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Homebuy direct + low credit score

We're at the stage where we can choose a property to buy through homedirect, mortgage will be £100k prescribed limit by home2own), cash contribution of £6k buying 70% of a £150k house.

Thing is my credit score is 221 (very poor)...there's no CCJ's/defaults etc - the only negative section is because I have never had credit cards/loans etc. Not even a search on my record.

What chances do you guys think I have of finding a mortgage?

I know people think that the homebuy scheme is a scam, I'm not here to dispute that - I think it works for some people in some circumstances and not for others.

Any views would be really welcome, thanks.

Comments

  • Muhasib
    Muhasib Posts: 236 Forumite
    Have you been on the electoral roll long at your current address or anything adverse credit wise at the above address? From the lenders view the property is at 70% LTV unless the valuation comes out lower. You have a limited number of lenders at present who will lend on HBD and they are supposed to be onside with the aims of the scheme (given the lender may well be majority government owned). I'm not one that thinks its a scam either - its suits some and not others (obviously not Poppy!)
  • poppy10_2
    poppy10_2 Posts: 6,583 Forumite
    Part of the Furniture 1,000 Posts Name Dropper

    I know people think that the homebuy scheme is a scam, I'm not here to dispute that

    The homebuy scheme is a sc... oh wait :p

    Seriously though, that credit score is very low indeed. In this climate people would be reluctant to lend you one hundred thousand pounds if you have no credit history. Try applying for a credit card first, you don't need to spend on it, you can cut it up as soon as it arrives if that makes you more comfortable. It's much better to do that and then apply for a mortgage after 6 months or so than to apply for a mortgage now and get rejected - if you've been turned down for the only credit you've applied for it will look even worse. Also as above, check you are on the electoral roll.
    poppy10
  • I would agree, get some credit, even if it is a mobile phone contract. Also I would check you are on the electoral register as that score is very low, lower than people with adverse credit.
    £2 Savers club £0/£150
    1p a day £/
  • I have been on the electoral roll for two years adn there's definitely nothing adverse on my report or detailed in the rating.

    I'm reluctant to apply for a credit card and the refusal show when I apply for a mortgage - the last thing I want to do is make things worse!

    Does the fact that I will be able to afford the payments easily not have any influence at all? Even with a 'bad credit' interest rate of 8%...
  • What about overdrafts? Would they improve your credit score? A mobile phone contract could possibly be the easiest thing to get.
    Mortgage - £37k
    Credit Card (A&L) -[STRIKE] £2300 -[/STRIKE] £1200
    Santander Credit Card - [STRIKE]£1400[/STRIKE] £1100
    [STRIKE]OD - A&L - £1300[/STRIKE] GONE!!!

    "I will be debt free, I will be debt free!"
  • I have a £1500 overdraft that I don't use and a recently renewed mobile contract (in Mum's name for the last 2 years as I couldn't get credit).
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