Adverse credit due to frequent address changes

djc75

I have been turned down for a mortgage due to adverse credit scoring.

I have checked my report on Experian (which the lender uses) and there are no bad debts, late payments etc. The only problem appears to be that I have frequently changed address over the last 3 years for various reasons including getting divorced.

Is that really enough to be given a bad credit score? I have a good income, stable employment history, always pay my bills on time so I'm surprised that I'm considered a credit risk.

sammyjammy

Yes it can be enough, particularly in recent times, you have a stable income but as far as the lenders are concerned you don't have a stable life and that makes you a risk, you should ask around friends and family for a recommended mortgage broker, they may be able to help you find something.

Don't keep applying on your own, each time you try you wreck your credit worthiness a little bit more.

Exactly how many times in three years are we talking?

hugheskevi

I was in a similar position a few months ago. I have had 4 different rented addresses over the last 3 years, but had no problems with a mortgage application.

There may be other things as well which are impacting on your credit score which are worth checking carefully. Six months before applying for the mortgage I made sure my credit rating was as high as possible, eg by cancelling credit agreements, reducing amount of credit I had access to, etc - see http://www.moneysavingexpert.com/loans/credit-rating-credit-score if you haven't looked at it already.

The only surprising thing I noticed was that on one of the three credit agencies (not Experian) they had me recorded as being not on the electoral roll, as the address on the electoral roll was slightly different to the postal address of the flat due to the post system only recognising the house number, and not individual flats. I imagine that could be quite common in London and surrounds where a lot of houses have been converted into flats.

_Andy_

Which lender declined you?

herbiesjp

Not all lenders score you in the same way.

Also - the score you get on the credit reference agencies, is only an indication and is not that important TBH, it does not mean you will get the same score with the lender you apply with.

I just want to clarify something, moving address does not give you adverse credit - it may give you a lower score, but it is a totally different ball game getting a mortgage with adverse credit.

So you should be able to find something. What figures are you looking at - house price, deposit, income, other debts?

djc75

Thanks for all your replies.

The lender was ING direct, applying for a two year tracker mortgage of £300k with a £100k deposit.

It's been 5 rented addresses in 3 years. What makes it worse is that I took out a mobile contract on behalf of my sister (ironically because she was refused credit) - so her addresses appear as linked to me as well.

Experian say I'm not on the electoral roll - I did register at my most recent address but this doesn't seem to have shown up, possibly due to variation in the address as suggested above. So I'm chasing that up with the council.

Experian's estimated score is "fair" - about 50% of the highest possible number, which seems a bit harsh given I've never missed a payment!