Mortgage credit rating problem

Racing_Ron

Hi there,

I've been working with my broker to get a mortgage in place. The problem is my credit score is too low. It's low because I have no credit cards or personal loans.

There are no ccj's or anything like that on my report.

I have 15% deposit and money to move - previously I've had 4 mortgages - 2 of which in the last 6 years so they're on my credit report (no problems with paying them off).

The only credit agreement I have is with my mobile phone company.

I have been looking at 5 times base salary on an 85% basis - I work on comission which should more than double my base salary, however only borrowing against my minimum base.

Any help much appreciated - my broker's suggested getting a credit card, however I don't want to do this - I hate personal loans and debts - any lenders you'd recommend speaking to or other tips.

Thanks in advance,

Ron.

kingstreet

5x basic income and no credit record?

That's going to be difficult. Using a credit card and paying off the statement balance in full is the best way to build your profile and not pay interest. Your broker is correct in that respect.

Have you actually offered on a property, or is this an agreement in principle?

Racing_Ron

kingstreet wrote: »

5x basic income and no credit record?

Have you actually offered on a property, or is this an agreement in principle?

Trying to get an agreement in principle so that I can go and seriously start looking.

kingstreet

It's a little odd that an experienced borrower is having problems with lack of score though, especially at 85%...

It may be worth getting copies of your credit files from the three CRAs, the £2 paper files will do, to see if there are any incorrect entries on there. You're sure you're correctly listed on the electoral roll?

As you've got time, I'd do the preparation properly and order your files now.

Equifax

https://www.econsumer.equifax.co.uk/consumer/uk/gb_consumerletter.ehtml

Experian

https://secure.wiseconsumer.uk.experian.com/wiseconsumer/secure_index.html?data=00

CallCredit

https://www.callcredit.co.uk/stat-report-online/index.php?action=register_display&tpl=regPurchase

Racing_Ron

kingstreet wrote: »

It's a little odd that an experienced borrower is having problems with lack of score though, especially at 85%...

It may be worth getting copies of your credit files from the three CRAs, the £2 paper files will do, to see if there are any incorrect entries on there. You're sure you're correctly listed on the electoral roll?

As you've got time, I'd do the preparation properly and order your files now.

Equifax

Thanks for that, have the Equifax report already (which took a while to get with passport checks and bank statements etc. required) which gives me a score of 442 and has me on the electoral role for the 6 years, my previous 2 mortgages, my mobile phone (all ok). 1 month late payments on a mortgage in 2007 and 2 on a different mortgage in 2005 (everything else either side green though).

star4876

Just to chip in on the credit card comments - It wouldn't hurt you to get one and just do one lot of grocery shopping or something on it once a month. If you pay it within the time then you won't be charged any interest and most cards come with an interest free period nowadays anyway. It will help improve your credit score and it doesn't necessarily mean you're in any 'debt', not like a loan where you're forced to pay interest.

Dave_Ham

Hi there,

Going to take a punt that if you get your Experian rating that it has not matched some of your previous mortgages and therefore a low credit score.

I will take a further punt that if you went directly to one of a few specific Building Societies or via a broker, you could get financed at 85% subject your account looking sensible.

Given the commission which some lenders do accept, I do not think 5 * base salary only would preclude this from finding you a lender.

Get a better broker or do some serious online research would be my suggestion..

Some Building Societies will only lend to specific geographic locations though so check first.


Good luck