Credit scores and mortgages

Manofhull

Hi guys,
Firstly this is my first post on here, but I've used this site for years. I've always found somebody has posted a thread that answered my questions, so thanks.

My credit rating/score is pretty poor, I've had some personal issues over that last few years that made me make some bad financial Decisions, payday loans to be to the point. Thank fully that's now in the past, and all paid back as of a couple of months ago.
I've got a decent job (£28k plus a year) and no ccjs. I don't have much in outgoings, just the usual rent, phone, TV and car insurence. Now my question is, how long do I need to wait before I can apply for a mortgage? And would I even be considered for one? I can get an interest free home buying loan from my employer of about £12k for a deposit too.
All help appreciated!

DCFC79

Your credit rating/score is just how the credit ref agencies view your credit history, lenders don't see it, they use an in house system to determine if they think your worth to offer a Loan or a mortgage too.

As to how long to wait, maybe a couple of years. When is the last timed you used a pay day loan ?

You basically have to make yourself look suitable to lenders via your credit history, so that's pay any credit cards on time etc etc.

Manofhull

The last time I took one out was about 6 months ago. But I finally paid the last one back a couple of months ago.

Thrugelmir

If you've cleared your old debts. Take a look at the new Help to Buy ISA. A good way to start building a deposit. Will demonstrate to a lender that you've the discipline to save. Whilst doing so time will pass allowing your previous credit history to age.

Manofhull

That's the thing, I can get a hefty deposit from my employer. I have a good income so I'm really to buy now. I'll just have to let my history settle I guess.

Thrugelmir

Manofhull wrote: »

That's the thing, I can get a hefty deposit from my employer. I have a good income so I'm really to buy now. I'll just have to let my history settle I guess.

It's a loan though. As a consequence would impact your application. If you build you own deposit as well then you'd be in much better place financially. Buying a property is a long term commitment. Falling off the property ladder isn't a place you want to be.

MEM62

Manofhull wrote: »

I can get an interest free home buying loan from my employer of about £12k for a deposit too.

As far as I am aware, you cannot borrow money for your deposit. It has to come from savings. If you have no savings already, once you have saved for a deposit the impact of and payday loans would have diminished.

Manofhull

MEM62 wrote: »

As far as I am aware, you cannot borrow money for your deposit. It has to come from savings. If you have no savings already, once you have saved for a deposit the impact of and payday loans would have diminished.

I'm in the armed forces, and it's not a loan as such. It's called LSAP (long service advance of pay) it's repaid back directly from my pay each month. And if I leave I have to pay it back immediately, but that'll just come from my pension lump sum. if I do my full time. Or a resettlement bonus if I leave before.