First time Mortgage Help!

NicolaH_2

I'm looking to apply for a mortgage for approx £85,000 on a £91000 property.

I have just checked my credit score with Experian out of interest, after I've done a search for 3 credit cards as I didn't realise they were all MBNA and I've only just closed one. It says my credit score is "fair" at 844.

I will have approx £5,000 on 0% credit card in a couple of months. Will be putting approx £6,000 deposit down. I also have a loan which finishes in Sep 07 pay £145 out each month.

Will this credit score adversely go against me when applying for a mortgage?

Thanks for any advice..

tomstickland

I've just taken out a mortgage for very similar amount to yours and I have £5K of apparent debt on my credit file. It's not real debt because it's stoozing money, but they don't know that.
I've not had any problems obtaining the mortgage - it's small by modern standards. So I think you'll be OK. Get a mortgage offer in principle from a broker.

NicolaH_2

Thats great, thanks for the advice.

Do you know if 844 is an ok credit score though for getting a mortgage?

stanmoresaver

tomstickland wrote:

I've just taken out a mortgage for very similar amount to yours and I have £5K of apparent debt on my credit file. It's not real debt because it's stoozing money, but they don't know that.
I've not had any problems obtaining the mortgage - it's small by modern standards. So I think you'll be OK. Get a mortgage offer in principle from a broker.

I think you are right Tom! A broker will be able to advise you and do an agreement in principle.

SS

tomstickland

844/1000? That's very good as far as I know. I got 474 from Zoopa (lending exchange, free credit rating loophole) and that is "prime" territory apparently.

NicolaH_2

That puts my mind at rest, many thanks.

I think I just worry as I have been in a bit of debt with credit cards but am paying it off and my loan will finish Sept 07 too, so feel back on my feet now and earning more also.

As I said in my previous post I have done a few credit searches for credit cards in the last few weeks for MBNA by mistake not realising same card. Will I be ok going for a Mortgage in the next month as these credit searches will all be close together?

MortgageMamma

I doubt one or two credit searches are going to ruin your chances of getting a mortgage. If you had bad credit and had 20 credit searches in a month or so then maybe that would impact. As tom and SS say its best to sit down with a broker, and make sure you find the right mortgage first time, otherwise you will be risking even more credit searches in trying to find a good mortgage.

HTH and GL

MM

NicolaH_2

Thanks for your reply.

How do mortgage lenders work out your debt against what they will lend you?

E.g. I will have £5,000 on credit card and paying a loan £145 a month until Sept 07?