I may fail to get a Mortgage as I have never borrowed or had any debt

Mozette

Matthague wrote: »

It was a mortgage broker and we did get the mortgage (although that could be down to the fact we offered 40% deposit!)
PAYG phone, bills paid immediately no direct debits, no sky tv.

Why buy something you can't afford? It kills me having to get a mortgage as i know it's borrowing and goes against me never having anything I can't pay for.

They can see my bank statements if they wished and could see that i've saved the money. Can see why (as they can't trust) but Innocent before guilty and all that.

Having credit doesn't mean buying things you can't afford. I have credit cards - in fact by just using them to buy stuff I would buy anyway - food, cleaning materials etc - I gat about £200 cashback a year for nothing. I pay my bills in full, and I would be buying the stuff anyway, so I really can't see anything 'wrong' in what I am doing.

Matthague

But you're seeing credit as 'guilty'. It's not necessarily. Credit is something you build up as proof you can pay stuff back. Like it or not, a mortgage is 'borrowing'. It's not about guilt or innocence, it's about risk to the mortgage provider. They are lending a lot of money which they're adding interest to. They have to take some precaution to ensure that money can be paid back. Just because you save and don't overspend does not necessarily mean you'll pay back a 'loan' (ie mortgage).


I don't think I've put that having a credit card is a bad thing, Indeed as pointed out it can be useful and gain cashback.

I just felt it was wrong that you have to have "borrowed" to have more of a chance.

I was offered the mortgage, The title was simply saying that I might have failed (as could others) by my lack of asking for credit.

I can't see any risk for the provider... they'd pay the shortfall after my deposit and i'd pay them back. if I defaulted they'd own the house which as i would have paid the majority on would mean they'd be getting the better end of the deal... (and i'd end up with nothing so really it's my risk?)

hazyjo

They would lose the promise of interest, for a start... that's how they make their money.

The title says 'I may fail...' As others have interpreted, it appears to mean that you have applied for something and may get refused. There's nothing indicating you got the mortgage offer.

Jx

kingstreet

Not all lenders credit score.

Plenty have a human being decide who gets a mortgage and who doesn't.

If you don't want to play the games of the "big boys," as it is the bigger players who use automated credit scoring systems, that's fine.

Your mortgage rate will reflect your choices.

cpdc1030

jamie11 wrote: »

Not in my eyes. Well done for not falling for the hype that to be successful you have to borrow.

"Neither a borrower nor a lender be"........good advice then and still is now.

If you feel more comfortable that way.

I'll be happy with my mortgaged flat that costs me far less than renting, and taking holidays on 0% purchase credit cards whilst getting a much better than 0% return on my savings in the meantime

[Deleted User]

Pay for stuff on Credit card, pay back the month later (no cost), built up a good credit score AND get cashback (e.g. airmiles, cash or in my case; play.com points)

Oh yes, it's a mugs game