Mortgage Advice

ADEWIS

Hi

Im new here, seeking help for me (19yo) and my girlfriend (20yo), were attempting to purchase our first house, a £125k semi in Bristol if the owner of another house we like priced at £135k turns down our offer. the problem is that we have been refused a mortgage (Yorkshire building society) and were told that our credit rating is not good enough, we have a 10% deposit and each earn 19.5K a year, both have phone contracts and now credit cards, however have not used them.

Im worried because they told us our credit was not good enough yet that they would offer us up to a 150k mortgage if we had 15% deposit. They also told us that credit searches damage our credit rating, when we apparently dont have one, does this mean that i now have a negative credit rating? despite having no debt? we were also told that using our credit cards in the short term to buy stuff will damage our rating even if we pay it off.

is there any advice anyone could give? Im already having a hell of a time trying to sort out what i need to do normally to buy a house now with all this credit stuff i just dont understand fully!


Many thanks in advance!!!

ACG

Go and see a mortgage advisor? They will take a lot of the hassle away.

However... if you put down an extra 5% there is less risk to the lender so they can afford to take a chance on you and the property.
If you dont have a great credit rating then you either need a lender who doesnt credit score or one with lower criteria. The only lenders i know that dont credit score are ones that deal with advisors only... there may be some building societies that dont but i cant think of any off the top of my head.

You may not have a bad credit rating, it just sounds like you dont have a proper score because you have never really used credit - so they cant see if your a good payer or not.

Hopefully that straightens a few things out for you? Its probably not as bad as you think it is, there will be lenders its just finding the ones that will accept you if you cant find the extra 5% theyre after.