Applying for a Mortgage & Credit History

manda84b

Hello!

So, after a long time I am officially debt-free. I had an abysmal credit history due to a previous relationship I was in. I have managed to maintain, for the past 5 years, a clean credit history, mainly because I couldn't get credit.

I am with a new partner and we are looking to buy a house later this year. All my bad credit history will drop off my file due to it defaulting over 6 years ago however one account will still remain until late 2015 and it shows that I missed a couple of payments, will this have a detrimental effect on me applying for a mortgage under these new rules? I know they will be scrutinising everything but I really would like to know if you think it would hinder my chances. I took out a credit card last year and have been paying that off as soon as the statement comes in to show that I can manage my finances.

kingstreet

MMR has no impact on adverse credit/credit scoring, it is about affordability, income v expenditure.

Credit determines if you can get a mortgage. Affordability determines how much.

As with all things mortgage related, lender selection and loan to value will determine success or otherwise. Do a fact-find with an independent broker and establish what's possible. Take all three versions of your credit file with you.