General mortgage question

DaringDon

Hello all. Bit of a novice when it comes to this sort of thing so looking for some general advice.

OK, my credit rating wasnt/isnt the greatest. I dont have any CCJ's, defualts etc, although on loans and credit cards in the past I have had missed payments and things.

Anyway because of my credit problems I had to take a 100% mortgage from Future mortagages, and i also took a £10,000 loan from Welcome Finance. At present I am paying £388 p/m to the mortgage and £189 p/m to the loan.

Now i know that I am tied to Furture for 3 years. My question is, after three years of mortgage and loan payemnts with no arrears and good payment histroy, will my credit rating be 'good'? Also when i get to the stage in three years where i can change my mortgage, what sort of options will i have? Will there be anyway to pay off my loan and roll it into the house etc?

Aplogies if this is rather vague, and advice on any aspect of this situation you think may be of use would be greatly received. Thanks all for reading!

best regards.

luckyfool

DaringDon,

As long as your payments to both mortgage and secured loan are all on time, and you have cleaned up your act with any unsecured credit (i.e. started paying for everything by direct debit and on time every month), then based on the circumstances you describe I would expect your credit rating to be significantly improved, and you should have access to deals from high street lenders.

If all you had was minor arrears on unsecured credit and everything has been up to date for 3 years that is. If any of the unsecured credit went to default status and still showed as a balance outstanding then you may still find yourself paying a slight premium, it really depends. Speak to a good broker when you have about 4 months left to run on your Future deal and they will be able to help you out. Ideally a broker with access to a credit search faciluty, or show/send them an updated copy of your experian report at the time as this will help massively in sourcing the right lender for you.