Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • SassySaver88
    • By SassySaver88 12th Aug 17, 2:01 PM
    • 4Posts
    • 0Thanks
    SassySaver88
    Credit File for mortgage prep
    • #1
    • 12th Aug 17, 2:01 PM
    Credit File for mortgage prep 12th Aug 17 at 2:01 PM
    Hi
    New to this site
    Looking for some help....
    My hubby and I are thinking of getting a mortgage next year

    We have had adverse credit in the past.

    Im wondering what things affect your credit files and what things can I change to make it better
    Im under the impression that the actual score doesnt count?

    We just want to make sure were all nice and tidy once we start applying

    Thankyou in advance
Page 1
    • sourcrates
    • By sourcrates 12th Aug 17, 2:26 PM
    • 11,500 Posts
    • 11,096 Thanks
    sourcrates
    • #2
    • 12th Aug 17, 2:26 PM
    • #2
    • 12th Aug 17, 2:26 PM
    Hi,

    No late payments or defaults should be showing.

    You should not have excessive borrowing or you may fail on affordability.

    Be on the electoral role, dont change addresses too often, its all just common sense stuff really.

    Negative info stays on your file 6 years, so waiting until that has gone would help your application, you are correct in that the credit score is how the CRA views you, but they dont lend you money though, so from a lending point of view, its meaningless.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • cjmillsnun
    • By cjmillsnun 12th Aug 17, 5:15 PM
    • 103 Posts
    • 61 Thanks
    cjmillsnun
    • #3
    • 12th Aug 17, 5:15 PM
    • #3
    • 12th Aug 17, 5:15 PM
    I'm going to disagree with no late payments or defaults should be showing. I have six defaults and exchanged contracts last Thursday. My mortgage offer is from one of the bigger high street lenders at very competitive rates.

    However I would say nothing recent (within the last 4 years) that is adverse. Any defaults should be satisfied. Any CCJs again satisfied. If you can get to that stage, then you should be able to get help from the high street.

    I agree that excessive borrowing is a no no. Avoid payday loans and home credit like the plague.

    But you also need some recent history. A credit card that is used to no more than half its credit limit and paid off in full every month is ideal (especially as it costs you nothing - and if you can get a reward or cashback card can make you money or vouchers), along with a mobile phone contract (look at a pay monthly sim only contract and you can find something cheap). This combined with your bank account (not going overdrawn) should stand you in good stead.

    I do agree with being on the electoral roll, that is an essential.

    Last of all. You need a deposit. The more the better. Aim for at least 10% cost of the house and also look at putting another 5-6k aside for costs - conveyancers, searches, valuations, Stamp duty, moving, decorating all cost money and will need accounting for.
    Last edited by cjmillsnun; 12-08-2017 at 5:21 PM.
    • DCFC79
    • By DCFC79 12th Aug 17, 7:29 PM
    • 29,723 Posts
    • 18,821 Thanks
    DCFC79
    • #4
    • 12th Aug 17, 7:29 PM
    • #4
    • 12th Aug 17, 7:29 PM
    I'm going to disagree with no late payments or defaults should be showing. I have six defaults and exchanged contracts last Thursday. My mortgage offer is from one of the bigger high street lenders at very competitive rates.

    However I would say nothing recent (within the last 4 years) that is adverse. Any defaults should be satisfied. Any CCJs again satisfied. If you can get to that stage, then you should be able to get help from the high street.

    I agree that excessive borrowing is a no no. Avoid payday loans and home credit like the plague.

    But you also need some recent history. A credit card that is used to no more than half its credit limit and paid off in full every month is ideal (especially as it costs you nothing - and if you can get a reward or cashback card can make you money or vouchers), along with a mobile phone contract (look at a pay monthly sim only contract and you can find something cheap). This combined with your bank account (not going overdrawn) should stand you in good stead.

    I do agree with being on the electoral roll, that is an essential.

    Last of all. You need a deposit. The more the better. Aim for at least 10% cost of the house and also look at putting another 5-6k aside for costs - conveyancers, searches, valuations, Stamp duty, moving, decorating all cost money and will need accounting for.
    Originally posted by cjmillsnun
    When were the defaults from ?

    Some lenders may be more lenient than others.
    Last edited by DCFC79; 12-08-2017 at 7:41 PM.
    Je Suis Charlie
    • cjmillsnun
    • By cjmillsnun 12th Aug 17, 8:11 PM
    • 103 Posts
    • 61 Thanks
    cjmillsnun
    • #5
    • 12th Aug 17, 8:11 PM
    • #5
    • 12th Aug 17, 8:11 PM
    I did say nothing within the last 4 years. All my defaults are either about to drop off or will drop off within 2 years.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

2,479Posts Today

7,652Users online

Martin's Twitter