When you are looking to purchase a property and you need a mortgage to help you make that purchase, the first thing that you should do is access a copy of your credit file from www.experian.co.uk or www.equifax.co.uk both of which you can access for a one off payment of £2.
What you will then see is the level of information that the lenders underwriter will base their decision on to lend or not.
You should start with the basics, are you on the electoral roll which is a must, then look at your payment profile on all of your credit. What lenders would like to see is that you make your payments on time with no late or missed. Some lenders may take a view, but anything missed in the last six-months will count against you.
Lenders are more understanding on unsecured debts, but missed mortgage payments are to be avoided at all costs.
If you have credit defaults or CCJ’s, the main issue would be when they occurred. If they are more than two years old, then they maybe ignored paid or not, depending on the loan to value.
With Bankruptcy or IVA’s, yes we can help you after discharge, but it would after the third anniversary following discharge when normal lending terms would apply.
With Debt Management plans, a number of lenders have changed their lending criteria, and we can now help you whilst you are still in Debt Management and when you have been discharged.
This is such a fast changing market that even if you are refused a mortgage it is worth trying again every six-months to see if there have been any changes that may have a positive impact on your current credit profile.