first time buyer advice

Mrsmoneysaver14

Myself and husband got married in july and have now started saving towards buying a house we currently have £3, 000 saved. We have around £700 debt between us its about 6 years old but the defaults started in the last 3 years as we paid them until then. Should we pay these off and how long will they take to come off of our credit rating?

We know that we aren't going to be able to get a mortgage for at least 2/3 years. He is self employed and I will be qualifying this may so definitely not going to be accepted for a mortgage but we would like sny tipd and advice on how to improve our chances of getting a mortgage as soon as possible. We should be able to save 40, 000 in the next three years (if I get a job but social workers are in demand)

Thanks everyone

bargainhunterss

Sounds obvious but the less debt you have, the better your credit score. So I would probably say focus on paying off any debts before you put lots of money into savings (you will probably pay more in interest on the debt than you would make on any savings).

kingstreet

Defaults remain visible on your credit history for six years from the date of registration.

Well-conducted credit scores you positive points, adverse credit like defaults scores you negative points. Having credit means the monthly cost will see your mortgage borrowing power reduced.

The bigger the deposit, the less risky you will be viewed by a mortgage lender.

Ignore the credit scores provided by the likes of Experian and Equifax. These are indicative at best and not worth paying for. Put your statutory credit files in front of a good independent mortgage broker if you want to roadmap what you will be able to do and when.

Mrsmoneysaver14

Thank you both for your advice