can i still obtain a mortgage with a low credit rating?

tjglindon

I have recently been given a small amount of money (£5000) and wanted to use this to buy my first home. I have found a property which is up for sale at £74,000. I have just checked my credit rating on experian which says i have a poor credit rating. I currently rent priveatly and earn a good wage approx: £30,000, with my partner earning approx: £8,000.We want to buy but are afraid of getting knocked back and then further affecting my credit score. I have 1 loan which i have never missed a payment on and have had 2 addition loans previsely which i also never missed a payment.Just wanted some information to see if anyone has been in the same sort of situation and what mortgages (if any) were available to those with a 'POOR' credit rating.

princeofpounds

The deposit is not big enough to make it easy to get a mortgage. You should aim for at least 10%.

Your salary compared to the price of the house seems good. You should have no problem saving the extra required to reach a 10% deposit for this sort of property.

If you have no missed payments or CCJs on your record you should find it possible to get a mortgage with a decent deposit.

Exactly why experian considers your rating poor I don't know (note, there is no such thing as a standard credit check, just data which the different lenders score as they please). From memory they have advice on there which normally tells you the basics of what is deficient.

I suspect, given what you have said, that you either do not have a proper established credit history (though you say you have a loan and have had them in the past), you may not be correctly registered as being on the electoral roll, which helps a lot.

MSE also produces a good guide to credit ratings. Might be worth looking it up.

Jowo_2

What is the sum that you owe on the loan(s)?

Fire_Fox

You need to check the records help by all three credit reference agencies. Then ensure you are registered to vote, and the agencies know you are registered to vote, pay off all debts, and close any redundant credit accounts. As Princeofpounds says you need 10% deposit plus solicitors fees, removal costs and a float of three months mortgage payments in case of disaster.

tjglindon

Thanks for all your advice so far...in reply to how much i owe on the one loan i have is £2100 and i pay £175 off each month. I have just checked experian again and i am not on the electoral roll this is due to us renting off my partners dad so there is no record of us paying bills e.t.c. I will ask tonight about getting on it which should hopefully up my credit score. I think the best way of me getting a mortgage would be to as you all have said is to save more and get a bigger deposit together and stop spending!! i have been looking at various mortgage calculators e.t.c and they all say i should be ok with a bigger deposit, is it bettter to go straight to a independent mortgage advisor or just head straight to one of the high street lenders?