Need advice, dont have much on my credit file

theoneandonly2010

Hey everyone,

Im thinking about trying to get a mortgage and been doing some checks with the free credit report agency's which dont show up much in my report.

About 10years ago maybe a bit more i got into a lot of dept, to cut a long story short i ended up defaulting on all my cards and loans.

I paid everyone back but closed all my accounts including banks accounts as i didnt want to be tempted again, and just used my girlfriends account for wages.

We split up a 2 years ago so i had to have my cheques cashed for me at cheque converters(i know please dont shoot me) A year ago i opened a current account with Lloyd's and 6 months ago i got a capital one credit card & a Barclay card, both have £1000 limit on them.

Recently my circumstances have changed and my new girlfriend is pregnant with twins:eek: big shock but a good one:beer:

So i want to see if its possible to get a mortgage, now i thought with all the bad credit i had there would be no chance but none of this shows on my credit files, in fact theres no reference to it?

Is this normal?

If it is then i take it this is a big help for me in applying, but will the fact i have hardly anything on my credit report be just as bad?

I always hear people say its hard to get credit with no credit

badmoon

Hi there,

Firstly, congratulations with your happy news.

First question to ask is when did the defaults start? As after 6 years they come off so that would explain why they aren't on there any more. Also it can depend on which credit reference agency you go with, some have information on them that others don't.

As regards your current credit etc., are all your payments to the credit cards on time? and is everything in order with your bank account? I'm not sure whether the fact you've been with your bank for 6 months would have any impact but given that you were able to get 2 credit cards and a bank account, i'm sure this can only be a good sign. Others may be able to advise better than me on this.

Perhaps if you speak to a mortgage broker who has access to the whole of the market this should help. It does to me seem fairly positive though and if you've got a decent sized deposit, you could be fine and dandy.

All the best with it and for the future with the twins.

x

theoneandonly2010

Thanks for the reply badmoon & kind words

Iv got £35k as a deposit which half is mine and my dad has given me half to help.

The defaluts were settled about 8 years ago

I thought with only 2 credit cards of which iv had 6 months there wouldnt be enough credit on my file to apply for a mortgage?

badmoon

theoneandonly2010 wrote: »

Thanks for the reply badmoon & kind words

Iv got £35k as a deposit which half is mine and my dad has given me half to help.

The defaluts were settled about 8 years ago

I thought with only 2 credit cards of which iv had 6 months there wouldnt be enough credit on my file to apply for a mortgage?

Given that it was 8 years ago with the defaults, they will be off your file forever now so you can relax about those.

I'm no expert but as long as you've been using at least one of the cards and making payments on time and as required, that should definitely help.

Best to speak to a mortgage broker who'll be able to advise more thoroughly about what's out there.

That's a really great deposit too, not sure if you'd have to mention to banks and building societies that part of the deposit is a gift. Someone else may be able to advise? Anyone?

The final thing to consider is your current salary and the sort of house prices you wish to look at as affordability is another key factor the banks will look at. Most large banks have an affordability calculator you could take a look at on their website and get some idea on there, it takes into account any outstanding balances on your credit cards etc.,.

herbiesjp

You would indeed need to state half of the deposit is a gift, but that should not be a problem with most lenders.

What property prices are you looking at?
What is your gross annual salary?

Not having enough credit can cause problems, but there are lenders who are more sympathetic in these cases.

Who did you have the credit problems with?