Hi guys... partner and I are first time buyers looking to get a mortgage next year.
We are going to see a broker in january/february but i wanted to check here 1st as I am confused at what lenders really want?
Some people are saying lenders prefer it if you have lots of credit, pay only the minimum, have car finances etc etc.
But then when I read up on things I am told it is best to not have too much credit/debt, to pay credit off in full each month ?
I am worrying as I have some red late payments on my credit report from may 2007. These will drop off next May i am told? These were from orange mobile phone contract and a store card (£100 limit). I was in the middle of my finals at Uni at the time and was pretty niave. These are all settled around 4-5 years ago.
Since then i have had zero missed payments, have paid a loan off from Halifax (that i was given at the time in 2008 of £7000), cleared my overdraft from Halifax last year (£500) as I didnt want an overdraft.
I have one credit card to build my credit; a capital one building credit (£200 limit) which I pay off in full every month and never max out.
I have a littlewoods online account (clothing) £1500 limit I got about 1 year or so ago and pay this off in full each month.
My credit report still has warning in red for credit agreements I am assuming is from the late payments in 2007.
I earn £26,500, partner earns £30,000, both in NHS with increasing increments yearly. We dont own anything on finance/higher purchase. We have a £30,000 deposit for a house of £200,000.
He has a credit card, no late payments.
would I be denied the mortgage because of these late payments and because I dont have big credit card debts? I dont want credit card debts! Should I get rid of the littlewoods account?
We are 1st time buyers living in a family property with little outgoings
Any help would be extremely appreciated. x
We are going to see a broker in january/february but i wanted to check here 1st as I am confused at what lenders really want?
Some people are saying lenders prefer it if you have lots of credit, pay only the minimum, have car finances etc etc.
But then when I read up on things I am told it is best to not have too much credit/debt, to pay credit off in full each month ?
I am worrying as I have some red late payments on my credit report from may 2007. These will drop off next May i am told? These were from orange mobile phone contract and a store card (£100 limit). I was in the middle of my finals at Uni at the time and was pretty niave. These are all settled around 4-5 years ago.
Since then i have had zero missed payments, have paid a loan off from Halifax (that i was given at the time in 2008 of £7000), cleared my overdraft from Halifax last year (£500) as I didnt want an overdraft.
I have one credit card to build my credit; a capital one building credit (£200 limit) which I pay off in full every month and never max out.
I have a littlewoods online account (clothing) £1500 limit I got about 1 year or so ago and pay this off in full each month.
My credit report still has warning in red for credit agreements I am assuming is from the late payments in 2007.
I earn £26,500, partner earns £30,000, both in NHS with increasing increments yearly. We dont own anything on finance/higher purchase. We have a £30,000 deposit for a house of £200,000.
He has a credit card, no late payments.
would I be denied the mortgage because of these late payments and because I dont have big credit card debts? I dont want credit card debts! Should I get rid of the littlewoods account?
We are 1st time buyers living in a family property with little outgoings
Any help would be extremely appreciated. x
