3 years mortgage planning scuppered !

lillib77

Advice really needed.

3 years ago my husband and I got turned down for a mortgage. Essentially because we had moved 5 times in the space of 18 months, plus I had been on maternity leave and that counts against you!

We have owned two properties before with mortgages no problems.

We've also been lucky enough to buy our house outright with a temporary loan from my parents - but now we have to pay them back by getting a mortgage.

For three years we have been building credit records; staying put with all utility and insurance providers, paying off debt but remaining active on credit cards. We have debt but manageable (?) total debt is 1/3 or our joint income.

now I've just been hit by a debt collector for an outstanding credit card account from 6 years ago. I've paid it but now it's on my credit card. Basically I cancelled the card, had no idea about the outstanding amount and never got any communications from the card provider in the year between cancelling and moving house.

Am I completely screwed for a mortgage now because of this ?

Help

Lillib77

roje

Do you really mean that your debts are a third of your income?

lillib77

Hiya well income is £90k per annum and we have £29k debt

ACG

I think debt of 33% of your income is going to be a bigger issue than a debt collector knocking at your door.

The default (assuming there is one) has to be put on your account from the date you defaulted. They can not default you x years after you defaulted.

Get copies of your credit reports and see if it is on there and if so what date.

lillib77

Okay seriously underestimated the impact of the debt.. Frightening how naive so many of us are. (Just reading a lot of other posts)

Any advice on what to do ?

lee111s

With an income that size, I suggest you make a propee serious effort at paying down your debts.

Get over to the debt free board, post up an SoA and I'm sure you'll get plenty of help and advice on where you can cut back to be able to get the debts down quicker.

cakeforbrains

Have you tried putting your figures into any online mortgage calculators on lenders websites. You can enter your debt and see how much this reduces the amount they'd be prepared to lend in theory (although a high level of debt may mean they'd not be keen to lend at all).

Thrugelmir

lillib77 wrote: »

3 years ago my husband and I got turned down for a mortgage. Essentially because we had moved 5 times in the space of 18 months, plus I had been on maternity leave and that counts against you!

In the intervening period you have built up £29k of debt?

lillib77

The debt has stayed still for 3 years. I was unemployed / on maternity for 2 out of the last 5 years. My husband has brought debt with hi from before our marriage, but reduced this by £10k. Then the kids arrived. He has £20k of debt. I have £8k.

Landofwood

lillib77 wrote: »

The debt has stayed still for 3 years. I was unemployed / on maternity for 2 out of the last 5 years. My husband has brought debt with hi from before our marriage, but reduced this by £10k. Then the kids arrived. He has £20k of debt. I have £8k.

Well you cleared a grand in a few minutes, keep it up!

fermi

lillib77 wrote: »

now I've just been hit by a debt collector for an outstanding credit card account from 6 years ago. I've paid it but now it's on my credit card. Basically I cancelled the card, had no idea about the outstanding amount and never got any communications from the card provider in the year between cancelling and moving house.

On that issue, when did you 'cancel' the card and what is the default date on your credit report?

Note that I mean the original "default date" = field and not dates of Ds or 8s in the subsequent status history.

The default and whole account will be removed from your report 6 years from the initial default date, so if recorded accurately at close to 6 years ago it may not have long left impacting your report.

If on the other hand the default date is inaccurate, e.g. unacceptably late as can often happen when passed to collectors, then you may be able to complain, get it corrected to drop off sooner.