Mixed credit history

Swizzle1066

Hi all,

My partner and myself are looking to buy a place shortly (just had the first valuation done) but before progressing too far I was hoping people could help in regards to our mixed credit histories...

Myself: Approx 40k equity in property worth 160k, no bad history, always paid off CC in full every month (cash back!), 999 on experian.

Partner: Always rented until moved in with myself last year. Was on a debt management plan but fully paid in February 2013 (all shown as settled). These are now older than 6 years as was 2006 when it started. She had taken out 2 payday loads just under 2 years ago but nothing since.

Between us we earn approx £100k (pretty much 50:50) and are looking to buy a property for around £300k with a £45k deposit (15%).

Can anyone advise how likely we are to be able to get a mortgage - preferably one with good rates?

Many Thanks

Thrugelmir

Swizzle1066 wrote: »

These are now older than 6 years as was 2006 when it started.

The dates of the defaults aren't the issue. The DMP is.

Your partner will need to maintain a squeaky clean credit record for a some time. Before mainstream lenders will consider them a suitable applicant.

Swizzle1066

Thanks Thrugelmir, I thought DMP's were removed after 6 years though - or am I mistaking this for something else?

Thrugelmir

Swizzle1066 wrote: »

Thanks Thrugelmir, I thought DMP's were removed after 6 years though - or am I mistaking this for something else?

I assumed that the final debt was paid in February 2013. Just 2 months ago.

Swizzle1066

Thrugelmir wrote: »

I assumed that the final debt was paid in February 2013. Just 2 months ago.

Correct. The original defaults and DMP were in 2006. The final payment was in Feb 2013, so all debts now show as settled. I thought it was the date of the default that was taken into consideration?

Thrugelmir

The clock starts again once the DMP is settled.

Too many people see it as an interest free loan. So take time in settling the debts. Unfortunately lenders view the matter differently.

Dave_Ham

There will be AP markers on the credit file and these will be visible to the lenders.

That said, there will definitely be solutions.

You need to get your Partners Experian, Equifax and Call Credit files to a decent broker and they will get you the best rates possible.

Clearly the credit history will preclude you from the best rates available, although the experience of the broker is likely to differentiate the rate achieved.

Good luck