Looking to buy a house, but no credit?

minirolo2004

Hey everyone,

I'm just after a little advice. Today, I switched mobile phone provider and was surprised that I wasn't approved with the new provider immediately after a credit check. I can only deduce it's because I have no credit.

I am off to see an IFA next week about arranging a mortgage, so, obviously theres not an awful lot I can do between now and then, but I'm after any advice to raise my credit score and, if you so wish, any guidance relating to the financial situation I'm in regarding buying a house.

I earn 38k a year - I have saved 25k for a deposit and I am looking at houses with a top asking price of 125k. So, I have a 20% deposit and I have a few grand in my current account to cover fees etc and buy some cheapy essentials for when I move in.

My debt...well, none. I don't have any whatsoever, not even an overdraft. I bought my car outright, I DO have a credit card but I haven't used it in years.

So, thats about it. I feel I am in a strong position for buying a house, but now, I'm not so sure as I have started to worry about the credit check, even though I have no debt!

I'm not on the electoral register (yet) as I have moved (I'm in the RAF) about once a year and, if I'm honest, it's not been on my list of priorities, as I didn't think it would be an issue.

Can anyone help at all?

Thanks,

Mini :cool:

pinkshoes

Why don't you use Experian to check your credit rating online. I think you can sign up for a free trial (but don't forget to cancel...).

This should tell you if there's anything suspicious on your file.

BitterAndTwisted

It sounds to me that you don't have a bad credit-record just no credit-record at all as such. One way to improve your credit-rating is to apply for a credit-card, use it and pay the balance off in full every month.

I'm sure there's a section here on MSE all about this somewhere. Martin appears to have thought of everything else so I'm positive he's thought about this one as well

Soot2006

We got a mortgage with no credit record. We both moved to the UK in 2001, never took out any credit, never owned anything to any one ... We got onto the electoral roll before applying for our mortgage and we had sufficient income proof/etc -- we told the mortgage broker from the start that we didn't have a credit record in the UK and he managed to fix us a decent deal with Northern Rock --

Fire_Fox

Get on the electoral roll as quickly as you can, get your number from the council and pass it directly to the three credit reference agencies, start using the defunct credit card and pay it off by DD each month.

Milliewilly

minirolo2004 wrote: »

Hey everyone,

I'm just after a little advice. Today, I switched mobile phone provider and was surprised that I wasn't approved with the new provider immediately after a credit check. I can only deduce it's because I have no credit.

I am off to see an IFA next week about arranging a mortgage, so, obviously theres not an awful lot I can do between now and then, but I'm after any advice to raise my credit score and, if you so wish, any guidance relating to the financial situation I'm in regarding buying a house.

I earn 38k a year - I have saved 25k for a deposit and I am looking at houses with a top asking price of 125k. So, I have a 20% deposit and I have a few grand in my current account to cover fees etc and buy some cheapy essentials for when I move in.

My debt...well, none. I don't have any whatsoever, not even an overdraft. I bought my car outright, I DO have a credit card but I haven't used it in years.

So, thats about it. I feel I am in a strong position for buying a house, but now, I'm not so sure as I have started to worry about the credit check, even though I have no debt!

I'm not on the electoral register (yet) as I have moved (I'm in the RAF) about once a year and, if I'm honest, it's not been on my list of priorities, as I didn't think it would be an issue.

Can anyone help at all?

Thanks,

Mini :cool:

Sounds like you have the same problem I had. No credit = no credit rating so no credit offered. Its a ridiculous system that if you are good with money you get penalised for it.

PasturesNew

I never go on electoral rolls, don't see the point/don't expect to be staying long ... and I never vote anyway ... but apparently, these days, it's important.

I've no credit history either, no credit cards ... and I was refused a particular broadband account with Virgin because I failed their credit check... I had just moved into a new flat the day before, so that might have been because I wasn't on the electoral roll.

It's all daft really isn't it.

sebtomato

Ask for an agreement in principles on a mortage, from a bank or a broker. They will check your credit scoring, and let you if this could be an issue when you do apply for a mortgage.

minirolo2004

Hey..thanks for your comments/advice so far.

Yes, it IS annoying...I'm good with money, I have no need to use my CC - but, I suppose I will have to start using it..but, it will be too little too late. I'm off to the county hall on Tuesday to register - how do I get that passed on to the 3 main credit agencies? And the council number - what exactly is that? I've also requested a copy of my credit report from Experian, but, it will take a couple of days as I have moved base at least once a year!

I'm hoping my IFA can get me a decent rate - appt is next Friday. Sigh, being good with money isn't always helpful it seems. Madness.

I was so looking forward to getting the ball rolling with buying a house...put a bit of a dampener on it now.

Fire_Fox

Register to vote online: http://www.aboutmyvote.co.uk/
Once you are registered you ask the council for your roll number and ring the three credit reference agencies.

minirolo2004

Fire_Fox wrote: »

Register to vote online: http://www.aboutmyvote.co.uk/
Once you are registered you ask the council for your roll number and ring the three credit reference agencies.

Thanks Fire Fox. That easy eh? Just ring them? Experian, Equifax and who is the third?

Thanks again.