How long to wait to apply for mortgage after clearing £40k debt?

howstupid

I'm not expecting an overnight change, I know I need to wait at least until my credit report reflects the fact that the debts are gone but I'm interested to hear experiences of others to understand how long to wait after that before applying.

Thrugelmir

Speak to a mortgage broker. Peoples circumstances differ. Broker will be best placed to guide you to a suitable lender.

sammyjammy

Whats the hurry? Give yourself time to get used to your new situation. Why not use some of that money you were using to pay off debts to increase that deposit.

howstupid

We don't want to keep renting and paying someone else's mortgage- the sooner we can buy the quicker we can pay off our mortgage.

kingstreet

How quickly will your former creditors update the credit accounts on your credit files?

Clear the commitments, leave it a month or so, then order all three versions of your statutory credit file and see what remains visible.

FWIW one particular lender will treat repaid credit as still being in existence until it is three months repaid.

Some lenders don't ask for bank statements.

You need to appoint an independent broker who will be able to place your case with the correct lender, first time. Ask friends and relatives for a recommendation.

howstupid

I guess if lenders can see the last 6 years history it's a bit academic but I'd welcome any feedback from people who've only need one months bank statements when applying for a mortgage- which lender did you use?

I'm thinking I'll wait until I have 3 months bank statements showing no repayments (and some savings) and ensure all my accounts are updated on my credit file to be on the safe side.

Does that sound like the best option to get a balance between getting on with buying but not doing it too soon after repaying everything?

kinger101

Getting three months bank statements sounds good, but ultimately, you need to follow the advice given by three people here of using a mortgage broker. The danger is if you apply to the wrong lender, they might refuse a mortgage. This could be detrimental to further mortgage applications with another lender, as details of previous searches are recorded on your credit file. A mortgage broker will be able to select a appropriate lender based on your particular circumstances.

howstupid

Thank kinger.

How do you find a good whole of market broker?

I'm worried I'll end up with some idiot who has no idea.

kingstreet

Ask friends and relatives for a recommendation.

Failing that try https://www.unbiased.co.uk, switching off the sponsored ads only option, so you get a full list for your area. Call a few and see how they sound.

neneromanova

When I bought a house with a previous partner, we just had to show that the debts were going to be cleared when the mortgage came through. They were happy with that.