Mortgage - Credit History Question

[Cyder]

So I have a fairly checkered past when it comes to credit history. While I was a student I would often miss payments or make late payments and had a number of cards and overdrafts (no CCJ's or the like thankfully)...

I'm now in a situation where I've paid off all my credit cards except one with a small balance on it and I have a student overdraft I'm chipping away at. I also haven't missed any payments for at least a year. (God bless working full time!).

So now I'm starting to think about mortgages and realise that my incompetence financially in the past won't help my cause. But a question for the financial bods in the room, when the credit check is carried out does your recent history get a higher weighting than your history from a few years back?

Or potentially would I have to wait until I've been a good boy for 6 years (I think it is) when in theory my credit history would be 'clean' if I carry on as I am?

Thanks.

[PugwasHDJ80]

Get a copy of your Experian and Equifax files- if you search their websites carefully you will find the option for the "cheap" statutory reports. These will allow you to see any data that a lender sees and show you any inaccuracies that may be present.

In general- CCJs, Defaults (this is a formal default- not "missed a payment or two" default like some credit card Co.s threaten you with), and bankruptcies will stay on you credit file for 6 years from date of fault after this they disappear pretty much forever.

With respect to missed payments; all your accounts will have a full account profile- this will show when the account was opened, the max allowed crediit, current balance, and last payment date (and how much)- it will also show if the account is open, settled, defaulted etc. It will usually have a payment "profile" which shows what has happened with your last 8 payments- ie where they on time (in which you'll have 8 ones whcih means paid when due), or if you missed one, then you will have 2s or 3s (for 2 months or 3 months overdue). 8 or over is a default on that account.

They also include a payment outline detail- showing how many times you have been overdue in the past 6 and 12 months (ie just a summary of the above data)- i'm pretty sure this only goes back 12 months but i can't be 100% without going to the office to check! someone on her will know though......

HTH

Basically if you havent been late with any payments for 12 months then you'll be fine, subject to the above proviso....

edited- for spelling, syntax, grammar, sense- basically the whole shhbang really

Edited by PugwasHDJ80 on Tuesday 25th October 15:08

[Cyder]

Thanks that's really interesting to know. I will go and have a scout around the various credit agencies tonight and see how things look.

Now to continue saving for that deposit.

[sc0tt]

I had a history much the same as yours, the missus had none.

We got a mortgage no problem in January.

Saving the deposit is the hardest bit. Spending it all in one transaction is gutting.

[Sarnie]

sc0tt said:

Saving the deposit is the hardest bit.

This is the key. The size of your deposit will have a bigger affect on whether you can secure a mortgage.

Your history is not much of a concern as you have no defaults or CCJ's and no missed payments in the last 12 months.

[Cyder]

Thanks, just looking around now for decent savings accounts and ways to save a bit (lot) of extra cash.