How long to Repair the Damage???

iwantasmallholding

Hi All

12 months ago I started on the MASSIVE cut back, as you can see from my signature I have cleared more than 7k of my total debts. I have also moved house from a house bought for 200k to a house bought for 240k with no increase in my mortgage (180k). So things are on the up, the problem is that because I am on such a strict budget to reduce all of my debts I have on occations missed payments (ie not enough cleared funds as I did not cater of an interest payment etc) but all have been paid or I have agreed with the the credit providers a 3 month payment plan which I always stick to.

The BIG QUESTION is how long do I need to keep a completely clear credit file to be eligiable for a main streem mortgage. (No IVA's not been bancrupt) I am interests only at the moment and am worried that when the interest rates go up I will be screwed, but I also want a competative rate. How do I rebuild my credit file now????

Your thoughts on timescales and credit file boosting tips please.

Thanks

Nick

Burlesque_Babe

all lenders will have their own acceptance criteria so there's no blanket answer. Not having a bankruptcy, IVA, CCJs or defaults on your file will put you in the best position for a high st mortgage. After that, it's a case of how much of a risk they believe you are for the amount of debt you have versus your income.

The best advice really is to pay on time each month (the odd missed payment won't be a deal breaker) and to overpay where you can so your debt versus income looks as favourable as possible when you apply. If you have any accounts (credit cards, catalogues etc) with a nil balance, write and close them otherwise it will look as if you have credit that you could use which won't help.