Upgrading mortgage but have Poor credit history

Irish_Pat

Hi all,

Apologies if this has been brought up before but I can't fid anything similar so here we are!

My wife and I have a joint mortgage and are looking at moving to a bigger house as our family is growing.

Back in my student days I racked up some debts but for some reason they didn't affect my application for my first mortgage. ! looked at my credit file a couple of years ago and after that I've been receiving the letters from debt collectors looking for payments (I've not acknowledged these).

The plan is to stay with our existing provider and look for an extra 70k (my salary has doubled and the wife has had a considerable jump since our first application) - we can afford the payments but our worry is that the marks on my credit file will affect our chances.

I'd really appreciate your input on this - the majority of the debt will be at least 5 years old, maybe 6 by the time it comes to applying. I'm not sure how best to sort the problem before we put our application in as admission of the debt/paying it off will certainly hamper the chances of approval won't it?

Thanks in advance,

Pat

kingstreet

Obtain up to date copies of all three of your credit files so you can see what you're up against. Waiting until the adverse credit drops off your record after six years would be helpful.

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

Dave_Ham

Hi Pat,

Firstly, from your username is the property in England/Wales?

Secondly, what sort of deposit will you have on the new place and what indicative purchase price.

It is essential you obtain your Experian, Equifax and Call Credit reports - the world is a different place to when you first got the mortgage.

All the best

kingstreet

Pat - did you set up on your own? (posts from 03/12).

Are you still an employee, employed with self-employed income on top, or totally self-employed?

Irish_Pat

@ Dave - The property is in England
Regarding a deposit, We hope from the sale of our house to get about 20k on a 220k house - when speaking with the Nationwide our providers they said the mortgage would split so that we pay 2 different rates (1 would be for our current which is £132 and the rest 70k at a new fixed rate)

@kingstreet I'm just an employee but regarding additional income I'm considering setting a limited company for a different line of work but there's not going to be much revenue coming in there for a while

Thanks for responses everyone.

Pat