No credit history = no mortgage?

sidebar

I've been told by two IFAs that with my current income, deposit, and having no outstanding debts/CCJ's I should have no problem obtaining a FTB mortgage. Having now applied for a mortgage I've fallen at the first hurdle, having failed a credit check. The IFA has suggested obtaining a copy of my credit record to look for anomolies, which I'm now in the process of doing. I did get a copy of my Experian record about 18 months ago which had literally nothing on it besides my addresses (inc. electoral roll).

I'd consider myself to be pretty good with money - never had a loan or credit card, always buy things outright on debit card, have decent savings, pay bills on time, etc. Is my lack of credit history going to prevent me from getting a mortgage?

Any help greatly appreciated!

herbiesjp

sidebar wrote: »

Is my lack of credit history going to prevent me from getting a mortgage?

Any help greatly appreciated!

Yes it can do.

There is no track record of how you conduct yourself with credit commitments and therefore no information on which a lender can base a decision on.

Which lender did you apply to - as some lenders are more strict than others?

What figures are you looking at?

sidebar

herbiesjp wrote: »

Which lender did you apply to - as some lenders are more strict than others?

What figures are you looking at?

I applied to Nationwide. The figures are: 85% mortgage on £156k property, income £39k.

herbiesjp

Nationwide are probably one of the tightest lenders on criteria

You might want to try one more lender whose scoring is not so strict

Before you do so, get an up to date copy of your credit file though, to make sure there are no mistakes.

sidebar

Ok thanks, I'll give that a go and cross my fingers.

Do all lenders assess mortgage applications in this way? Is it possible to get them to consider any other evidence besides credit history? And would it be any different if I took a mortgage with my own bank which I have a long history with?

Yorkie1

This has been described to me as a classic credit loophole. I'm a professionally qualified person, paid off credit card every month since I got one well over 10 years ago and have managed my finances so that I haven't needed to rely on credit.

Result = lower than perfect credit score and in negotiations with lender via broker at the moment for my first mortgage, which is less than 60% LTV, less than 3.5 times my salary, and less than the rent I currently pay.

We'll get there and I can understand the rationale, but it doesn't make it any the less frustrating!

herbiesjp

TBH I can't see what problem you would be having

You sound like the perfect/ideal applicant

Credit track record, always paid on time - should = good credit score. As opposed to the OP who has no track record

Not sure why you say:

Result = lower than perfect credit score

Do you have an up to date copy of your credit file? Who is the lender? Sounds like a cherry picking lender

chappers

Did you say you weren't on the electoral roll, if so that is probably your biggest hurdle here.

sidebar

I am on the electoral roll at previous 3 addresses, so at least that's something

I spoke to my own bank who seemed to understand the problem. They said they wouldn't know if the mortgage would be approved without putting an application in, however given my long history with them they were optimistic. Can't seem to get hold of my mortgage broker today to discuss options... guess I'll give it one more day then just cross my fingers and apply with the bank.

netsteve576

Anyone had probs with A&L? they just won't talk and not sure what should be the next step.