Credit reference and lending criteria

leereni

Thanks for reading.

My questions come in three parts.

1. I have an old loan which I settled in mid 2011. For 18 months prior to being settled I made payments on time and these were annotated as "0". However, for months prior to this I was shown as being late paying. Will lenders look at this account as realise that firstly, it was settled almost two years ago and also therefore I was late paying 3 1/2 years ago and not look at it quickly and miss the fact it was settled 2011.

2. I have a payday loan which was settled 3 years ago. I am trying to dispute this account, as I believe the information is wrong. However, I was late paying prior to it being settled. How will this effect my chances of getting a mortgage?

3. My partner has an excellent report, never missed any payments and holds recent credit history with all payments made on time. If applying for a joint mortgage, do lenders look at us individually or score us together and then work out an average score between us?

Property price = 160000
Deposit = 16000 ( still need to save a couple of months)
My income = £38000 partner's income = £12000
1 child
No debt

Any help/advice much appreciated.

leereni

Also I wanted to ask on a credit report I was told in the past that if your have "6" s on your file technically this is a default. Is this true?

kingstreet

No, that's six months where the contractual payment has not been made.

Status "8" is default, but it will show as "default" too.

leereni

Thanks.

Any chance of answering the first questions?

kingstreet

1 and 2 are "string measuring" and the answers would be purely speculative. They may, they may not.

3 if you link two people together by a joint credit application, the bad one potentially pulls back the good one, because both their records are taken into account.

Likewise, you could say the good one pulls up the bad one, but who can say if it is strong enough to get across the "pass" line.

leereni

Sorry what does "string measuring" mean?

As far as question 3 goes then I'd like to think it will drag me up then.

Also, re. The question on default status. Do lenders look at "6" s as defaults then?

kingstreet

String measuring?

You're asking "how long is a piece of string?" and the answers are many and varied and would involve a degree of speculation.

No-one really knows how a lender might view a particular piece of information, in combination with other information, on any given day.

It makes prognostication very difficult.

A default is a default and 6 months missed, late or part payments are exactly that. Neither is going to be particularly helpful on a mortgage application, but the latter should be less damaging.

Why don't you find a good whole market or independent broker to look at this for you?

leereni

I'm waiting for a call from one thanks.