No credit history... so been rejected for a mortgage???

laura103 · 1 June 2017 at 8:06PM

Desperate for some advice

We are first time buyers, got an idea what we could borrow, searched. Found a house, put an ffer in, got in touch with a broker sorted out a few bits with them and got a mortgage in principle with Santander. We than had an offer accepted.

This is where is went wrong. Sent all the details to the broker for him to put in our application. Came back rejected because I have no credit history.

My other half was fine, they accepted him but wouldn’t accept me because I have no credit history. My credit score itself is good. But because I’ve never taken a loan out, credit cards etc they won’t accept me because they cant predict my future habits.

Obviously this was shattering news. After Speaking to the broker he has tried with many more big lenders and some smaller lenders but they are all coming back saying the same thing. I’ve now had 2 credit checks done to check me out and have nothing from it.

I have been told to put down a 15% deposit which is impossible, i’ve asked if a guarantor can be used but have yet to have an answer. So far it looks like my only choice is to hang back for 12 months to build up my credit score. Unfortunately I don’t really have 12 months to get it sorted.

I was hoping someone out there has gone through this and has come out on the sunny side and know of anyone or anything we can do to get a lender to accept us for a mortgage.

Thanks in advice.
Laura

ACG · 1 June 2017 at 8:31PM

Do you have a bank account?
A mobile phone on contract?

You do not need a major credit history, some lenders only need to see 1 line of credit (a bank account would satisfy this) in rder to be able to offer a Mortgage, you do not even need an overdraft.

MK__2 · 5 June 2017 at 9:32AM

Same thing happened to me when i first bought a house. No bad credit history at all, but no good credit history either. Mortgage broker kept showing me all these great deals, but the lenders wouldnt go through with it, and all I was left with was a handful of options with awful rates.

Solution: get a credit card, use it for all your purchases over £50. Pay it off in full immediately every month. Pay anything you can on direct debit (mobile phone contract, etc).
My rating boosted up and after a few months I was able to get better rates.

[Deleted User] · 5 June 2017 at 9:34AM

MK_ wrote: »

Solution: get a credit card, use it for all your purchases over £50.

And under, as well.

beckysheffield · 8 January 2018 at 9:19PM

I’m in a similar position. Been living overseas, came back, never had credit.

Lauralou79 · 9 January 2018 at 7:36AM

My partner was the same he had no credit history of note, saved and bought everything outright. Including PAYG mobiles.
This really worried me I had no debt but a good history of previous payments etc.
I think what got us through was a high deposit so weren’t as much risk in LTV terms. Upping your deposit does seem to make a lot of difference to lenders. We also were buying well within our means and the mortgage we needed was only 2x our joint salaries.

charlie792 · 9 January 2018 at 7:37AM

ACG wrote: »

Do you have a bank account?
A mobile phone on contract?

You do not need a major credit history, some lenders only need to see 1 line of credit (a bank account would satisfy this) in rder to be able to offer a Mortgage, you do not even need an overdraft.

This ^^^^^

We got a mortgage no issues and my partner had nothing whatsoever in his name apart from a personal and business bank account.

Edi81 · 9 January 2018 at 8:22AM

Well your “score” means nothing then.
Get a credit card, use it and pay off IN FULL EVEDY MONTH

No credit history... so been rejected for a mortgage???

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