Help and advice needed!

Martin3003

Hi guys, new here!

Myself and my partner have recently been told that our long term landlord is selling the property and therefore we started looking at a mortgage. I was declined for a decision in principle on the terms of having adverse credit. I had a dispute a few years ago with a catalogue company and I subsequently started to pay them £20 per month out of spite.

I recently learned that in the last few months that this has been recorded on my credit file as "6" meaning payment up to 6 months late.

I'm wondering, shall I just clear the remainder of the balance so that this is settled, or will this not affect my credit score? Thinking of the best possible ways to bump up my score in the shortest possible time to help with a mortgage application.

Any suggestions welcome.

KatrinaWaves

Martin3003 wrote: »

Hi guys, new here!

Myself and my partner have recently been told that our long term landlord is selling the property and therefore we started looking at a mortgage. I was declined for a decision in principle on the terms of having adverse credit. I had a dispute a few years ago with a catalogue company and I subsequently started to pay them £20 per month out of spite.

I recently learned that in the last few months that this has been recorded on my credit file as "6" meaning payment up to 6 months late.

I'm wondering, shall I just clear the remainder of the balance so that this is settled, or will this not affect my credit score? Thinking of the best possible ways to bump up my score in the shortest possible time to help with a mortgage application.

Any suggestions welcome.

It will help, but I wouldnt expect it to impact quick enough for this current house.

Martin3003

Thank you.

G_M

Martin3003 wrote: »

Myself and my partner have recently been told that our long term landlord is selling the property and therefore we started looking at a mortgage. .

Do you mean you want to buy your landlord's house, or that if/when he sells it you want to buy and move elsewhere?

TBagpuss

Yes, clear that balance, and close the account.
It will still affect your ability to borrow as it will show as you having a history of late payments / defaults, but the amount of impact it will have will gradually reduce over time as it becomes a historic issue rather than a current one.

There are lenders who will lend to people with poor credit history but of course as you are seen as a higher risk, you will not get the best rates. If you speak to an all of market mortgage broker they should be able to give you a better idea of what companies might consider you, and will probably also be able to give you an idea of who soon you might start to be considered by the more main stream lenders, once you have cleared you debt.(or indeed, how much more of a deposit would get you to that point)