Mortgage application - Credit score

Markie11

The wife & I are currently looking to buy a new house with a new mortgage which we need to apply for. Out current circumstances are that my daughter has just turned 1 and my wife has been off work since the daughter was born. My wife was made redundant just before going on Maternity (don't worry it was all above board) and when the maternity payments stopped around December, we decided she didn't need to look for new work and we could survive with the money we had saved.

The only debt we have, joint or personal is the current mortgage. We both have credit cards though they are paid off in full each month or not even used. We've never missed a mortgage payment in the previous 6 years. All bills are paid by DD from a joint current account and have never bounced. Basically as far as I'm concerned our credit history is very good.

Though I say this, we spoke to somebody the other day about our situation and our circumstances. She told us that our credit history is not good because my wife is not getting any credits to her current account. As she's not working or not claiming benefit this is true (child benefit and WTC go into joint account). I don't understand why this would affect our credit score, I can't find anything that states credits 'in' as part of your credit score, only check on the age, value and payment history of any debt.

Could anybody assist on this situation.

JSR

She told us that our credit history is not good because my wife is not getting any credits to her current account.

This is rubbish. It will have no effect whatsoever. As long as you have an existing line of credit, you always make the payments on time and you've been on the electoral roll for two years then your credit score will be very good. With your good record on your mortgage and credit cards there should be no problem with credit scoring.

Wh05apk

Agree with JSR, she is named on a joint account anyway.

Presumably this was told to you by the same person who thinks "you can't get mortgages anymore" or "you need 30% deposit" unfortunately there are too many misinformed, well meaning people out there.

Markie11

Thanks guys. I was actually told this by a Senior Banking Manager with a well known high street bank.

Our joint current account is not with this bank though my wife's own current account is. I thought this person was just trying to get as much money through there accounts are possible. Advised us that we should redirect the child benefit and CTC through the wife's account so that it has credits coming in then have a standing order that sends it over to the joint current account (in another bank).

I didn't want to say this in my initial post so that I would get non-biased or non-influenced responses. It just goes to show that even these people don't know what they're talking about or they do but their actions and advise is wrong. Wrong in that it's not morally correct. No wonder we're in the state we are because the banks are still taking the p**s.

In addition to the comment about the credit score, we were also told by this person that if we wanted to rent out current place until it is sold then we could. My response was 'not sure we will get consent to let' to which she replied 'just don't tell your lender you're doing'.

I feel as though I should raise a complaint about this person but what proof do I have that this person said what they did.

charley83

I'm no mortgage expert but that advisor sounds awful!! Anyway, I just wanted to add that as you queried your credit history, I would check this through the well known credit reference agencies, which you can do for free (see websites for details - some you have to sign up then cancel).
I checked my credit history to ensure there were no mistakes etc and I also paid an addition £6 to get my credit score. Even if you don't check your score, if you have credit with no missed payments your score is prob good-excellent anyhow, but worth looking at your individual files.

Kind regards

WellKnownSid

Markie11 wrote: »

Thanks guys. I was actually told this by a Senior Banking Manager with a well known high street bank.

Staff in retail banks are paid peanuts, in fact they're paid lower quartile peanuts - so inevitably all you get are lower quartile monkeys!

Markie11 wrote: »

No wonder we're in the state we are because the banks are still taking the p**s.

Inept though the "senior banking manager" in your retail bank was, sad to say that they and their branch probably had very little to do with the ongoing banking crisis.

Markie11 wrote: »

My response was 'not sure we will get consent to let' to which she replied 'just don't tell your lender you're doing'.

If you ever have any doubts about anyone giving you good advice in any walk of life, simply ask them the following. "Please could I have that in writing with your signature on it, so that in the unlikely event of ever having to go to court, I'll have it all written down".

kingstreet

Bank employees are there to sell bank products and hardly ever give "advice" in the sense most of us understand. I do not know why anyone would choose to approach a bank voluntarily.

noodle

WellKnownSid wrote: »

Inept though the "senior banking manager" in your retail bank was, sad to say that they and their branch probably had very little to do with the ongoing banking crisis.

Whilst this is true, these sory of stories show exactly why financial literacy is so poor in this country - even people in positions of perceived respectable authority are giving out duff information.

I think the OP should write a letter to the banks complaints dept - express concern that a member of staff is giving out bad information, which could lead to customers making bad decisions. Even if all it leads to is someone having a quiet word with the 'senior banking manager', that would be a positive effect if the bad advice stopped.

Indecisionismymiddlename

I would imagine that this person has confused the rating that the banks use internally to score your account.

I bank with lloyds as a business and we get shown our account's score every six months or so when the bank comes out to see us.

This score is affected by how the account is managed and the amount of money that goes through the account.

stevemortgages

Unfortunately, staff employed by banks can't give "advice". All they can tell you is what their bank will & won't accept. I had the unfortunate experience of working for a high street bank several years ago - I left after 9 months. Without naming names, their policy was along the lines of..."it doesn't matter if it's the right thing for the customer, we have targets to hit and if we don't achieve them, your job will be on the line".

This went completely against everything I stand for, so I told them where to stick the job, but I imagine the "career" employee will just go along with what they are told to do/say.

A sorry state of affairs, but it's reality....

Steve