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First time buyer - bad credit
ldn123
Posts: 10 Forumite
Hello,
After a bit of advice. After being cash dumb at university, I have a pretty shoddy credit rating. Circa £3k credit card debt on a Lloyds TSB credit card - which I wouldn't pay and then they would automatically take the minimum payment from my Lloyds current account. Does this count as a default?
I've grown up a lot and will be debt free (hurrah!) as of the end of August 2012, and by August 2014 should have around £35k saved for a deposit. Do you think my poor credit will impact my ability to get a mortgage in two years? If so should I continue to save for another 4 (6?) years until I have a clean and tidy credit file?
Parents could potentially act as Guarantors but aren't in a position to give me cash towards a deposit.
Any advice gratefully received!
After a bit of advice. After being cash dumb at university, I have a pretty shoddy credit rating. Circa £3k credit card debt on a Lloyds TSB credit card - which I wouldn't pay and then they would automatically take the minimum payment from my Lloyds current account. Does this count as a default?
I've grown up a lot and will be debt free (hurrah!) as of the end of August 2012, and by August 2014 should have around £35k saved for a deposit. Do you think my poor credit will impact my ability to get a mortgage in two years? If so should I continue to save for another 4 (6?) years until I have a clean and tidy credit file?
Parents could potentially act as Guarantors but aren't in a position to give me cash towards a deposit.
Any advice gratefully received!
0
Comments
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Have you checked your credit report that will give you an idea of what if any damage has been done0
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When you start to consider buying a property seriously, order your credit file from all three credit reference agencies. You don't need online membership and avoid paying for daft, meaningless "scores" that bear no relation to real life. The £2 paper versions will do fine.
Equifax
https://www.econsumer.equifax.co.uk/consumer/uk/gb_consumerletter.ehtml
Experian
https://secure.wiseconsumer.uk.experian.com/wiseconsumer/secure_index.html?data=00
CallCredit
https://www.callcredit.co.uk/stat-report-online/index.php?action=register_display&tpl=regPurchase
Make an appointment with a good whole market or independent broker (research the difference between the two before you start) and take the credit files along with you for analysis.
This will give you a good idea of the likely optimum point for making an application.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
It takes 6 years before the last bad mark drops off your file. In the current situation you're not likely to find a lender.0
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You've not mentioned the date of when the black marks went on your credit file.
To be accurate check your credit files from the above agencies.0 -
Lovely, thanks for the advise!0
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