Mortage search on Credit Report

FirstTimeBuyer1983

Good morning,

I am a first time buyer with a previous history of bad credit. I went to see a mortgage broker who applied for a mortage through Nationwide which i knew would be declined, since then, two more searches for first time mortgages have appeared on my file as 'First Mortgage Search'.

I had heard that having more than three applications on your file will affect my applications in the future, do these 'First Mortgage Search' count as my three applications?

I dont have trouble with debt anymore and have worked jolly hard to pull my head above the water! I just hope someone somewhere realises this

Thanks:j

rising_from_the_ashes

Can I just ask why you went through the Nationwide application if you knew it would be declined & therefore recorded on your credit report?

Also, why were you so sure this would be declined?

Are there things on your credit report which would "put off" a lender?

FirstTimeBuyer1983

The mortgage broker thought it would be a good first port of call. I knew it would be declined as i have been declined for credit in the past.

I have two defaults from pre 2008 and one open credit account, which will be paid off tomorrow. It isnt in arrears.

rising_from_the_ashes

Sorry but I'm confused now - if you're so sure you'll be declined, why are you applying? (It will only mess up your credit report even more).

Have you checked your credit report lately to make sure it's all correct?

Did N/wide give a reason for declining you?

Are the defaults settled or unsettled?

FirstTimeBuyer1983

I am applying because i would like to get on the property ladder. I have a £30k deposit and the funds available to buy a house. When it comes to money lending, i dont have a positive outlook on it.

The credit report is checked regularly, and both defaults are settled.

It was done online via a mortgage lender so i wasnt given a reason.

rising_from_the_ashes

Do you have a good recent credit history? (eg a credit card you've been using & paying in full each month)

The older the defaults get the more change you've got of being accepted (providing you've a good history since these were placed) especially if they're settled.

I managed to get a mortgage with a 4 year old settled default on my file (before the credit crunch).

Don't give up - go back to the broker and see what he suggests, it may be that you'd have to look "off the high street" where lending criteria may not be quite as strict.

Obviously if you do end up with a sub prime mortgage and the subsequent higher interest rate, make sure you're not tied in too long / have a large exit fee so you can try to move to a better rate in a couple of years.