applying for a mortgage!

Hamster14

Hi guys,

We'll be applying for a mortgage over the summer, so I want to make my credit score the best it can be ready for then.

I've just arranged to close down any recent credit cards, expired phone contracts etc, as they weren't showing as settled, so those are sorted

We are now left with one 0% credit card with a balance of £600, and one credit card which hasn't been used for around 4 years.

Is there anything else I could do? How long will it take before the file is updated to show all the settled credit?

Cheers,
H.

Malmo

Obtain copies of all relevant mortgage applicant's statutory credit reports from all 3 Credit Reference Agencies. You need all 3 reports to obtain a full picture of your profiles. It is worth reviewing all 3 reports well ahead of time, to enable you to spot any errors and have them corrected in good time, or any adverse issues such as defaults, CCJs, missed payments, arrears etc that you may not be aware of. Doing this exercise will ensure that the data that lenders use to credit check you is up-to-date, correct & complete. There is no need to sign up for the monthly subscription services - the scores they generate are irrelevant to lenders and not visible to anyone except you and the credit reference agency.

See links below to each agency's statutory report.

Experian Statutory Report

Equifax Statutory Report

Callcredit Statutory Report AKA Noddle

Check that your current, previous and linked addresses are correct, that you're both on the electoral register (this is a UK legal requirement anyway), that any financial associations derived from joint credit accounts are correct or have them disassociated if incorrect.

Hamster14

Thanks very much - I've noticed I have two defaults on one credit card, these were around 2 1/2 years ago. How much impact will these have on applying for a mortgage?

Malmo

It depends on each lender's specific criteria and what adverse credit history they will accept. Best to engage a whole-of-market mortgage broker for your circumstances. See this post for a suggested method on how to search for a local broker.

teffers

Hamster14 wrote: »

Thanks very much - I've noticed I have two defaults on one credit card, these were around 2 1/2 years ago. How much impact will these have on applying for a mortgage?

I would echo Malmo.

With adverse credit history it's very very likely you'll need a broker that can access 'other' lenders that specialise in adverse.

Your situation may be different (lots of other variables involved) but I couldn't get anything other than a 75% mortgage @ 4.4% with my single 5.5 year old (satisfied in 2010) default. I needed 80% @ < 3%

Decided to leave the search until after my default drops off in July.