fixing bad credit rating

whattodonow1

Hi, im new to this so please ignore my ignorance.
i have roughly £5,000 debt that i have been black listed for. i am soon to receive a lump sum and want to pay it off. i then want to buy a house with the rest but will need a small mortgage. is this possible once my debt is paid and i have roughly 75% deposit on a house? many thanks:)

DCFC79

whattodonow1 wrote: »

Hi, im new to this so please ignore my ignorance.
i have roughly £5,000 debt that i have been black listed for. i am soon to receive a lump sum and want to pay it off. i then want to buy a house with the rest but will need a small mortgage. is this possible once my debt is paid and i have roughly 75% deposit on a house? many thanks:)

Its not your credit rating your fixing, well it is but lenders don't see it, they just see your credit history.

The debt doesn't just disappear once you pay it off, you will have defaults on your file which will take 6 years from date of default to clear.

Maybe you could get a mortgage now but who knows, I don't like your chance much but it depends on what does your credit files say ?

whattodonow1

hi thats what i thought to be honest. im not sure about my file, i just presume that its bad. i still have the debt and have been out of work and tbh just buried my head in the sand. im working again and have a lump sum coming soon so just want to repair my credit. do you know if i pay it off and try and build up my credit over 2 years it would make a difference to a mortgage decision? thanks for your help

[Deleted User]

whattodonow1 wrote: »

i have roughly £5,000 debt that i have been black listed for.

What do you mean by this? There is no blacklist. Lenders make individual decisions.

whattodonow1

ouch i just looked at my "credit dash board" its 190 out of 700 :eek:

whattodonow1

hi
im new to this, ive never had debt but i presumed that my file would be bad as when i was out of work i just could pay anything. tbh i buried my head in the sand. now im back at work i want to pay it off. ive looked on my "dashboard" and my score is 190 out of 700 so thats awful, i just wondered if i paid it off after ayear or so it would be poss to get a small mortgage with 80% deposit on the property and ni debt?

[Deleted User]

whattodonow1 wrote: »

ouch i just looked at my "credit dash board" its 190 out of 700 :eek:

Ignore that.

What do your files actually say? Missed payments? Defaults? CCJs?

Superscrooge

whattodonow1 wrote: »

hi
im new to this, ive never had debt but i presumed that my file would be bad as when i was out of work i just could pay anything. tbh i buried my head in the sand. now im back at work i want to pay it off. ive looked on my "dashboard" and my score is 190 out of 700 so thats awful, i just wondered if i paid it off after ayear or so it would be poss to get a small mortgage with 80% deposit on the property and ni debt?

As ZX81 mentioned. We really need to know what your credit history actually says rather than just quoting the credit score.

If you are wanting a mortgage. It will look better on your credit history if all the outstanding defaults are settled. The fact you have a 75% deposit will put you in a better position than someone who only has a small deposit. But it is very difficult to say what your chances are of getting a mortgage.

If you look at the below thread, a mortgage advisor stated it is still possible to get a mortgage with a default on your file.

https://forums.moneysavingexpert.com/discussion/comment/69838758#Comment_69838758

m4rc

If you have 75% deposit I would think a mortgage wouldn't be too much of a challenge. Go through a whole of market broker, not somebody tied to a bank or an estate agent, get someone who can search for all deals and be honest with them. At kind of deposit should mean that a lender has no real risk, if you don't pay they repossess and sell the house, as long as they can sell it for at least 25% of its purchase price they get their money back. If you had a small deposit it would be an issue but I wouldn't be stressing about it. Clear the debts and make an appointment with a couple of brokers, go with someone you like and who you feel comfortable with.

Good luck