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    • smallbusiness
    • By smallbusiness 11th Mar 17, 7:47 PM
    • 12Posts
    • 1Thanks
    Healing Mortgage Arrears Record
    • #1
    • 11th Mar 17, 7:47 PM
    Healing Mortgage Arrears Record 11th Mar 17 at 7:47 PM
    Considerably embarrassed about this but I was 3 months in arrears of my mortgage for over two years. I've only just been able to pay off all the arrears so I'm now up to date with my payments.

    I just wanted to ask if anyone has had any experience or any thought on how long I will have to wait in order to apply for a decent amount of credit - about 12,000 - 20,000 unsecured loan? Are we looking at 3 months, 6 months or a year of up to date mortgage payment history?

    I understand there is no definitive answer and there are so many other variables to consider but any thought out poke in the dark would be much appreciated. Cheers.
Page 1
    • Westminster
    • By Westminster 11th Mar 17, 7:49 PM
    • 844 Posts
    • 516 Thanks
    • #2
    • 11th Mar 17, 7:49 PM
    • #2
    • 11th Mar 17, 7:49 PM
    It depends on what kind of interest rate you are prepared to pay on your new unsecured borrowing.

    The longer you wait, the lower your likely rate.
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    • ACG
    • By ACG 11th Mar 17, 8:02 PM
    • 16,831 Posts
    • 8,781 Thanks
    • #3
    • 11th Mar 17, 8:02 PM
    • #3
    • 11th Mar 17, 8:02 PM
    I agree with the above, there is the potential to do it sooner rather than later but the rates may be higher.

    You could probably do secured now (subject to the equity) as you have not technically gone any further in arrears in the last few years, it has jsut taken you a while to clear the arrears you had.
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    • Thrugelmir
    • By Thrugelmir 11th Mar 17, 10:57 PM
    • 58,462 Posts
    • 51,842 Thanks
    • #4
    • 11th Mar 17, 10:57 PM
    • #4
    • 11th Mar 17, 10:57 PM
    24 months to clear 3 months of arrears. Doesn't look particularly good. In the context of a request for a 20k unsecured advance. Secured maybe the better option. Though this comes with obvious downsides.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • smallbusiness
    • By smallbusiness 12th Mar 17, 9:41 AM
    • 12 Posts
    • 1 Thanks
    • #5
    • 12th Mar 17, 9:41 AM
    • #5
    • 12th Mar 17, 9:41 AM
    Thank you all for your input, it's really appreciated!

    I think the secured loan option is off the table as I intend to sell the apartment by the end of the year. I'm willing to take a relatively high APR, preferably nothing higher than 25-30% with the option of settling early without penalty.

    Your comments have been very helpful, I think if I can, I will wait the full 6 months before I take a loan out, looks like I'd be better off asking for 12-15k.
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