Getting a Mortgage with Bad Credit History

downhillfast

Poten wrote: »

- Had a £2900 credit card debt with AMEX. I currently pay £60/month towards this and have a letter from them confirming that so long as I stick to the repayment plan they will not register a default, so there is no default on my credit file from them.

You say they haven't registered a default but have you checked that they haven't marked an 'arrangement to pay' on your credit file? If they have then you need to get this paid off as quickly as possible as that marker is being re-applied every month so will not disappear from your file until 6 years AFTER you finish repaying it... whereas a default is only applied once and drops off 6 years from the point the account was defaulted.

Poten

downhillfast wrote: »

You say they haven't registered a default but have you checked that they haven't marked an 'arrangement to pay' on your credit file? If they have then you need to get this paid off as quickly as possible as that marker is being re-applied every month so will not disappear from your file until 6 years AFTER you finish repaying it... whereas a default is only applied once and drops off 6 years from the point the account was defaulted.

It is marked as arrangement to pay.

Are you sure this is the case? Similarly, on credit report sites accounts appear to be 'defaulted' every month but in reality there is only one default registered.

Thrugelmir

Poten wrote: »

Thanks for the replies. It seems most of you suggest I should clear my debts asap. I am not being charged interest on the outstanding balances so I was doing so at a relatively calm pace but I will increase my repayments.

Treating the debts as interest free loans won't help your cause. If you wish to apply for a mortgage. Your credit history is a reflection of you and your attitude to money.

hethmar

Can anyone recommended a broker please? Son and daughter in law had DROs totalling £11k 4 years ago. They went to high street estate agent broker who told them no way they would get a mortgage without 30% deposit. They have £15k savings.

alchemist.1

hethmar wrote: »

Can anyone recommended a broker please? Son and daughter in law had DROs totalling £11k 4 years ago. They went to high street estate agent broker who told them no way they would get a mortgage without 30% deposit. They have £15k savings.

Look on the mortgage board. There are a few who post on there who deal with adverse credit.
They are not allowed to contact you but you are allowed to contact them.