Mortgage after clearing debt

septemberbaby

Hi

I was Just wanting some advise / reassurance or I suppose stories of similar situations.

We are looking to move home soon to a bigger place and apply for a new mortgage. I stupidly was in two overdrafts for the last couple of years paying a ridicolous amount of daily charges and also had a small loan which have all since been cleared off recently.
So i have no debt and i had no late payments within that time but my bank statements at the moment would look really ridicolous.
We are thinking the best option is to hold off for 3 months so that the bank statements really look the part when we apply.

What are thoughts on this? And also has anyone had success following clearing debt. None of it was late just i seemed to have used up to my limits on everything for quite some time.

I just needed to sit down and be honest with myself about it and make some changes and I will never ever have an over draft again or anything like that as it is not needed.

I have paid of my credit cards and everything else. I have closed down bank accounts that i no longer use too as these were silly to have had in the first place.

Really keen to get moving home as soon as possible

Thrugelmir

septemberbaby wrote: »

I just needed to sit down and be honest with myself about it and make some changes and I will never ever have an over draft again or anything like that as it is not needed.

Having worked hard to get yourself back on an even keel. Take the opportunity to get your finances into an even better state. Rather than immediately burdening yourselves with the costs of moving house and an increased level of debt. Besides which the property market generally slows down in the autumn the lead up to Xmas.

septemberbaby

Thank you for your reply, appreciate that..

Do you think In January / February time it would be safe to apply then?? Or am i est to let 6 months pass so that my credit file is fully updated and score is improving??
As i only just registered properly for the electoral role and apparently that wont take affect on my credit file until Feb time?

kingstreet

With many lenders it won't matter because you can simply tick the box to say something will be repaid on or before completion.

There are only one or two lenders who will take into consideration in affordability something visible on your credit file even if it is to be, or has recently been repaid.

septemberbaby

Thanks for the reply on this.

Probably will start the proccess in January when a few months of stability behind me....

Credit score on experian is good but would prefer excellent

Dont suppose you know which lenders to avoid for purposes of whats on the credit file as such

kingstreet

septemberbaby wrote: »

Dont suppose you know which lenders to avoid for purposes of whats on the credit file as such

Of course I do.

Let's hope someone who isn't authorised/regulated does too and will tell you about them because I can't.