and paying it off in whole with the money in my bank. Just so I can build a better credit history and to let lenders know i can be trusted once more.