Mortgage for FTB advice please- Credit report with old default

memgem

Hi there,

I'm new to all of this so apologies if this isn't written in the correct place!
I am currently looking to apply for a mortgage with my fiance and had a couple of issues which I would love some help and advice on.

Firstly we have saved £30k for our deposit at the moment which was our target. Our combinbed income is 58k per year.

Her credit report and history is really good as she has always been prompt with payments and paid off any debts she may have. When we checked there were no negative factors and her report was 999 and that was after paying off two loans and cards.

Mine isn't so good. Initially we spoke to a mortgage broker who had applied for a mortgage for us around January time prior to seeing our credit report. We got declined. I checked my account and there were some things on there which i had forgotten about / didnt know it would affect it.

I am currently 27 years old and throughout 2006 onwards i was an university until 2010:

MY credit report at the time of applying was 650 and had the following;
- a default from 2006 (date of default 2009, satisfied 2011) for £80 - satisfied (a final phone bill which i didnt get as i changed address, i didnt even know i had this so i spoke to experian and wrote a notice was put on this entry saying this) ...
- a 36 month payment plan in 2006 , settled in 2009 which had 7 late payments- This was whilst i was at uni and couldnt afford payments, a notice has also been put on this entry stating this point.
- A pre paid credit card with over draft had 1 late overdraft payments recently this year (this shows up as a negative as it says recent late payments) .
- Using majoirty of my credit card (2k) - this showed a negative as using too much of my available credit. Credit car payments have all been on time though over the last 2 years with 3 increases in my credit allowance.
- Other things on my account ; 1) paying off a car loan (all on time since last year), 2) a settled payday loan (literally one day 2 years ago which i did as i had thought it would be good for credit rating to pay it off on time - i now know this is stupid but wasnt aware at the time), 3)a store card which I used once and paid off fully and on time over 6 months .....4)2 closed nationwide accounts, no late payments etc..

My currently credit report is 886 ( it was 912 last month)

- since seeing my report in january, i immediately paid off my 2k credit card fully (i used some of this recently hence why it dropped a bit in score
- i paid off the pre paid credit card fully, and closed the account- this then ended up showing 3 late payments as the card said everything was 2 months in arrears so prior to it showing as settled and closed it came up with late payments even thought it was closed.
- i closed the store card account as it was still active showing i had more credit than i needed.
The report now shows 2 negative...3 late payments this year (from the pre paid card), and one for the default, there are 4 positive green points.

It currently seems to be way better off then before, and now i know what im doing and how to manage things. What I wanted advice on now is how to go about approaching someone for a mortgage and what to expect. A majority of the worse parts of the reprot such as a the default are quiet old and were when I was around 18 years old so i had no idea at the time how it could affect me now.

Any of your help would be really appreciated as we have worked so hard to save up so would like to take the next step now


thanks

amnblog

Why have you not gone back to the original mortgage broker?

memgem

No reason other than we decided to wait a bit until i improved the credit report over the last 6 months, he is a close family friend who isn't charging us for anything either, and he's quiet busy so we wanted some other advice before pressing him to help us again.
Thanks for your reply.

amnblog

Go back to him - he knows the case - we don't.