Looking to clear debt & get a mortgage!

Alexander28

Hi, first time poster.

At the current moment, I'm banking with Santander, got a credit card with them, with around £3,000 on it, I also have a Barclay Card with around £500 on it, the latter will be cleared this pay, and the Santander will be cleared by the end of the year.

My credit rating has never been the best. I've got the last of my paid of credit coming off in December (After 6 years). The credit cards will be finished and paid off as well. So by the 1st January 2017, I'll have 0 debt (Hopefully) and will start saving each month for a mortgage deposit. Now my question is, will by a year in January (2018) my credit be build back up and able to get a mortgage with my OH?

Thanks for any advice or help.

National_Debtline

Hi Alexander28 and welcome to MSE,


It is good that you have a clear plan to clear your debts and start saving, but unfortunately, it is a difficult to say what your rating will be in the future and whether that would be sufficient for a mortgage. Each bank has their own formula to assess your credit worthiness and they now also check details such as spending habits and deposit ratio. All of this will impact your ability to get a mortgage.


Remember your credit file is a 6 year rolling document, so if you have some defaults or missed payment history that is 6 years old and about to come off that will help your credit rating. The credit cards that you have now will still show - just with a zero balance. Make sure that you are on the electoral role, not financially associated with anyone you don't want to be and being in control of your credit/ finances - all of this will help your credit worthiness. Fingers crossed you can get to where you want to be soon,


Laura
@natdebtline