Question about credit rating for a mortgage

NotVeryTechie

Hi there

Hope someone here can help. I am a migrant and have a very good credit record, and a mortgage back home, but no credit at all in this country. I have been here five years, have a good income and no outstanding debts.

I would like to invest in a buy-to-let property, just to get my portfolio started and the property guy said that I will need to build up a credit history before I can get a mortgage. He suggested using my credit card to its limit every month and then paying it off. The problem is that I never spend that kind of money in a month. I don't want to start madly spending just to build up a credit reference, so what do I do?

I am a lodger and have no bills in my name or even a mobile contract - again I don't use the phone that much, so I don't want to spend money on a contract just for the sake of the reference. I am very careful with money and save a lot.

Is there any sensible (not blowing money) way that I can build up my credit report?

Thanks all

ginvzt

If you have credit card (CC), you have credit history, I would have thought, eve if you don't use it?

I never reach my CC limit and I repay it every month (unless I am on 0% purchases). You can do your daily shopping on the CC and then just pay it off every time.

Also, if you have CC, you will be getting CC bills(statements).

NotVeryTechie

The property guy I spoke to seemed to think that I would not have enough of a credit history to qualify for a mortgage.

Thrugelmir

Why not buy a home to live in and save on rent?

NotVeryTechie

I can't afford prices in London, which is where I live.

VIGILANT22

Where is this "property guy" suggesting you should invest....you will actually find it quite if not impossible to obtain a BTL mortgage with no residential mortgage and yr current status......ie no permanent settlement

NotVeryTechie

Um, I am a permanent resident and will be applying for citizenship in April this year.

The question is still, how do I increase my credit rating.

Wutang_2

You were told the answer: use credit card. There is no formula but CC gives you a way to be seen to be borrowing - paying back - borrowing - paying back etc etc every month. BTL is a different story though.

Senior_Paper_Monitor

Ensure you are on the voters role (assuming a commonwealth citizen or otherwise eligible) - which in turn means a semi-permanent address matching your bank statement/contact address.

Thrugelmir

NotVeryTechie wrote: »

I can't afford prices in London, which is where I live.

People commute into London.......