Mortgage advice required - please

United762000

In the past when I was younger I was very poor with my money and racked up some debt (about 4k) but since meeting my current partner I have completely turned myself around. I have cleared all my debts and I earn a relatively good wage (£30k per annum) and I have recently just got myself one of those credit cards to improve my credit rating. We would like to get a mortgage in about a year when we have saved some more money but I am worried my poor history will cost us. Are there ways round this? Any advice would be really appreciated

ACG

By debt do you mean a loan or do you mean a loan you never paid and went into arrears/default or CCJ?

If it was just a loan you paid off you will be fine, if not then we need a bit more info about the payment histroy/lack of.

You also dont say how long ago it was but it is possible that there are lenders out there especialy now it has been cleared.

opinions4u

What is your poor history?

Missed payments? CCJs? Bankruptcy?

Need to be more specific.

As for the credit card, use it for purchases (not cash) and pay it off in full each month, every penny.

Make sure you're registered to vote.

Pay all your bills on time.

Save up as big a deposit as possible.

United762000

basically it was when i was about 12 years ago got a couple of credit cards and spent them. i missed payments but no ccj's or court orders. then about 3 years ago my bank a agreed a managed loan to pay it off. i repaid the loan in full last year. will it make a difference withdrawing cash or purchasing on a credit card as long as it is paid back in full each month?

opinions4u

united762000 wrote: »

basically it was when i was about 12 years ago got a couple of credit cards and spent them. i missed payments but no ccj's or court orders. then about 3 years ago my bank a agreed a managed loan to pay it off. i repaid the loan in full last year.

Worth paying £2 for a copy of your credit report to see exactly what, if anything, is showing.

will it make a difference withdrawing cash or purchasing on a credit card as long as it is paid back in full each month?

Most cards will charge you a fee and immediate interest for cash transactions. Stick to purchases. Even if it's just paying for petrol on the card.

Katpin

Withdrawing cash from a credit card is expensive and you normally incur a charge for doing this, unlike purchasing. If I were you I would read the terms of your credit card- it seems as though you have no idea how to handle one of these!

United762000

all i do is usually withdraw £30 a month then pay it back in full every month

ACG

Best to not withdraw cash, you will get charged a "cash handlig fee" and i think interest gets charged from the day you take it out - whereas purchases you get x amount of days interest free. but that wont affect your credit rating, just yoru payiing money for something you dont have to.

It sounds like your credit will be alright but as suggested get a copy of yoru credit file.

United762000

but say for arguments sake mine isn't the best in the world. does anybody know any lenders that lend to people with slightyly damaged credit history or are self cert mortgages still available?

Thrugelmir

Saving regularly will go some way to demonstrating that you have learnt the lesson of your ways. Doing so with a lender you hope to borrow from would be even better.

kingstreet

united762000 wrote: »

but say for arguments sake mine isn't the best in the world. does anybody know any lenders that lend to people with slightyly damaged credit history or are self cert mortgages still available?

Self-certification was a way of obtaining a mortgage without having to provide evidence of income. What you are describing is a "light adverse" or "near prime" mortgage product.

The former is no longer available, the latter is...