bad credit but will be sorted on sell...question..

March2012

if we wanted/needed a mortgage even smaller again would the past history even if all credit cards paid off be an issue in future?thanks

rtho782

Not much detail so I'll make some assumptions!

* You have a house and a mortgage, you are paying this currently.
* You have other bad debts, e.g. late payments, defaults, maybe CCJs.
* You want to sell the house, pay off the mortgage, and use any remaining equity to pay off the debts.
* You may wish to buy another house in the future.

Yes, if you have defaults and CCJs, these will impact your ability to obtain a new mortgage even if you have paid them off. If you wait 6 years they will go away.

That's not to say you wont get a mortgage, but it's likely to need a broker and you will pay a significantly higher APR.

Phil_H_MLIA(dip)_Cert_PFS

Largely as above, the significance of any past unfortunate credit events is determined by the amount of money involved, the time that has passed since occurrence / clearance but also whether there have been debt management plans etc.
There are some "specialist" lenders that work on a tiered rate system with their best (ie tier1) rates being very similar to high street.

Thrugelmir

March2012 wrote: »

if we wanted/needed a mortgage even smaller again would the past history even if all credit cards paid off be an issue in future?thanks

Lenders have a duty of care to their borrowers. So worth speaking to your existing lender as well. To convince them of your intentions draw up a realistic detailed plan.