Bad Credit - Mortgage

ksm1988

Hi,

I am new to MSE but I was hoping you could help.

In the past I have not been the best with my money. I currently stand at £5.5k debt (2 credit cards and overdraft). I have set up a budget to pay this off. Then there is the fact that I have been late (no more than 1 -2 days) paying my credit card about 5 times in the last two years and over the last 6 months, have probably used the services of pay day loan companies approx 5 times.

So anyway, not all that great. My credit score varies from good to very good on both Experian and Equifax. I really want to buy my own property as I have been left some money as a deposit.

What I really want to know is how long should I leave applying so I look like a desirable candidate. The £5.5k debt will be paid off by about July, but how long before my rather silly choices over the last year or so wont be as much of a factor to the bank.

Any help would be much appreciated.

Thanks

BitterAndTwisted

Those pay-day loans are going to be a very black mark for some time.

If you're £5.5k in debt you might be better off using the money left to you to settle them all in full, then start saving up for a decent deposit.

SerialRenter

I'd recommend you visit the Debt-Free Wannabe Board first and find the best way to get your finances in order before thinking about buying a house, which at the end of the day, is more debt that needs sensible management.

ksm1988

Hi, thanks for the advice. I have a plan in place, so I will have my debt paid off and be in a far better position. I just hope that a silly couple of months doesnt hinder my chances in say a years time?!