Will I get one?

gambledandlost

Hi folks, I am thinking of moving in the next year due to family commitments, I shared the mortgage with my Aunt who recently died and there is just £10k outstanding. I am thinking of buying a house meaning I would need to borrow 50k but I will have £100,000 cash from this house.
The problem is that over the last few years I racked up £30k in credit card debt and in the middle of last year missed 3 months payments meaning I had a notice of defult, but was able to pay all but £5K off in December.

I have set up a DD to make sure I pay more than the minimum repayment on the card and plan to have cleared it in 5 years but was worried about my chances of getting a mortgage - should I even bother? Also if I went and spoke to an advisor with my current mortgage compay, would this show on my credit report?

choclover

Hi there, a default will definitely be on your credit file and it stays on there for 6 years after you've closed the account. It may mean that the better mortgages (with lower interest rates) that are out there will not be open to you, but I think you'll still be able to get a mortgage - a mortgage advisor will be able to tell you for certain.

If you went to your current mortgage company they may check your credit file or they may just go off your history of payments with them to make a decision, but really you'd be best speaking to them to see if they would give you a mortgage and if so, how much would they give you.

Thrugelmir

Why is it going to take another 5 years to clear your debts? Use the money from the estate to sort your finances out.

gambledandlost

Thrugelmir wrote: »

Why is it going to take another 5 years to clear your debts? Use the money from the estate to sort your finances out.

Because the credit card is interest free - I dont want to add more money than I have to on to the mortage incase the interest rates rise.

jaysb

gambledandlost wrote: »

Because the credit card is interest free - I dont want to add more money than I have to on to the mortage incase the interest rates rise.

interest free for five years ?

I think you're just going to have to try and see if you can get any mortgage offers and what rates they will offer you

I guess the advice above - such a clearing you CC with the proceeds from the house sale seems right, and may also mean you will need a bigger mortgage or look at lower priced property - but why not ask the same lenders what they would offer you if you cleared the CC debt, as they may offer you both a better rate and also be willing to lend the amount you are looking for, as they may see you as less of a risk, in that you have sorted out your finances before racking up more debt

gambledandlost

Asked myself today if I really need to move and if I can really afford to move. The answer to both was no. The whole idea of joining this site was to save money and pay off my debts - upping sticks aint going to help. Back to the world of reality (and me dingy hole) I go!

redpete

gambledandlost wrote: »

Because the credit card is interest free - I dont want to add more money than I have to on to the mortage incase the interest rates rise.

Mortgage rates would have to go up an incredible amount to get anywhere close to CC rates (apart from during your 0% period).

Thrugelmir

gambledandlost wrote: »

Because the credit card is interest free - I dont want to add more money than I have to on to the mortage incase the interest rates rise.

Whatever your intentions. With a poor credit record it may not be seen that way.

jaysb

gambledandlost wrote: »

Asked myself today if I really need to move and if I can really afford to move. The answer to both was no. The whole idea of joining this site was to save money and pay off my debts - upping sticks aint going to help. Back to the world of reality (and me dingy hole) I go!

maybe a lick of paint in the spring will help - good luck