Can I get a mortgage after I've paid off my debt or do I have to wait 6 years?

Geminian_Dragon

Can I get a mortgage after I've paid off my debt or do I have to wait 6 years for my credit to be acceptable?

I'm about 18k in debt but I've moved back home and received a raise where I can pay the 18k debt off in 12 months, so I will be able to afford a mortgage eventually, as I will always have £1,500 left over each month after tax and expenses.

I would like to get a property, because I am sick of paying off someone else's mortgage with the amount of rent I pay.

ACG

Having debt isnt a problem, its if you have missed payments.

So assuming you have borrowed money and been making your payments then there is no issue.

suse*

Just having debt doesn't stop you getting a mortgage. If you have a patching history though it can take 6 years for bad items to drop off your file. This would be things like late / missed payments or ccjs for example.

If you go to quidco you can get free copies of your credit file - just remember to cancel before the free offer runs out - and also sign up at noodle which is free all the time. You should be able to see what the banks would also see and that will show any missed payments etc. Based on that you will have a better idea where you stand.

If you use a broker they will be able to help you get a better deal on a mortgage so if you can have at least 2 years with no missed payments and have a healthy deposit and better salary if the ltv isn't too bad you should be able to find someone who might be able to help. The interest rate you get offered might be higher as you're more of a risk than someone with a perfect history so you have to weigh your options between bigger deposit and ltv.

Thrugelmir

What else is on your credit history? That's the only thing that may delay your plans.

Clearing the debt fully and saving for a deposit is all very positive. A great goal to aim for.