Poor credit history in the past. Will I get a mortgage of 95k?

apollo13_2

My landlord wants to sell the house which I am living tenant. He is looking for quick sale. Obviously I was offered 1st to buy.

Few moths ago my credit file was not good (Poor I would say). I have cleared and closed two credit cards a month ago(5.1k) and 3k overdraft(closed now).

I still have one credit card of 4.6k. It has 1k balance to pay (I will have clear this at the end of this month pay).

I have checked my credit file both on Equfax and Experian which 470 (excellent), 881 (good) respectively.

Mortgage would be on me. I am 28m. 19.5k earning a year. Current monthly expenses about £900 (rent,insurance,utility bill,fuel and so on) and I would be left around £800 to spare.

My credit file only got improved recently. And there is 1 negative factor on Experian which says like this "The total balance of your active credit accounts (excluding mortgages) is £3,707." I know it take few weeks to come off as being cleared.

Whats bugging me is I am afraid the lender will see my negative factor and if they go back to few months which a bit mess.

Here is my score factors on Experian

7 Positive score factors
You have 10 settled non-mail order credit accounts.
The average age of your credit accounts is 34 months.
Your highest credit limit on a single revolving credit account is £4.6k
Your total non-mortgage credit balance is £3.7k
You are using 5 non-mortgage credit accounts
The usage of your available credit indicates a lower risk.
You have not made any credit applications in the last 6 months.

1 Negative score factors
Your total non-revolving credit balance has not reduced significantly.

Any idea where do I stand right now? Will I get decision in principle?

P.S I have about 10k deposit ready and a first time buyer.

Jon_B_2

Do you even have a deposit?

apollo13_2

Jon_B wrote: »

Do you even have a deposit?

Yes, I have 10k

Lungboy

Do lenders loan more than 4x salary?

ExpertAdvice

Whats the price of the property?

apollo13_2

ExpertAdvice wrote: »

Whats the price of the property?

Sorry I got the title wrong. Property Guide Price is 95k.

alchemist.1

How are you receiving net pay of £1700.00 per month on a salary of 19.5 k.

Are you self employed and declaring part of your income?

Rob_Mogs

You've got some maths wrong there somewhere!

amnblog

Your studying of your credit file is commendable but the points you outline above are of no relevance to potential mortgage lenders.

Your biggest hurdle may well be affordability and your best option would be to engage a mortgage broker to guide this through for you.