Getting a mortgage after a history of debt

Financeadviceneeded

ScottishSaver14 wrote: »

Is that an overdraft in addition to the loan and CC?

It's great you're clearing things at that rate, but with the greatest of respect that's a lot of debt and PD loan use for someone with a significant salary. In terms of mortgage lenders, they'll ask the same questions. However, as long as you can show that you're paying it down etc then like other posters have said it's not the end of the world. I'm sure a local broker would be extremely useful when the time comes!

Yes the OD is in addition to the cards and loan.

Unfortunately I haven’t always earned this level of salary (only for the last 2 years) and things had escalated a lot by the time I was on more income, which is why I’m only now just about getting it under control.

I don’t plan on having the OD or the CC balances left by the time I get to a mortgage application stage, I’m more concerned about the historic PDL’s.

Thanks for the advice all!

Financeadviceneeded

amnblog wrote: »

Sounds to me like Habito are laying in on with a trowel here.

The outstanding debt is manageable on your income.

Provided you do not have defaults or CCJs and you are not in the habit of late payments you will have a number of options.

Hopefully that’s the case. Definitely no late payments or CCJs. Sounds like I just need a good broker.

Thank you

ACG

Having debt in itself is not a problem. The issue arises if you are missing payments. The fact you have had a large amount of debt and brought it down of your own accord, I would argue is not a negative.

The bigger issue is probably the pay day loans, there are lenders who will consider no matter how recent they are, a few more will drop in if you have not used them for 6-12 months.

I would be pretty confident you will be eligible for a mortgage at normal rates.