First time buyer (Help to buy) - not great credit history

JC509

My suggestion is:

1. pay off all the remaining loan.

2. Pay off any store card or credit card.

3. Be on electoral roll if u r still not.

This would really boost ur credit rating and show the mortgage ppl that u have 0 credit commitment.

Apply the mortgage as soon as u can see ur loan has paid off and £0 credit card balance on ur credit file.

Good luck!

Thrugelmir

JC509 wrote: »

My suggestion is:

1. pay off all the remaining loan.

2. Pay off any store card or credit card.

3. Be on electoral roll if u r still not.

This would really boost ur credit rating and show the mortgage ppl that u have 0 credit commitment.

Apply the mortgage as soon as u can see ur loan has paid off and £0 credit card balance on ur credit file.

Good luck!

Along with starting to build some savings.

Buying a property is only the first step. Paying the mortgage along with maintaining the property. Is a 25 year (300 month) commitment. So the better prepared you are the easier it will be.

bt1

I am paying off all the debts this weekend. The loan and CC are both with natwest so they will be able to see that it's paid off. I've been on electoral roll for 3 years.

Would I need to wait even though its all with natwest??

I assume the broker will apply for mortgage next week?

JC509

bt1 wrote: »

I am paying off all the debts this weekend. The loan and CC are both with natwest so they will be able to see that it's paid off. I've been on electoral roll for 3 years.

Would I need to wait even though its all with natwest??

I assume the broker will apply for mortgage next week?

I suggest u r better off just wait for a bit, as soon as u can see the loan has settled on ur credit report. Because paying off the loan not just help u lower ur credit commitment but also boost up ur credit rating. Credit rating is the key! Start not to use any overdraft or credit card. because these would count as ur credit commitment,even if u paid it back immediately, sometime it takes 1-2 months for those credit agents to update ur file.

Good luck!

bt1

Hi JC,

I have already paid the reservation fee which is non refundable :-/

I will have to go ahead with this now and I guess if I am not offered the mortgage ill have to wait.. The loan will be paid off by end of week just waiting for a cheque to clear.

I am hoping that as its an actual person who received the mortgage application rather than the automatic process of the AIP, they will be able to see that my loan and credit have been paid off as they are both with natwest.

I will have to wait and see!!

Fingers crossed for me!

I'm not getting myself too excited just yet as I know it's not 100% certain I have the mortgage! :-/

JC509

bt1 wrote: »

Hi JC,

I have already paid the reservation fee which is non refundable :-/

I will have to go ahead with this now and I guess if I am not offered the mortgage ill have to wait.. The loan will be paid off by end of week just waiting for a cheque to clear.

I am hoping that as its an actual person who received the mortgage application rather than the automatic process of the AIP, they will be able to see that my loan and credit have been paid off as they are both with natwest.

I will have to wait and see!!

Fingers crossed for me!

I'm not getting myself too excited just yet as I know it's not 100% certain I have the mortgage! :-/

I see! In that case then u have to go ahead with it and try then. In the mean time try not to use ur credit card.

I hope everything is going well for you! Good luck and fingers crossed for u. :beer:

bt1

I definitely won't be using my card, once td cheque has cleared I'm going to pay off the credit card and loan in full..

Sent off the help to buy loan application so once that's back I can apply for mortgage! (Their deadline is Friday)

I'm crossing everything I possibly can!!