New Mortgage Question

cc4rhu

Hi,

I have a hopefully simple question. Next year my last default will drop from my credit file. Which will then show a good file. I have a charging order on my current property of £5 per month, the CCJ dropped off. I owe around £3000 on the charging order.
I have about £20,000 of equity in the house, and would be looking for around about a 85% mortgage.
My big problem is payday loan agreements on my report from 3 years ago. Never missed a payment, but there's about 8 of them there over the year - it was a bad one.

What advice would you give in order for me to improve my chances of a new mortgage on a different property, selling my current home.

Many thanks

Thrugelmir

Why aren't you repaying the debt quicker?

At the rate you are paying it will take 50 years.

No lender will offer you anything with that on the credit file.

cc4rhu

Sorry the above mustn't be clear. It isn't on my credit file anymore as the CCJ was issued in 2006. I was paying around £120 pcm towards this but the creditor wasn't happy. Court set it at £5.54 which I thought was hilarious as it backfired on the creditor. So I've kept to that payment as it is interest free and didn't see the need to pay anymore.

Thrugelmir

cc4rhu wrote: »

Sorry the above mustn't be clear. It isn't on my credit file anymore as the CCJ was issued in 2006. I was paying around £120 pcm towards this but the creditor wasn't happy. Court set it at £5.54 which I thought was hilarious as it backfired on the creditor.So I've kept to that payment as it is interest free and didn't see the need to pay anymore.

Who was the default with?

cc4rhu

I'm 99% sure it was CitiBank on a credit card.

Thrugelmir

cc4rhu wrote: »

Court set it at £5.54 which I thought was hilarious as it backfired on the creditor. So I've kept to that payment as it is interest free and didn't see the need to pay anymore.

I think that find that your actions have backfired on you. So you won't find the situation so funny now.

cc4rhu

My actions?
I'm not trying to avoid paying debt the court set a fixed amount which I have paid since 2006 exactly what they set. The original payment was £120ish and the creditor didn't like it. I don't see the problem.

I really should try to be clearer in my posts as I thought it was obvious.

Back to the orginial question. Does anyone know what I need to do to help me get a new mortgage in the future. Do I need to worry about the charging order (which isn't on my credit file anymore) or worry more about the PDLs from 3 years ago?

Thanks

kingstreet

When you attempt to sell the property, your solicitor will have to pay off the debt to get the charge released.

If the CCJ and the default have dropped off your file, all you have to worry about is the payday loans.

AFAIK there are only one or two lenders who have a problem with payday loans, NatWest being the one which comes readily to mind.

Dave_Ham

Spot on again Kings, I seem to be second best on all of these posts lately.

I would expect these hurdles to be easily overcome by an experienced broker.

And yes, big steer clear of Natwest given the PDL's...

kingstreet

I've done my prep for my two appointments tonight, so I'm twiddling my thumbs on here until I have to get ready to go out.

cc4rhu

Brilliant that's exactly the advice I was looking for.