Clearing your credit scoring/rating

perfumemum

I am planning to sell my house to downsize and to pay off my debts and to clear my overdraft so that I can live more comfortably.

I have been assured that I can get a smaller mortgage of £30,000 and I can afford the monthly repayments, no problems.

The problem is that my credit scoring has stopped the building society from offering me the mortgage. They were the ones who wanted me to move so that they could get their money back and to reduce my debts.

I do not know how best I can get rid of my credit scoring which is about £5,000 without it affecting my mortgage application for £30,000. I plan to pay off this debt anyway from the profits of the sale of the house.

But I am stuck in this trap - they won't give me the mortgage and I do not have the money in readiness to pay it off. If I get a loan, this would affect the credit scoring and make it worse.

Any ideas on how I can improve my credit scoring without digging myself further into debt whilst trying to sell up?

Tixy

Do you mean your credit file / credit history has stopped you getting a mortgage? If so then even if you pay off your outstanding debts it won't necessarily mean you are offered a mortgage.

Have you looked at your credit files? if not get copies of them (you can get them for £2 each from each of the 3 agencies).
What do they show?
If you've missed payments, made late payments, gone over your overdraft limit, defaulted on accounts, entered repayment arrangements, got CCJs then any of these will show on your credit file and you will be stuck with them (most things stay on file for 6years).

Once you know what is on your file you can plan a way forward, and perhaps decide if you might get a mortgage from another lender (by going to an independant mortgage broker and taking along copies of your credit files) or whether thats unlikely to happen.

Have you got an offer on your house? have you found a house you want to buy and had an offer accepted?

Boris_Allen

Appeal on the grounds that you are doing this (a) on their suggestion and (b) because you are being more responsible this way.

Automated systems have a habit of not being able to see common sense. Sales advisors/underwriters have similar habits, but at least there is a higher chance they may not indulge that habit for you. Good luck!