help with credit rating/future mortgage...

alow87

at the moment i'm a poor student, and being the ignorant person i am, i've racked up a load of debt and defaults etcetc and my credit rating is actually terrible to the degree even the provident turn me down for money...

now, i won't actually be qualified for another 3 years but when i graduate i'll be a teacher, so fairly well paid and hopefully be in a position to begin getting on the property ladder. my grandparents have put aside money to help me with a deposit for a house at some point but now i am absolutely petrified that i'm never going to be able to get a mortgage! i know i'm not looking for one at the moment but i was wondering what i can do to improve my credit rating for the future, best to start now?

MortgageMamma

Hi Alow87

Good you are thinking of the future now, didnt think students did that I was one once. First things first to improve your credit rating

1. Keep all credit commitments paid in full and on time from now on
2. Avoid being credit checked unecessarily
3. Stay within your overdraft limit#
4. Once the defaults are over 3 years old SOME lenders don't tke them into account but they always look better if they are paid off.
5. Clear all debts as quickly as possible - you need to optimise your position for taking the mortgage, the more you owe or appear to owe the less you can borrow
6.When you look for your first home, see a broker first, get them to give you a realistic amount that you would be comfortable borrowing based on monthly payments and explain all options to you. When you find a house let the broker make the offer for you (it DOES make a difference believe me, estate agents dont mess about with brokers) and obtain an agreement in principle

Good luck, keep focused and you will get there in the end.

MortgageMamma