Possible to obtain a mortgage..?

jimjames

mrcjevans wrote: »

Sorry I don't really know what you mean by this

I assume the question is, where is your deposit? If you've used the money to pay off your debts, presumably there isn't anything left in your bank account.

As well as the deposit of at least 5% you'll also need money for purchase costs as well as any emergency repairs etc.

Thrugelmir

HappyMJ wrote: »

Settle the outstanding debt..offer a full and final settlement and the debt won't be outstanding any more and you'll have a better chance of being approved for a mortgage sooner.

With a big proviso. The financial institutions are unlikely for forget (for a very long time). There's no such thing as a free lunch. As a price is paid.

Partial settlements will set alarm bells ringing with mortgage lenders as well.

mrcjevans

Thrugelmir wrote: »

With a big proviso. The financial institutions are unlikely for forget (for a very long time). There's no such thing as a free lunch. As a price is paid.

Partial settlements will set alarm bells ringing with mortgage lenders as well.

So what's going to set more alarm bells ringing? not settling at all or settling?

and we will have 10-15k deposit either way

mrcjevans

and there is a couple of smaller one's, like £200, is it better to make one full payment of those and pay it back in full? Or make an offer like the others?

I've also just noticed that one says Balance: Satisfied? But I've not paid the whole thing off? Sorry a little confused!

Senior_Paper_Monitor

Take your credit reports, recent payslips, bank statements inc details of your savings to a mortgage broker - they will tell you what is possible now and/or in the future.


There will be limited opportunities for this one.

Thrugelmir

mrcjevans wrote: »

So what's going to set more alarm bells ringing? not settling at all or settling?

and we will have 10-15k deposit either way

Not settling or partial settlement is highly likely to result in a permanent black mark by the lender concerned. This will be recorded internally and not appear on any CRA report.

Lenders are wise to people repaying minimal sums while saving elsewhere. The wheel was invented over 2,000 years ago. Likewise in finance there's nothing to be gained by trying to be clever. As merely breeds mistrust. A critical part of any financial arrangement.

mrcjevans

Thrugelmir wrote: »

Not settling or partial settlement is highly likely to result in a permanent black mark by the lender concerned. This will be recorded internally and not appear on any CRA report.

Lenders are wise to people repaying minimal sums while saving elsewhere. The wheel was invented over 2,000 years ago. Likewise in finance there's nothing to be gained by trying to be clever. As merely breeds mistrust. A critical part of any financial arrangement.

So I spoke to a mortgage adviser at Natwest, he said that it isn't marked against you after 6 years and even suggested not settling the defaults as it wouldn't make a difference so I'm a little confused. He suggested waiting until the 6 years have passed and in the mean time possibly get a credit card that you pay in full at the end of each month.

I also rang experian and Equifax, same answers to the same questions. They said to settle the smaller amounts if I can, but added that after 6 years the defaults are not used as reference in credit applications.

mrcjevans

Anyone have comments on this or some advise as to what I should do now?

missionfella

mrcjevans wrote: »

Anyone have comments on this or some advise as to what I should do now?

When you apply for a mortgage will you be asked if you have any outstanding debts though?

Thrugelmir

mrcjevans wrote: »

So I spoke to a mortgage adviser at Natwest, he said that it isn't marked against you after 6 years and even suggested not settling the defaults as it wouldn't make a difference so I'm a little confused. He suggested waiting until the 6 years have passed and in the mean time possibly get a credit card that you pay in full at the end of each month.

I also rang experian and Equifax, same answers to the same questions. They said to settle the smaller amounts if I can, but added that after 6 years the defaults are not used as reference in credit applications.

Credit reference agencies don't lend money. Not their business too.

Likewise in house mortgage advisors don't actually deal with the processing of applications, i.e. decline or acceptance.