Better chance of mortgage through current bank? 30 June 2010 at 5:09PM edited 30 November -1 at 1:00AM in Mortgages & Endowments 19 replies 1.3K views

bodmil

I'll be wanting to get a mortgage in the next year or so. I have no real credit history and am not on the electoral role, and this is unlikely to change due to work cirumstances. However, my bank has a very long history of my savings and accounts, always with a good wage going in and recently a credit card.

However, they don't offer the best rate of interest. Is it going to be best is I sacrifice 0.3% interest for the sake of showing them a very good cash flow?

I realise I might not go with them for a mortgage, however as I browse now, they offer some pretty good rates for 70-75% LTV (it's Nationwide btw).

Senior_Paper_Monitor

Register on the electoral role, obtain a credit card (from bank if you wish - probably easiest) and use it each month and pay off in full each month - heh presto .... much improved credit rating/history by next year !

bodmil

I already have a credit card with that bank, as pointed out. And if it were possible to be on the electoral role, I would be.

If you have any advice regarding mortgages from providers with which one has a history, I'd be greatful.

bodmil

Basically do banks look favourably on customers they know well?

mutron_2

I think the days of that are well gone. It's all up to the computer now as most underwriting is done that way.

Senior_Paper_Monitor

Bodmil - sorry, I missed you already had the card (the important thing though is to use it, which was the key point of my post).

Beyond my imagination why you can't be on the voter's role (unless you are not eligible - in which case you have a problem that will need detailed investigation/advice).

What Mr Mutron says is correct - there are some 'special deals' (in terms of rates) for existing account holders with some building societies/banks but the credit scoring issue is the same. Some banks identify 'good' mortgage customers and offer specific renewals (not much help to you).

As there appear to be 'special issues' in your case, find a good broker/IFA willing to spend time with you now to identify possible lenders (who will consider those 'special issues') and come up with an appropriate plan to meet their likely criteria in the future.

bodmil

I have no fixed abode although I am elegible to vote. I will get on the register just before applying if that will make a big help?

Senior_Paper_Monitor

Yes it will make a big help (even if done that way - but note the processing time scales often detailed on the back of the registration form) - presumably your banking is not based on 'no fixed abode', so can you not use same address and start to build some history ?

I was in a similar position for several years as I travelled the world as a consultant and when in the UK used hotels, having sold my house, but maintained sufficient status address(es) etc.

bodmil

No, banking is all based on my long suffering mother's address. I also work internationally so just go from work accomodation to long holidays or friend's houses so I have no rent or bills. Awesome for saving but it means the only record of finances is my bank. I do not want to go on the voting register and then have Mum liable for paying more council tax when I'm not actually living there.

Senior_Paper_Monitor

Exert from Elmbridge Borough Council website ....

Electoral Register - What about Council Tax?

The Council Tax Register and the Electoral Register are completely different. They are two separate Registers that contain different information and are used for different purposes.
The Council Tax Register may show the names of the owners and not necessarily the residents of the properties. For these and other legal reasons the Electoral Registration Officer is not permitted to take names from the Council Tax Register and put them on the Electoral Register. Similarly, details on the Electoral Register cannot be put on the Council Tax Register.

Exert from Cornwall Council website .......

You can only vote in elections if your name appears on the electoral register. Please note that registering for council tax does not mean that your name is automatically added to the register of electors.
The council tax register and the electoral register are two separate registers and are completely different.
The council tax register may show the names of the owners and not necessarily the residents of the properties. For this reason, together with legal restrictions, the electoral registration officer is not permitted to take names from the council tax register and put them on the electoral register and vice versa.



and many other similar ones - yes they can check against each other and query why not on the council tax calculation but it is perfectly reasonable to respond that you don't live there (check/confirm this direct with your local council I suggest).

An additional thought - would it not be worth offsetting some of your savings by paying (all or part of) the council tax bill, having your name on it (or some other utility if you prefer) so that you have the standard proof of address documents when you get round to a mortage application ?

I repeat my comment in an earlier posting ....

"As there appear to be 'special issues' in your case, find a good broker/IFA willing to spend time with you now to identify possible lenders (who will consider those 'special issues') and come up with an appropriate plan to meet their likely criteria in the future."

bodmil

Thanks, that does confirm my worries about registering.

I don't know if it's worth it, I don't really know the effect of having no credit record when applying for a mortgage. Perhaps someone with experience in mortgage applications could answer that. It's unlikely I would go through all the hassle though.

Thanks for your input.