Bad credit affecting mortgage application

Indoubt2024

Hi, I had a Credit card with UB and the account is now closed. I didn’t repay any money on it for nearly a year stupidly but the last 5 months I have been repaying weekly and plan to have it cleared up in 6 months all going well. I recently got engaged and am now having nightmares about the credit score when it is time for us to be applying for a mortgage, I haven’t mentioned this debt to my partner as I’m embarrassed by it. We won’t be applying for a mortgage for another 2/3 years but has anyone been in a similar situation and did this hold back your mortgage application?

callaway92

Be open with her literally right now and get it cleared. Chipping away at it actually won't help, because it's only when it's paid off will the 'timer' start for everything to clear from your credit report (I think it's there for 5 years after it's cleared). So immediately that'll be flagged when you apply anyway.

I'd do everything possible to clear it now instead of in 6 months time…and over the next few years then save correctly.

You will almost certainly not be able to get a joint mortgage otherwise.

Be honest with her now though, because if she starts chatting about buying a house in the next 12-18 months you'll have a pretty ugly conversation.

Buddy Bubs

Clear it all ASAP. If you can't clear a credit card you can't save for a deposit for a house.

The bad credit rating will be there for 5 years from the month you settle in full.

I honestly can't see you getting a mortgage until then, I hope you can and I'm proven wrong

Jim2007

Your entry in the CCR is not going to go away until the debt has been settled and a five year period has elapsed. So the sooner you settle the debt the sooner the countdown begins.

Depending on your circumstances and those of your partner, a bank may consider giving you a mortgage before then, but it would be a big ask. What it comes down to is whether or not they are willing to take a bet on you despite the fact that you broke a previous credit agreement. So all may not be lost.

Regardless, you need to have a conversation with your partner, because unless you can string them along for five years plus, this is going to come up.

Indoubt2024

Thank you all, I have now told my partner and we agreed it was my first priority to get paid back… I also have a loan out for my car and haven’t missed a payment yet over a year on and my previous car loan I never missed a payment on it either. It is the credit card I was so bad with…

whitelaurel

I’ve seen a good few cases of people getting mortgages before the 5 years are up. But depends on a heap of different factors, all hope isn’t lost but it will be a bumpy road. Best bet as others have said is to get that timer started by paying it off.