FTB Joint Advice

iansaunderson

Hi

Myself and partner are looking in the next month or so at applying for a joint mortgage. The houses we're looking at are around the 100k mark and we have 15k deposit. (15%)

Currently, I have a credit card / store card with no balances apart from the odd £100 which is paid off at statement dates. I have a loan with around 5k left on it. The partner has a credit card / store card, similar to me, no balances but the odd £100 which is paid off.

I'm due some inheritence shortly and am strongly considering paying off the loan to help with the affordability but this could affect my credit rating.

The only downside to our credit etc is throughout Uni I had high balances on cards but never missed payments. I have been out of uni for 4 years and have probably been below 25% of card limits for the past 18 months.

I have since missed one payment in September 2011 which was due to a family bereavement and has settled immediately I realised.

We earn 41k between us so only really looking for double our salary. Does anyone see issues with our credit etc?

Thanks

iansaunderson

Hi guys
Any advice?

Thanks

ACG

Should be fine with the majority of lenders.

I would probably avoid hsbc and first direct but bar that i dont think you should have too many issues.

iansaunderson

Thank you ACG. I'm nervous about my credit rating as its only 500 which still falls in the Excellent category of Equifax but still not that great.

ACG

Thats equifax' credit score.
Its not a lenders credit score, they all have their own algorithm to work it out so dont worry about that.

iansaunderson

Thank you. Do you think it would be best to pay off my loan to reduce my payments or keep the 5k for 5% extra deposit?