planning for the future 2yrs post BR

johnboyy

Hi, i went BR approx 2 and a half years ago, and i was wondering if anyone had any advice that might help me in the future in terms of morgages especially.
i have manage to save quite a bit off money over the last 2 and half years and in the future i would like to buy a house as im renting at the minute.
Should i find a bank or building society that might allow a post BR to get mortgage in the future and sent up a saving account or investments? at the minute im with the coop bank and i cant even open a savings account, so i dont think in the future they will lend to me.
any advice would be appreciated, thanks john

Ineedaname

Firstly, have you cleaned up your credit files?

Secondly, I opened a savings account with the Co-Op within weeks of my discharge, they take you through a rigorous application process and will credit check you, but with knowledge of your BR on file they should be able to open a savings account regardless. They may have to appeal a rejection, but that's standard.

Failing that, you could try NatWest as I understand they will offer their Step account to ex-BRs and you'll also get a savings account easier with them.

When it actually comes to looking for a mortgage, even if your BR has dropped off your credit files you will have to answer 'Yes' if asked "have you ever been BR?". So probably best to seek out a reputable mortgage broker or independant financial advisor. Look for one registered with AIFA and you can search for an advisor using that site too. Independant advisors have more products available to them so should be able to find a mortgage suitable for you. If you apply to one bank unsuccessfully, you then have to approach another and maybe even another. Each application will show a search on your credit files, more searches may result in automatic rejection with successive banks.

dojoman

Hi and welcome to the forum, have a look at this thread (link below) it maybe useful:)


https://forums.moneysavingexpert.com/discussion/2918012

johnboyy

thanks for the replies. yes just looked at the cleaning up credit files, will start that tomorrow as ive never looked at a credit report since being BR, i did try ringing the coop for a savings acxcount as my bank account is with them but after the process it got refused so i gave up and my money is just in the normal account

ive had a look at the mortgage thread the few banks that will lend to a ex=BR do you think it is worth trying to have a normal account with them or do you think that doesnt matter?

i did used to own a house 110% mortgage (thats were it went wrong + CC, Loans etc ) but i just used the mortgage guy at the estate agent, i guess went the time comes i will have to search around alot harder

thanks john

Ineedaname

It certainly wouldn't hurt to build up a good reputation directly with a bank you might like to try for a mortgage with. They use their own credit scoring system on top of credit checks with a CRA and an account with them that's run well will add points, as will a savings account.

Be aware though that you are unlikely to get anything other than a basic account and most banks don't offer a debit card as Barclays and the Co-Op do with their basic accounts. What you can do though is have your income into any new (non debit card) account and all DD's/SOs going out, so the account is fully used. Then just set up another SO back to your Co-Op account for debit card use.