Question re. credit for my partner and me and mortgages etc...

surflou

Hey all!

Ok, so, I have a few questions about credit, bad credit, new credit etc... I'll try to make sense of it all as I go along!

1. ME - In the past I managed to run up a nice long list of debt, I can't remember how much exactly, but about £10-15,000, most of it was either paid of or written off as I moved abroad for 10 years and on my return to the UK, when hit with letters from the companies in question about the debt, I was advised by you guys to send letters cancelling out the debt. SO, I now have no real debts, I have 2 credit cards but keep them paid each month, and I have the regular bills etc, no debt collectors at my door or anything like that and I have no real outstanding debt. My question is this, will my credit score have changed at all from nothing at all to a fair figure? I have tried to get credit a couple of times and have been refused but I thought this may be due to the fact that when we returned to the UK I was in one address for a year, and I have been at my current address for just over a year now (we needed the first address until we got into this place). Can anyone advise me therefore on how long it might be until my credit is acceptable again, or ways that I may be able to get it up again to an acceptable level.

2. My partner (we are married) came back from Ireland with me, she is Irish and had never lived over here until mid 2009 when we moved back. She obviously had low-no credit over here but managed to get herself a phone contract which is now cancelled, and a bank account with a small overdraft. She did try to get a credit card through our bank (Natwest) today but was declined, but I think this is because she occasionally tips over her overdraft slightly. She works pretty much full time, has a reasonable wage and would like her credit to go up, what are good ways for her to do this?

3. My last question... My mother in law is now thinking of moving over to the UK from Ireland as we can take care of her while she is living nearby. Originally she wanted to sell the house she was in and give us £80,000 towards a deposit for a house, we would get a mortgage and she would live in an annex out back. Then it changed and she was goign to buy the house outright, same arrangement, but instead of paying a mortgage, we would give her £500 a month. THEN it changed again, so now she is planning on selling her house, giving us £60,000 for a deposit and buying a small house outright for herself (the house prices where we live are very reasonable at the moment and we can easily get a 3 bed for £100,000). My question here is, how likely is it that my partner and myself will be able to get a mortgage with a £60,000 deposit? We only want to pay about £100,000-120,000 for a house. My partner works almost full time as I said and I am self employed but at the moment, am not earning enought to hit above the tax paying bracket... though I may hit it this year.

We know NOTHING about house buying, mortgages, credit ratings etc and really need some good advice on where to start on any of the questions we have... If you need to ask me anything then ask, PM me if its a private sort of a message!

Thanks in advance!

surflou

Posted this thread days ago, noone able to help or offer advice?

Tixy

Hi

1 - what credit cards do you have - are they regular cards or subprime cards? Are you on the electoral roll? Have you looked at a copy of your credit report at all (not the score thats worthless) but the statutory credit report.

2 - Stop breaking her overdraft limit, preferably don't use the overdraft at all (or only occasionally not every month) and then probably a sub-prime card, use and pay in full the following month.

3 - Probably limited chance at the moment from what you've posted - but you haven't said enough about your earnings etc to be able to advise.

surflou

1. I have 2 cards both from my banks, one with Natwest and one with an Irish Bank. Yep we're on the electoral roll (I think anyway!)...

2. She doesn't do it on purpose, this month it was a direct debit, they were only supposed to take £8.50 and they took £23.00, she complained and told the bank and they took back the direct debit, but usually she tries to be careful, we only use her account for bills really.

3. Earnings are good - we also get tax credits every week, we afford to pay £450 in rent each month and about the same in bills with no problems and money left over for food, car, spends etc... When we apply for the mortgage, it will be in 2-3 years time and we will have £60,000 deposit ready, if not more, will that help?

mrsb83_2

Honestly, to receive helpful advice about the mortgage, you'll need to reveal a bit more about your earnings.

surflou

Well my partner is on roughly £850 a month but it changes dependingon what shifts she gets and I earn on average £300 a week and additional money from larger jobs, so evened out I make about £1600 a month but am self employed.