Hi all,
My husband and I are hoping to buy our first house next year. We're satisfied that we'll have a good deposit (20%) by the time we apply for a mortgage and we both earn good money so we're confident that we'll be able to pay the mortgage.
I just have a couple of concerns, mostly relating to my credit history. It's a bit of minefield in terms of information. I've been reading pretty much anything I can get my hands on relating to credit and mortgages. Some of it is conflicting and I was hoping some of the people on this forum might be able to give me some pointers/advice.
When I was at university (3 years ago) I was pretty irresponsible with money. I'm probably not the first student to get into a bit of trouble (and certainly won't be the last!) I had a credit card which I have paid off, I also ran up a debt of £1,270 on a current account which is listed as a default on my credit file. This is due to expire in December 2014 and has not been paid off. Once I left university I really knuckled down and made sure I paid everything on time and didn't go into my overdraft. I paid everything on time for the last 3 years with no problems. I have no CCJs/judgements and no other outstanding debts.
It probably sounds ridiculous but I forgot about the current account and only remembered when I checked my credit file. Obviously I am very keen to sort this out before applying for a mortgage next year.
I have 5 good accounts on my file which are all healthy and have no defaults, including 2 bank accounts and 2 credit accounts. The only big issue is this former current account which was closed by the bank in 2008. I can't find any documentation with the account number and sort code on it and the lady at the Natwest couldn't find any record of it in their system as it has been closed. This is making it impossible to settle the balance and put my credit report right.
I'm happy to settle the balance in full but I'm not sure what I should do next and how this will impact upon a mortgage decision. I know a default is very bad! The account is due to 'drop-off' my credit file in December 2014, would it be best to wait until then before applying for a mortgage or might it be possible to get a mortgage before then as it has been quite a while since the account was closed?
Another question I had was if I pay the balance in full will the default still expire in December 2014 or will the action of paying this debt off mean that it will stay on my file for longer?
If anyone has any tips about settling defaults on closed account when the bank can't find your account info that would be great. Unfortunately Natwest weren't very helpful when I asked them and basically told me to go away and come back when I'd found the account number and sort code (which I don't have).
Apart from this my credit file is looking pretty good, I've just been approved for a credit card which I am planning to use for small purchases over the next year and pay off by Direct Debit to improve my credit rating. I had no problem renting my place and passed all the credit checks without any problems. I'm also on the Electoral Register.
Any advice anyone could offer would be fantastic!
My husband and I are hoping to buy our first house next year. We're satisfied that we'll have a good deposit (20%) by the time we apply for a mortgage and we both earn good money so we're confident that we'll be able to pay the mortgage.
I just have a couple of concerns, mostly relating to my credit history. It's a bit of minefield in terms of information. I've been reading pretty much anything I can get my hands on relating to credit and mortgages. Some of it is conflicting and I was hoping some of the people on this forum might be able to give me some pointers/advice.
When I was at university (3 years ago) I was pretty irresponsible with money. I'm probably not the first student to get into a bit of trouble (and certainly won't be the last!) I had a credit card which I have paid off, I also ran up a debt of £1,270 on a current account which is listed as a default on my credit file. This is due to expire in December 2014 and has not been paid off. Once I left university I really knuckled down and made sure I paid everything on time and didn't go into my overdraft. I paid everything on time for the last 3 years with no problems. I have no CCJs/judgements and no other outstanding debts.
It probably sounds ridiculous but I forgot about the current account and only remembered when I checked my credit file. Obviously I am very keen to sort this out before applying for a mortgage next year.
I have 5 good accounts on my file which are all healthy and have no defaults, including 2 bank accounts and 2 credit accounts. The only big issue is this former current account which was closed by the bank in 2008. I can't find any documentation with the account number and sort code on it and the lady at the Natwest couldn't find any record of it in their system as it has been closed. This is making it impossible to settle the balance and put my credit report right.
I'm happy to settle the balance in full but I'm not sure what I should do next and how this will impact upon a mortgage decision. I know a default is very bad! The account is due to 'drop-off' my credit file in December 2014, would it be best to wait until then before applying for a mortgage or might it be possible to get a mortgage before then as it has been quite a while since the account was closed?
Another question I had was if I pay the balance in full will the default still expire in December 2014 or will the action of paying this debt off mean that it will stay on my file for longer?
If anyone has any tips about settling defaults on closed account when the bank can't find your account info that would be great. Unfortunately Natwest weren't very helpful when I asked them and basically told me to go away and come back when I'd found the account number and sort code (which I don't have).
Apart from this my credit file is looking pretty good, I've just been approved for a credit card which I am planning to use for small purchases over the next year and pay off by Direct Debit to improve my credit rating. I had no problem renting my place and passed all the credit checks without any problems. I'm also on the Electoral Register.
Any advice anyone could offer would be fantastic!