FTB debt/late payment/own bank or broker

Rosiebee97

Hi

I am a first time buyer i have 5% deposit on £160k house, I will be applying for a mortgage in the next couple of months. I have a few questions if anyone can help I would appreciate it.

I have one late payment on my credut file from 2011 which was on a Very catalogue credit account, the repayment was less than a month late. I got confused and paid another catalogue payment twice and missed the Very repayment until I realised my mistake. Should I close the account to remove this from my file? Is this going to seriously affect my application? I would prefer not to close the account as they offer a good credit facility where you can pay for items in 3 monthly installments with no interest.

I have £9k on credit card debt, I have open lines of credit available totaling around £32k (credit cards and 2 catalogues). I don't know weather to reduce my available credit by closing accounts or leave them open so that my credit usage ratio is better. I will be able to clear the £9k but not until a few months after my intended mortgage application.

Should I go to my bank Natwest who I have banked with for 9 ish years or I was considering London and Country as they do not charge?

Any help appreciated

SavingSteve

Closing the account does not remove the record, if it were that easy everyone would have clean credit records!

Btw, you don't actually have a 5% deposit. You have a nil deposit and have borrowed 9k on credit cards. Personally Inthink you'll struggle to get a mortgage until you have savings greater than your debt.

London and Country are not the type of broker you want, they don't handle non standard cases very well. Find a local independent.

Thrugelmir

£8k deposit and £9k of debt. Not a healthy financial position to be honest.

Always a good idea to close unused credit lines. Just keep accounts open that you actually require. As potentially may influence the outcome. Anything you can do to improve your application the better.

ACG

Having £9k of debt is not a problem if it is affordable.

Its hit and miss whether or not Natwest would do it, it fits criteria but theyre not great with less than 10% deposit. Regardless, im sure there will be a lender out there for you.

Rosiebee97

Thank you ACG, sorry not sure how to reply to you directly. It is useful to know about Natwest not been good on less than 10% deposit. My credit cards are affordable, I earn a good wage and they are on 0% interest deals. Thanks again

AnotherJoe

The point is, many lenders will regard you as simply having borrowed the deposit on credit cards. Because you have.