When is best to apply for mortgage, via credt report?

lihar

Hi

I've had a little look on here for anyone in a similar position but nothing quite fits, so unless I missed something. looking for some advice.

A tale that's been told many times, but my ex and me brought a house, he left after 2 months and I have paid the mortgage in full myself since. I had a payrise and planned to get his name off the mortgage (he wants this) when the fixed terms ends next feb. However he's pushed for it now and also I have met someone new so I would like to keep the same terms of the mortgage, get my ex to sign off (and this way he wont know the value of the property, which has gone up significantly) then sell it.

I'm with Santander, and because he is pushing for it earlier and because it's also in my interest because the sooner he is off the better, I spoke to them and they did an affordability test and said they would look at my application if i'd like to apply. I emailed them my credit report to look over as I didn't want to apply if they saw anything that may hinder. on that report, it showed me as in the poor area, with 88% of available credit being used. a car loan, 3 credit cards and a late payment on my Vodafone account. They still said I can afford to pay back my debts and take on the mortgage.

However, I recently opend a bank account and haven't done anything with it. This put me in to the very poor section, which Experian say will go away once that bank account has some history on me. I get a bonus that will clear one of my credit cards at the end of feb, but in the meantime I should be able to move myself away from the limit of all 3 credit cards by the time the Experian report next updates itself (next month).

My dad said I am being fussy about waiting for the next report, that I should just apply as Santander wont be looking at a snapshot of my report, they will be looking at the history of the last 12 months. that my Vodafone one was a glitch in a history of 6 years with them which I should be able to explain away (mortgage advisor who set me up with the mortgage originally said that). However, main thing for me is that on my last report it showed my credit card £33 over the limit, which is was for a day but unfortauntely that was the day they updated to Experian.

Im thinking I should wait until jan, once Ive paid a little more off my credit cards, another month of good use (well no use) on my new bank account (old bank account still left open as I've got years of history with them) and then hope for the best. Do you think my approach is right? My dad isn't a financial advisor and my mortgage advisor naturally hasn't the time to go through everything with me, mostly because he isn't gaining financially from this. he just doesn't want me to hook into a new deal as he wont benefit and its not in my interest as I want to sell up as soon as I can get my ex off the mortgage. do you think theres anything I can do to strengthen my case? My dad said he'll pay off my car loan if they query affordability, but thinks we should use that as leverage if I get an initial "no". I'm nervous to apply this side of xmas because the over credit will show from my credit card and I think that will be an instant no.

??

Thanks in advance for any help.

Ps. Experian say im fussing too much and should go for it, but yet when I rang them back again with a different question, the person was less positive.

Thrugelmir

Your first priority must be to address your debts. Close any unused cards or accounts.

Going over limit is a clear indication to a lender that you aren't managing your money very well. An unexpected event would blow you financially out of the water.

Draw up a budget. Review your outgoings and cut out waste. Stick to it every month.

Lenders view 72 months credit history data. So can see progressive increase in debt levels etc.

If your Dad is willing to help you financially. Borrow some money and clear the most expensive debt first.

You'll then be heading in the right direction to take the mortgage into your own name. Good luck.

lihar

Hi

So really, theres no point in me waiting for my credit card to be back within its credit limit, I may as well try now? Or will it still look better to wait until the credit report clearly shows that?