Couple of questions about credit file

lookstraightahead

Hello All


After years of debt on credit cards which has now all been paid off, my husband and I accessed checkmyfile yesterday for both of us, in an attempt to see where we stand, and to give us time to organise ourselves prior to applying for a mortgage in about a year (we have both had mortgages before, but we rent at the moment).


First things first, we are looking at my husband taking out a mortgage in his name only, as my income is adhoc (although I earn about £1000 a month). He owns a company, has done for about 8 years, and he has financial records.


Apart from the debt, which was an eye watering £90000 between us (paid off in full about two years ago, through hard work and slog), the only 'adverse' credit is a payment on one of my cards that was missed 3 times when we moved house, 3 years ago (we had actually paid it off we thought but interest had accrued - by about £6). Stupid I know, but there it is. Apart from that, both of our credit reports are showing:


No debt - cleared roughly two years ago
Both on electoral role
All payments over the last six years paid on time (apart from the one above)
No CCJs etc (never has been)
Just for the record, my credit score (checkmyfile) is coming out at 736 and my OH at 925
No dependents


I'm just wondering ....
1. Is it possible to take out a mortgage in just one name (we are married, it's a second marriage for me)
2. How much impact will my late payment make
3. We still have lots of credit cards, all clear, should I close some? (some of them I've had since I left school in 1985 ....)


Any thoughts very welcome. As I've only been concentrating on paying off debt I'm struggling with making financial decisions going forward.


Thank you

[Deleted User]

To answer your points:

1. Yes. But that means that the mortgage will only be in one persons name and "could" make things complicated (or easier - it depends) down the line should any drastic relationship changes occur

2. Pretty irrelevant compared to a £90k debt only cleared in the past 24 months, but still possibly affecting things

3. Depends - how many and what are the limits and balances on each of them?

Also, ignore the credit scores.

lookstraightahead

Thank you.


The limits between all of the cards are at about £100,000. We have ... lots, I have 8 and my husband about 6. They are all clear, no debt on any of them.


I'm afraid that the previous debt will bite us on the bum. We are looking at putting down about a 40% deposit and only going for about twice my husbands income, not sure if that helps, or if we will be better waiting 6 years and just saving like mad (although will have to rent in the meantime). Although I think any mortgage application will ask if we've EVER had any debt.

[Deleted User]

lookstraightahead wrote: »

Although I think any mortgage application will ask if we've EVER had any debt.

Unlikely. But it may well ask if you have ever defaulted on debts.

lookstraightahead

Ah, yes, I used my ipone it must have stayed logged in I thought I'd lost my password. Anyway, I will use this username from now on!

[Deleted User]

You don't have to wait for all debt to drop off your file.

You just need to get to a place where a lender will see you as a safe bet. Historic debt is not particularly a problem, if settled.

Defaults are a problem, but get less so as they get older.

lookstraightahead

So another year will probably help, and then find a financial advisor (which we will need anyway as husband has his own business).


I don't mind the wait, just not having debt is very freeing but I would rather pay a mortgage than rent for ever.


The default on the payment on my credit history was another reason the mortgage could just be take out in just his name, although we are linked financially.