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Mortgage - How long before bad history is "forgiven"

Hi all, hope you can help...

About to come into cash sum that will clear all existing debts including current mortgage.

Times have however, been tough for the past year with many late payments (nothing over a month, just a few days on each occasion) over many cards, loans and my mortgage. Total borrowings including current mortgage total

300k.

Would like to buy a house I've seen for 277k, requiring a mortgage of

150k. At that time, no other borrowings will exist what so ever.

I can pay cash for the said house next month and sell my existing property afterwards, I then have 18 months in order to obtain a mortgage for 150k before a tax bill, due Jan 07.

I have no CCJ's.

Is it likely that my recent bad form will prevent me from obtaining such a mortgage, either immidiately following the clearance of my debts or at some point over the next 18 months, and does anybody have similar experience?

Do the banks care more about availble equity rather than past history when deciding to lend, and will they take my clearance of all debts into consideration?

If it helps, my take home is around 3k per month and I would be left with around 2k after general expenses and a mortgage of that size each month.

Cheers,

Paul

Reply to
Paul Kwazakki
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"Paul Kwazakki" wrote

Loan to value matters, yes, and it helps if you have a big deposit. Short-term debt like credit cards "disappears" relatively quickly - I think lenders can see about a year's worth. After that, it should look clear. If you defaulted but are in a position to settle, you could go back to the lender with an offer to do so as long as they amend their credit submission on you to reflect the current status.

Have you thought about part-paying off your existing mortgage so it's down to the 150k you need, then porting it to the new property? This would save you trying to remortgage and you would also get to repair your recent mortgage history.

Reply to
John Redman

"John Redman" wrote in message news:d4jp6l$ob3$ snipped-for-privacy@newsg2.svr.pol.co.uk...

John,

Thanks for the reply. Had a quick conversation with Intellgent Finance, who say that moving the mortgage to a new property is not possible, instead the process would involve re-application just as if I was a new customer.

Bummer. My current mortgage is 140k anway, unsecured debts are 160k.

Paul

Reply to
Paul Kwazakki

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