Mortgage?

Verysillybilly

I've lurked for a while but first post so please be kind!

We've got ourselves into a mess with loans, credit cards and pdls. No defaults or ccj's but late payments and high volumes of credit, over limit on cards etc.

We've decided to sell house to clear and hopefully will have c£25k left as deposit towards somewhere else. We plan to rent for a year, save up some more and keep everything up to date financially.

(Debt mainly accrued while mrs vsb out of work but both now in perm jobs with decent wages)

As it stands our credit scores are non-existent. My question is how long is it likely to take to build back up so that we can get a mortgage? Is there anything we can do to help this process?

Any advice appreciated!

Hazzinho

Make sure you do wipe out the debt and get on the electoral roll at your new address, keep some of your credit open but manage it properly, don't build up the debt again. Credit displays for 6 years so you need to show you can manage credit properly for a decent period of time like at least a year.

Verysillybilly

thanks hazzinho that's helpful.

I guess it's the pdl i'm most worried about. plan to put a year from clearing to applying for mortgage again but still worried might have an adverse impact.

GwylimT

Clear your debts if possible, as above mention get on the electoral role at your new property.

If you still have access to credit use it wisely, if possible pay for things on your credit card and pay it off in full at the end of each month.

Yes, some lenders don't like pay day loans and some will automatically refuse you, others aren't quite as anti pay day loans, but still it wont make you look desirable so this year you need to do as much as you can to show that you have changed your ways and you can essentially be trusted with a credit agreement.