Credit Limit Query

scottjack

Morning all,

Just a quick one, my girlfriend and myself are looking at getting our first place together and having never had a mortgage before, we're a bit unsure of how mortgage companies rate "bad credit".

Is adverse credit only based upon CCJ's/defaults?

We've never missed paying a bill, although some have been late, along with spending a lot of time OVER our over draft limits and paying charges/interest for being over our limit. I've been turned down for 2 loans and one credit card in the last 8 months, but I imagine that is because I already have 22k's worth of loans/credit cards already (although I am paying this all off with an inheritance this week).

Qual123

they look at everything, not just your finances, but your employment status etc. most now use companys to do it for them and just get a score returned on you. they will lend on this basis. you can get a copy of your own credit file for £2 and then you can check it for yourself. other factors on lending would be your income, ie can you afford the repayments and also your LTV. alot of banks dont like 100% martgages if your below 80% it cheaper and easier to get.

sarkin

I think you should look at paying back your debts before taking more on. The lenders will look at this

scottjack

My debt (in the sig below) will be paid off this week so that's fine but my girlfriend has about 12k which will need to be taken into account.

As I say, I'm only looking into the first things about it, but we have incomes of 39k combined, debt of 12k, plus I lease a car for £190 a month. I'll have a deposit of 10k to put down so we are looking at about a 90% LTV.

I'll have to get a copy of each of our credit files and take a look at what's on there as well.

Dan_Collins_2

You will find that unless you go two months into arrears or stay over your limit for over a month you credit file will not be impacted, depends on the lender though.

It may be worth waiting until you credit file shows you have cleared your unsecured debt. You are correct in saying they may have turned you away because you have a lot of unsecured.