First time buyer after past debt

bookworm57

Hi all,

This is my first time posting so apologies if this is in the wrong place but I’m just hoping someone can help to put my mind at ease. 

A few years ago in my early twenties, I made a catalogue of stupid mistakes and got myself into a payday loan cycle - all of which were paid off 6-7 years ago and are no longer showing anywhere on any of my credit reports across the various agencies (credit karma, MSE credit club, ClearScore, checkmyfile). I also had one loan with Provident where I had an arrangement to pay and was also paid off in full. This is no longer showing on any of my credit reports either (I assume due to them withdrawing from the lending market), the only record of this now seems to be on my bank statements and the final payment  was in March 2020. For the last few years the only form of credit I have used is a credit card which I always pay off in full each month and an arranged overdraft which I haven’t dipped into for the last 6 months or so. 

I am a single first time buyer on £50k salary and expect to be in a position to buy at the end of this year/start of 2026 (at the moment prices where I’m looking are about £180k - £200k and will have £25k deposit). My question is will these past issues affect me when I come to apply for a mortgage? Any other advice for someone in my situation would be appreciated!

Thanks in advance!

Mark_d

Your credit reports sound perfect.  You've got a good track record with credit cards.  Your mortgage provider would have your property as security.  So I see no reason why you'd have issues with your mortgage.

ACG

You sound like you will be fine. Dont worry.
But if you are, speak to a broker. 

freesha

You said it yourself - they are off your credit records. So how would the lenders know?

firsttimebuyer29rp

They aren’t on your credit records anymore so I wouldn’t worry. Sounds like you’re managing your credit well in recent years which is the most important thing. 

You’ll also have a 10%+ deposit so sound like an ideal candidate for a lot of lenders. 

Good luck!!

Jemma01

I wouldn't worry about bank statements, they'll be used to prove that the 50k was collected through a salary or other legal means. (That was done by my solicitor not the bank, I had two solicitors, one dedicated for the loan). I'm very private, so always maintained a savings account since I was 16, so I used that to prove my funds, they didn't see checking account except for either 6 or 12 months statements. The loaning bank HSBC asked for my 2year returns on my company and I'm pretty sure 6 months worth of bank statements only.