Question

I lived in the UK as a student for a few years and left the UK 2 years ago. When I left I had some unpaid bills, a credit card, an overdraft, and a mobile phone contract. In total I owed about £4,000.

I now live in Canada and am getting a mortgage to buy a house. Will the mortgage company check my UK credit? Will the unpaid accounts stop me from getting a mortgage?

Any advice is appreciated.

Paul

Answer

Paul,

Credit bureaus and credit reporting agencies can be different for different countries. So your UK accounts will not be reported on a Canadian credit report.

Can you afford to pay off the UK debts? Can you set-up a payment plan?

If you are applying for a mortgage in Canada, the lender will look at what credit accounts you have there, and if you have none, or your credit history is very short, as you have not been living there long, they could as for references from the UK to establish a credit history to see how you pay your accounts.

As a matter of course to just check your UK credit file is doubtful. However, if the lender does find out about the unpaid accounts, it is a reason to deny the loan.

How much of a deposit are you paying? Are you applying alone or with someone?

Many factors can come into play when applying for a mortgage.

I hope this helps.

Regards,

Jon

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