Advice Needed

DAT9

Hello

I have posted this on a couple of other forums but i have been advised i mya get more of a reply here -

I am sure probably somewhere this question or something similar may of been asked / answered but i hope somebody could help me clarify things. Around 18months ago i got myself into a right mess through a business deal, i ended up owing around £50000 ( fifty thousand ) and ended going to Payplan who i am currently on a debt repayment thing. However it looks like i will be in a position in the next few months to pay off the whole debt, now around £45000 in one go through a family windfall. I will have a few thousand left over to put in savings, etc, but i would also like to look at buying a house, This is where my question is - How long does bad debt affect you when applying for mortgages etc once you have cleared the debt ? I have read a couple of things saying 6 years but surely i won't have to wait 6 years to get a mortgage once i have paid the debt will i ? I am now starting to get serious with my partner, she has a excellent credit record, i would hate to be the one who ruined any mortgage applications for us both, she does not earn a great deal though so a single mortgage isn't an option, and i also wouldn't want that, ideally i would like her to know nothing about my financial mess in the past, i am not a bad person, never been involved in any crime, etc but once you say you have had £50k worth of debt people think the worse, it is something i would like to pay off and forget about but i am not sure if this is possible. Any help or advice would be really appreciated.

Barney088

The best answer is it depends. Bad credit is deleted after 6/7 years from your credit record. However you can find a lender that will help you. There will be a premium on the rate but exactly who will help and what the mortgage rate is will depend on your circumstances.

However, the best advice I could give you is find a broker who is whole of market and will not charge you a fee. Brokers who you'll see in the yellow pages (check and see) will charge you between 1 and 3% but will promise you "a mortgage whatever your circumstances" These brokers are not interested in helping you, in reality that only see you as a cash cow. "Bad Credit" mortgages pay very well in terms of commissions etc and there is a perception that people with "bad credit" are desparate, and likely to pay the fee.

My Yellow pages has tonnes of adverts with fee discalimers "no more than £3000" "usuall 2% minimum of £2395" "broker fees of between 1 and 3%".

You do NOT need to pay these fees just because you have some adver credit. Honest, ethical brokers exisit in all towns of the UK. Ask around for some professional help.

It would help them (the broker) if you could tell them exactly what was on your credit report. Experian will be able to show you the way here.

Good luck

HelpWhereIcan

As Barney says, will all depend on exactly what shows on your credit file - was a default registered or just missed payments.

If there is a way to link the bad debt to a business rather than just you as an individual, it may be that a good broker will be able to get a lender to look at your application on a case by case basis.

Get the debt satisfied (always looks better to a lender when showing as satisfied). Get a copy of your credit file and then follow Barney's and Martin's advice re finding a good broker to deal with.

You may find that the best thing is to buy in your partner's name only, or to delay for a year, a combination of both or all may be cushti. A good adviser will be able to give you all the options. Plus you'll always be able to get any advice you receive checked out by the knowledgeable MSE membership.

Hope this helps