Morgage

[ciaran_05]

i have a 1000 credit cad debit against my name. i am going to apply for a morgage. if i agreed to to repay this would my application be successful? also what other factors may hinder a couple getting a morgage.

[factor-fiction]

Your lender will look at your credit score.
If you have a problematic credit history then i don't think paying off the £1000 debt will dramatically improve it, and certainly "agreeing to repay it" is not likely to be sufficient.
But if your credit score is good and the £1000 has not been outstanding for long then the debt shouldn't in itself be a problem.
The lender will also look at your income (including how much is regular pay and how much is overtime), job status (temp/permanent)

[boxtops]

I agree with factor - why not pay £3 to one of the companies like Experian, and have your credit rating checked anyway, before you apply for your mortgage? You can then see that everthing is OK - your mortage company will inevitably do this before they make a decision, so it's good to make sure everything is OK first. If you have a credit card balance - and £1000 is not a large debt in the scheme of things - and you have been paying regularly on time, that should be in your favour with your credit rating, rather than against you. (People who never use credit sometimes find it more difficult to get credit or loans, because they are unknown quantites to the lenders.)

[sara3]

I assume you've looked into what kind of deposit you'll need, what income you need compared to the loan you're wanting, and what the repayments will be.

is it do-able?

[boxtops]

Looking at the other part of your question, being in permanent work is useful - I was on a fixed short-term contract for a while and because I couldn't evidence that I expected to be in work at the end of the two years, I became a poor risk.

[ciaran_05]

we have been to a morgage advisor and he advised that on our incomes we could borrow more than enough for the house we want. i joined experian and it showed up the 1000 debit from 4 years ago. if i settled this debit will i get the morgage? we have nothing else against our names.

[boxtops]

I don't think that would make any difference, unless the Experian entry showed the £1000 debt was a bad debt and never paid off? In which case you probably can't go back and set it right now, but you would need to seek advice on that. If your mortgage advisor says you can get the mortgage, then they need to advise you if this outstanding loan would go against you. If you have been a bad payer in the past (which I think I think you mean, apologies if this is not what you are saying) then the mortgage company will naturally be more cautious. They want to know you will pay each month every month, not fall behind.

[ciaran_05]

this is a debit that i didnt pay. i am willing to pay now. apart from this debit i have been a good payer and the morgage is with my own bank of which shows i always pay direct debits always. we dont need a deposit as the builber is going to pay the deposit. this is a scheme my bank is running with the builder to shift unsold new houses and give first time buyers a chance to enter the housing market.

[Eve]

They will be more interested in what you can afford than your incomes etc... so will probably look at your financial situation in general.

You might earn enough but they will take into account all your other outgoings including other repayments.

It might be that they put a condition on your mortgage that you have to have paid the debt back prior to drawing down the mortgage advance but depends on your situation.

[R1Geezer]

The basic issue is that you are inherently a bad payer. If you settle now, great but that will only demonstrate that you have only paid it because you needed a mortgage. That will not change your credit score because that looks mainly at how you manage credit agreements. Clearly you miss payments, no lender likes that.