Credit File for mortgage prep

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SassySaver88
SassySaver88 Posts: 85 Forumite
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in Credit file & ratings
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

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  • sourcrates
    sourcrates Posts: 28,924 Ambassador
    First Anniversary Name Dropper First Post Photogenic
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    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 Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • cjmillsnun
    cjmillsnun Posts: 615 Forumite
    edited 12 August 2017 at 5:21PM
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    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.
    2.88 kWp System, SE Facing, 30 Degree Pitch, 12 x 240W Conergy Panels, Samil Solar River Inverter, Havant, Hampshire. Installed July 2012, acquired by me on purchase of house in August 2017
  • DCFC79
    DCFC79 Posts: 40,598 Forumite
    Name Dropper First Anniversary First Post
    edited 12 August 2017 at 7:41PM
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    cjmillsnun wrote: »
    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.

    When were the defaults from ?

    Some lenders may be more lenient than others.
  • cjmillsnun
    cjmillsnun Posts: 615 Forumite
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    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.
    2.88 kWp System, SE Facing, 30 Degree Pitch, 12 x 240W Conergy Panels, Samil Solar River Inverter, Havant, Hampshire. Installed July 2012, acquired by me on purchase of house in August 2017
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