Mortgage with previous bad loan.

Mj2016

Previously had a written off loan from the credit union in which I've cleared now(roughly a year before mortgage application). Currently no loans and saving regularly. Both me and my partner full time. Her credit has always been good and always saving. Will we be declined due to my silly mistake, am I wasting my time even going for a mortgage, we have the 10% deposit and so on.

Homer

For a small fee you can run a full credit check on both of you that will show your credit score. I would do that now before starting the process of approaching the banks/brokers.

Mj2016

Homer wrote: »

For a small fee you can run a full credit check on both of you that will show your credit score. I would do that now before starting the process of approaching the banks/brokers.

I have with the icb and came back clear. But as of early 2017 all loans in the credit union can be seen by any bank, and it'll show as written off.

notharrypotter

Mj2016 wrote: »

Previously had a written off loan from the credit union in which I've cleared now(roughly a year before mortgage application).

just to be clear.
You had a loan on which you had difficulties repaying?
The credit union subsequently wrote this off and recorded it as such?

However you have since repayed the loan in full?

If so I would suggest contacting the credit union to get a letter stating this.
Also get them to update your credit record to reflect that the loan has since been satisfied.

Then approach the financial institutions.

Mj2016

notharrypotter wrote: »

just to be clear.
You had a loan on which you had difficulties repaying?
The credit union subsequently wrote this off and recorded it as such?

However you have since repayed the loan in full?

If so I would suggest contacting the credit union to get a letter stating this.
Also get them to update your credit record to reflect that the loan has since been satisfied.

Then approach the financial institutions.

Thank you for your reply. Yes exactly how it is.

I already have the letter and they've updated this too. I was young and out of my debt when I got the original loan, so failed to keep up payments.

Silly mistake in which I fully regret now. Really thinking this will have a negative backlash and result in a mortgage decline.

Henry Ford III

I think you'll be fine. You got into financial bother but recovered and made the situation good again.