What should I do before application??

jessica4

Hi there,

I am hoping to apply for a joint mortgage with my partner at the end of next year (I already have a mortgage on my own which is up to date). On my credit report I have 2 small debts and one small ccj all of which will be removed before we intend to apply as they will be over 6 years old. I want to know if these recently removed debts will hinder my application or will they not be seen at all?
I have otherwise good credit accounts and my partner has good credit.

Many thanks

Thrugelmir

Financial institutions can hold records for longer than 6 years themselves. The record will amount to little more than a list of do not do business customers. So not settling debts can potentially impact for many years.

jessica4

But how would the mortgage company I apply with see this if it is no longer on my credit report?

kingstreet

Pay everything on time.

Use a credit card for everyday spending, ensuring you pay it of in full at the end of each month.

Don't apply to any lender with whom you had credit problems in the past as they can see stuff older than six years on their internal systems.

jessica4

Thank you.

I understand that I will obviously never attempt to apply for credit with the companies that I have had this debt with but....this doesn't answer my original question.

Any help please guys??

matttye

jessica4 wrote: »

But how would the mortgage company I apply with see this if it is no longer on my credit report?

They wouldn't.

jessica4

So I'll be ok to leave these debts to drop off and concentrate on keeping my other accounts up to date? And I should then have only good credit for when we apply?

Thrugelmir

jessica4 wrote: »

But how would the mortgage company I apply with see this if it is no longer on my credit report?

The financial institution will retain a record. Why would they wish to lend money to someone who doesn't settle their debts. Business relationships are 2 way.

jessica4

But I won't be applying for a mortgage off said financial institutions, they where payday loan companies

matttye

jessica4 wrote: »

So I'll be ok to leave these debts to drop off and concentrate on keeping my other accounts up to date? And I should then have only good credit for when we apply?

Yeah sounds like a good plan!

Are the debts satisfied? Bear in mind they can still obtain a CCJ which will further affect your credit for 6 years of the debts aren't satisfied and they're not statute barred.

jessica4

The ccj is from 2009 and as far as I know (I haven't had contact off them since 2009 and I think they are actually no longer in business) that will be that from them. The other 2 defaulted in 2010 and again I haven't had any contact from them since then so as far as I know they will not be pursuing the matter further. I just don't know what to do for the best.