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advice for preparing for mortgage application with bad credit
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Belle09
Posts: 2 Newbie
Hello!
I am in the process of sorting out my finances in preparation for applying for a joint mortgage (probably Nov 19ish so about 2 years time).
I have previous bad credit from poor management really.
In Nov 19 on my file I will have...
11(!) missed payments over 6 years on 4 accounts (all random and spread out not reoccurring) from never setting up direct debits and uni and forgetting to pay (idiot!)
a payment arrangement which is now paid off and closed for a shopping account.
and a history of payday loans mainly lots in 2017 when previous relationship ended and I had to move but all paid on time.
When I come to apply I will have had a clear file for 2 years with no outstanding debt at all for approx a year+.
Do you think there's a strong possibility I won't get approved / what can I do to help my report look better to lenders.
Thanks for all your help!
I am in the process of sorting out my finances in preparation for applying for a joint mortgage (probably Nov 19ish so about 2 years time).
I have previous bad credit from poor management really.
In Nov 19 on my file I will have...
11(!) missed payments over 6 years on 4 accounts (all random and spread out not reoccurring) from never setting up direct debits and uni and forgetting to pay (idiot!)
a payment arrangement which is now paid off and closed for a shopping account.
and a history of payday loans mainly lots in 2017 when previous relationship ended and I had to move but all paid on time.
When I come to apply I will have had a clear file for 2 years with no outstanding debt at all for approx a year+.
Do you think there's a strong possibility I won't get approved / what can I do to help my report look better to lenders.
Thanks for all your help!
0
Comments
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what can I do to help my report look better to lenders.
Simple, maintain your personal financial affairs impeccably. With every month that passes your history ages.
To aid your cause further. Build your deposit as much as you can. Saving in itself is a sign of responsible financial management, and therefore will reflect on you as a potential borrower.0 -
Thank you! I am already doing this and will have a great, clean 2 years on my file when I come to apply. Will all the adverse things in the past make it likely that I will not get approved though?0
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Lenders have different internal policies. Criteria can change at any time. Suggest you use a mortgage broker to guide you when the time arrives. There'll be a lender out in the market somewhere for you.0
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The bigger % deposit you can get together, the less risky you are to lend to for a mortgage and so it will help if you can save in the region of a 20-25% deposit.
If you can live very frugally for the next 2 years and do even better that can only improve your chances.
Good luck in your savings journey!0
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