refused 100% mortgage- credit score good, but not good enough?

refluent

I'm trying to get a 100% mortgage.

I've been informed by my broker, that the application has been rejected because my credit score is good- but not good enough!

I've in the past had 2 loans (paid back, with no missed payments), but I've never had or wanted a credit card!

Please can someone tell me if i can to improve my credit score enough to get the mortgage, before i loose out on the house i'm trying to buy!

Thanks

MortgageMamma

what is your credit score? have you ever had an defaults or ccj's in the past?

F_T_Buyer

I think lenders are really tightening credit. I.e. cutting down on more risky loans such as 100%.

tomstickland

Obtain your credit files for free using the MSE guide from the main site.

sarah_elton

Any problems in the past at all?

I got a 100% mortgage, which was approved last October. Not sure if they've tightened up since then. I've had and used a student overdraft, and had credit cards in the past but never paid less than the minimum. These days no debt (well, ignore the mortgage lol) but I still have a cashback credit card I use all the time for day to day spending.

Get your credit file and check it as others have said.

Could it be that you don't have enough of a credit history? I.e. some people have problems the first time they ever get a credit card, just because the lender cannot see you've had debt and been good and repaid it. Not sure if the same can happen with mortgages??

Mine was through HSBC by the way, who IIRC don't go through brokers so he wouldn't have had access to their products. If you definitely want a mortgage at 100% try them, at the time I went their mortgage offers were available to all regardless of percentage. Got fixed rate at 4.99% when the only thing a broker could offer me was Northern Rock at about 5.89% :eek:

Sarah's obligatory words of caution -
(1) At 100% you're utterly exposed to any dip in the market.
(2) Don't dream of doing it on interest only - capital repayment mortgages only as far as I'm concerned.
(3) If you want 100% because your monthly outgoings don't allow you to save a deposit, really look at the affordability. Work out what the repayments will change to if (when) interest rates rise: http://money.guardian.co.uk/calculator/form/0,,603156,00.html
Know what rates can rise to before you get into trouble. I'd recommend only taking 100% if you can afford to make overpayments.

refluent

Thanks for help everyone!

I,ve sent the £2 cheque to find out my credit score and I'm seeing someone in HSBC tomorrow.