Mortgage Application Nerves

silly_girl_debts

Hi All,
I am looking for some advice as a very nervous first time buyer. I have my heart set on a property that I really like but I am worried that I will not get a mortgage.

When I was younger I ran up a bit of debt (circa £4000) and defaulted on these. I know stupid, and totally embarrassing. I came to a settlement on one of these and no pay a small contribution every month to pay this off with a dreaded debt collector. The other debt was never settled and remained on my file until recently when it dropped off my credit file. I am now at a point where my credit score and report is excellent but two things are worrying me in particular to my mortgage application
I am aware I need to declare my fixed outgoings in my application and I’m worried that this ‘debt collection’ payment will affect my application negatively even though its is not registered on my credit file.
I am also concerned that the broker will suggest the bank where the account was never settled and pursue me for this money.
I would be really grateful if you could provide some advice about what to expect or any similar experiences and how that worked out for you.

Thanks
SGD

ACG

90% of the business I do give or take is for people who have bad credit. Most of those are in exactly the same situation as you, the defaults came about years ago due to not knowing better.

Some are still paying them off, others are not. In either case I would say probably 99% go on to get a mortgage witha large portion at normal rates.

Assuming it passes affordability I would say you should have options, but without seeing your credit reports it is difficult to give any assurances. But if I was a betting man, it all sounds old enough to not be too difficult to overcome.

ap1985

Have you spoken to a mortgage broker?

If you have an agreement with them they shouldn't be able to really do this!

I had a bad credit file with mixed defaults and a CCJ. I got approved for a mortgage from a high street lender last September as my defaults and CCJ were due to drop off at the end of the year. The lead up to my mortgage application I ensured that all my finances were clean and so were my bank statements. I am sure you will be fine, have hope