Rejected for a mortgage...

Red_Rocket

...because I've never took out a loan or had a credit card!!!

I cannot belive it! I'm (hoping to become) a FTB and have today been rejected for a motrgage as they 'cannot verify my credit'

What sort of ****ing country do we live in where you get penalised for living within your own means all your adult life? I have intentionally never took out a credit card as i have always subscribed to the 'if you can't afford it, you can't have it' school of thought when it comes to myself.

What can I do now? Even if i take out a CC today, they have to wait 6months to see whther I can be trusted!!!!

How is this fair? It's a sad indictment of the society we live in.

And also the credit history 'service' won't let me register, because according to them, the flat I have been living in for the past 20 MONTHS doesn't exist! This is despite being on the electoral register at this address and paying council tax the whole time...

Rant over. If you hadn't guessed, I"m having a bad day

Any thoughts???

Tassotti

It is a crazy system that's for sure. I remember having to take out a couple of credit cards years ago, just to get a credit history. Stupid.

You may be able to get a rental statement from your current letting agent or landlord.

Present this to a friendly lender. May help..may not.

Get yourself a decent mortgage broker and see if there is any way around this

Tass

mi-key

The other option is to go and talk to the mortgage people at your bank - if you have been with them a few years, they will be able to look at your account and see what income and outgoings you have, savings etc.. and if you explain you have never wanted or needed credit, they will take this into account.

Only problem is that the banks rates are generally not very good, so the mortgage will cost more.

It is a daft system, but I suppose its understandable in one way in that your credit record shows that you have borrowed money before, and been able to pay it back on time. Not having any credit history means lenders ( who dont know you ) have no idea if you are a good risk or not.

Other option is get a couple of credit cards ( through your bank should be easiest ) - buy a few things a month on them and pay when the statement comes through. It wont cost anything as you arent paying any interest, but will start building up a credit history.

With the way the housing market is at the moment, and uncertain interest rates, you're probably better off waiting 6 months to see what happens.

Iso

Red_Rocket wrote:

...because I've never took out a loan or had a credit card!!!

I cannot belive it! I'm (hoping to become) a FTB and have today been rejected for a motrgage as they 'cannot verify my credit'

What sort of ****ing country do we live in where you get penalised for living within your own means all your adult life? I have intentionally never took out a credit card as i have always subscribed to the 'if you can't afford it, you can't have it' school of thought when it comes to myself.

What can I do now? Even if i take out a CC today, they have to wait 6months to see whther I can be trusted!!!!

How is this fair? It's a sad indictment of the society we live in.QUOTE]

Join the club!!! I've been told that applying for a mobile phone, store cards help too - but I don't want them! All I want is a small bank facility for a new company and I don't have a credit history as I haven't got any HP, CCs, loans etc. To cap it all one bank has recently asked ME to provide THEM with a copy of MY Equifax file (presumably because they'll find out more about me from my file than they can by going to Equifax themselves). Now they want to know all about my partner's income and expenditure even though he's nothing to do with the business - now I'm not a feminist but I reckon that's a blooming sexist way to behave!

robwend

ive a mortgage and never hada credit card and ive only had a mortage 3 years sound odd

Joe_Bloggs

Name the prospective lender. There may be other underwriting approaches that the lender could take. Do you have a significant savings deposit ? There is no way that a credit search can access your savings history. You might have to volunteer this if it will do you some good. Try and escalate the issue higher up the management chain.

With the debt averse a 'credit history' is only half the story.

I had to engineer my credit history too.
J_B.

Red_Rocket

Apparently, I was refused due to both the problems I mentioned before, namely no credit score, and then equifax insisting that my address doesn't exist.

We have notified equifax of their deficiency in information, and now have apparently updated this, as today my partner and I have had a MIP agreed with a different provider!! Hooray!!

What really disappointed me was that the lender that rejected me, naming no names (a regal sounding bank, north of the border) did so despite me having an account with them for over 10 years without a single problem, and they KNOW where I live.

I wouldn't have been able to sort this all out if it wasn't for my fantastic independent financial advisor.

Now the real drama of buying a house begins...

Bargain_Rzl

If it's any consolation, my independent mortgage broker told me that the "regal-sounding bank from north of the border" tended to be very slow in processing mortgage applications and were notorious for holding things up! So it sounds like you were better off with your alternative provider anyway!

SAP_Saver

What a load of garbage.
I feel sorry for the youth of today as it is with the majority of people earning £5 p/hour and the prices of houses going up and up (ave. £200k soon) and the ave age of a FTB being around 34 (according to recent TV shows).

But this is disgusting for a (whom I suspect to be) decent member of the community not going into debt and being penalised for that!
foul if you ask me...

it is a bit like the little britan scetch " Computer says 'NO' "

I would go to a good broker and talk to them over the phone/e-mail (no charge) about what they suggest!

Proof of income and no debts can be looked favourably be some lenders (I used NR) I have no debt but have had a CC and HP in the last 3 years!

Wish you good luck!

Twisterella

I'm worried I'm going to have the same problem. I've only ever had a credit card through my bank, and the only loan was a student loan which I've paid off. I hardly ever use my credit card, and when I do I pay off the whole amount straight away. I live with my parents, so I don't even have any utility bills in my name. I'm saving at the moment, and am not planning on buying a house until next year. Do you think it would be a good idea for me to get another credit card now and buy a couple of things on it to get a credit history?