Can I get a mortgage??

snoopylove

Hi. Some advice needed please?? Thinking about selling house to pay off credit cards or they'll be with us forever. Is it best to sell house, rent for a while so credit score improves - some missed payments but up to date within a month - or is there a lender out there who will lend for a new mortgage pending sale/repayment of old debts? Joint income in xs £44000, need mortgage of about £140k. No CCJs.

dimbo61

Buying and selling a house costs money which you dont have hence the CC debts!
Now if you have lots of equity in your home and want to trade down to a smaller place with littlke or no mortgage and use the equity to pay off the cc debts that might work.
We dont know your debts, equity in house, or how cheap to rent in your area!

camper_1982

It would be hard to get a mortgage for that amount if you have been missing payments on your credit cards. Lenders may ignore the odd one as a mistake, but if its happening reguarly they will question your abilty to be able to repay a mortgage.

dimbo61

Have a look on the debt free board to see if they can help and Good luck

snoopylove

Thanks for replies. Fair amount of equity in house, but would need most of it to pay debts, leaving very small amount for deposit. Renting cost about £700 pm, same as current mtge. Do missed payments show in a credit score/file, does anyone know?

camper_1982

Yes missed payments will show on your credit report. It will show them all unfortunately.
The lender may not have updated if you were a good payer and it was the first one, but if its a regualr occurance they would most certainly be damaging your credit file.

Can you not set up a dd to pay the minimum so you dont get the marks on your file, then pay a little bit over another way to bring them down?

snoopylove

What is the best way to check my credit score/file, and does this count as a search? It's bad enough as it is; don't want to make it worse!

ginvzt

Is this thread a joke? Yes, of course missed payments come in your credit file. If you can't spare any money to save, once you sell your house how are you going to build up deposit? Since your rent would potentially be the same as the mortgage, there is no saving to be made there. Plus, you would need money to be able to sell the house and then to buy (all the fees, stamp duty, etc.) - yes, you can take this out of the equity, but if all this is to be funded by equity, and your debts, don't see how is it going to work out for you!

camper_1982

snoopylove wrote: »

What is the best way to check my credit score/file, and does this count as a search? It's bad enough as it is; don't want to make it worse!

You can buy it online at exquifax, or experian. They will tell you your score, or cheaper you can write to them with 2 pounds i think and they send it in the post.

Easier and quicker to access online though.

snoopylove

No, ginvzt, not a joke. Payments have only been missed by a couple of weeks max, wasn't sure if they were recorded that quickly, hence my question. If house sold and debts repaid we won't be paying £1200 plus in credit cards payments each month will be able to save money over a period of say six months, so will be in a better position to buy somewhere.

ginvzt

snoopylove wrote: »

...we won't be paying £1200 plus in credit cards payments each month

How much did you run up on your credit cards???:eek: How much do you think you would get for the house?