FTB - got my deposit, no credit history...

vix84

Hi all! looking for some advice... im aged 27, earning £27k, got £40k deposit, no student loans or debts.... my question is, should i build up some kind of credit history before i apply for a mortgage? or will all other factors be taken into consideration? i have just taken out my first ever credit card, i plan to pay it in full every month... so do i have a hope in hell of buying a flat in london ?! :-s ... should i wait a little longer or just go for it?

Londonswan

Having some form of credit is actually seen as a good thing, so having a credit card and making small purchases on it on a regular basis is good (ie weekly shopping) just make sure it's repaid each month.

Worth having a look at shared ownership properties, some good ones out there and with that salary and deposit you should qualify for some of the London based ones

mattdragon2

Get yourself on the electoral role if you haven't, this gives you a credit rating, you won't be able to get a mortgage without being on it from when I last tried (maybe it's changed?).

I also got a credit card and used everything to pay on that but made sure to pay it off as soon as I payed for something on it.

That's all you pretty much have to do.

Starbrite

Can you get around having a credit card? I'm on the electrol roll have a mobile phone contract and now no debts, had debts 3 years ago and I paid them all off

I think credit cards are the invention of the devil and have no plans to even own one.

Is this the only way to get a credit rating?

boat_girl

Not suggesting you should get a credit card if you don't feel comfortable but in my experience if you use them with discipline then they are a good thing. I have quite a few for various uses and always pay off in full every month so never pay a penny in interest. One gives me tesco points, one is good for use abroad and one gives me play points that I save up for Christmas.

mattdragon2

Starbrite wrote: »

Can you get around having a credit card? I'm on the electrol roll have a mobile phone contract and now no debts, had debts 3 years ago and I paid them all off

I think credit cards are the invention of the devil and have no plans to even own one.

Is this the only way to get a credit rating?

Being on the electoral will provide you with a credit rating. That should be enough to get a mortgage, a credit card just helps your chances.



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savingmummy

Well done saving 40k what an achievement :j

Personally i would continue to add to that deposit whilst building up your credit history. Be VERY careful with them CC`s
Not forgetting some money set aside for fees, other home costs etc.

How much are the flats in the area you want to buy?

sharneM

Hi,

Just thought id let you know that my partner and i have been accepted for a 95% mortgage although not in London and not for alot
but we both have never had any debt, any loans and my partner only has 1 CC he only used a couple of times the only thing we have is overdrafts but and we still got accepted.

Maybe it is worth just going into the bank/ mortgage advisers tell them what you have etc and see what they can do for you then you know what you then work towards?