Improving credit rating for first mortgage

miriamb_2

Hi,

First time poster so pls be gentle!

My partner and I have decided that we want to buy our own home. We applied for statutory credit reports (he used Experian, I used Equifax - I thought they'd all have the same info...) and they came back clean. We're both on the electoral roll and in permanent FT employment joint income 60k. Found a house, applied for a mortgage, got declined.

So, we both signed up to checkmyfile and creditexpert, and it turns out my partner has a 3 yr old CCJ approx £900 (from a past relationship) that only showed on Equifax. Experian haven't a record of it so this was a bit of a shock. He's now contacted the court for more info and to see how/if that can be dealt with. We understand we may have to wait 3 years for it to drop off.

Next, we thought about trying to proceed in my name alone. Checkmyfile shows my credit "score" as 832, which still isn't great. I've now cancelled a Capital One CC that I wasn't using, and reduced my limit from 3.5k to 1.5k on a nil balance Halifax CC. I'm going to make small purchases on that and repay in full each month to build up more lending history. My overdraft is infrequently used and I have no other debt or credit agreements.

I've today received my PIN for creditexpert and have an even worse credit rating with them of 766, which seems to be because they have absolutely no info on me. No record of either CC or my current account overdraft.

First q - is there anything more that I can do to strengthen my credit rating in the eyes of mortgage lenders?

Second q - should I open a new credit account just to get evidence of repayments on Experian? Searches (for insurance quotes etc) are showing but no actual credit/repayment history.

Thanks in advance!

bigadaj

How much do you want to borrow and what deposit do you have.

These are more important elements than what you have asked about, would be useful to put regular spending through your card and pay in full. Keep out of your overdraft and close it if you can.

miriamb_2

Thank you; we were originally looking at houses circa £175k with a £20k deposit. On my income alone it'd be diff properties, iro £140k, same deposit.

I don't use my overdraft tbh - apart from a spike of £150 at Xmas, otherwise it hasn't been used this year at all (it's only 450). I'd not miss it so I guess that can be closed down too.

Is there nothing further that I can be doing to strengthen my credit rating generally? I'm aware that I/we could borrow with sub-prime lenders but I don't want to go down that route. I'd much prefer to have a stronger credit rating and use a better lender

Thrugelmir

Settling the CCJ would be a step in the right direction.

miriamb_2

Thanks - my partner is dealing with that.

Nothing else that I can be doing for my credit rating...?

DVardysShadow

Before you settle the CCJ, look at whether it should be set aside. If the winner of this CCJ is in anyway responsible for papers going astray or if they delayed in such a way that they are responsible for not being able to contact your OH, it may be possible to get the CCJ set aside.

Don't rush to settle it if you feel a set aside is possible - it may be easier to engage the winner of the CCJ in getting it set aside as part of a settlement which gives them their money - rather than leaving it until after the money is paid, when they won't be the least bit interested or cooperative.