Refused credit for mortgage

bigemdog

Hi,

hope Ive put this is the right section, could really do with some advice!

Ive been for a new mortgage today & been refused credit based on my past history - i have checked my credit report and have excellent rating, the only 'bad' bits are that i missed in total 8 store card repayments (minimal value) over several months more than 2 years ago.

Could this be why my credit has been refused, and what can i do to improve my profile so i can credit for a mortgage? I have no otustanding debt, no credit cards, overdrafts, loans etc.

Help!

Thrugelmir

Yes most likely.

Maintain a squeaky clean credit record and continue to build your deposit.

Alternatively buy a cheaper property to reduce the LTV.

ACG

Is this a remortgage or a purchase?
Whos the lender?
Whats the LTV?

Missing 8 store card payments isnt something minor, 1 or 2 might be but 8 is quite a lot.
Thats not to say you cant get a mortgage but if your looking at the best rates or high LTV then you could well struggle.

bigemdog

Ive got enough for a 15% - 20% deposit at the moment - thats for a mortgage much less than on earnings calcs I would be offered if my credit was good. Todays lender was Nationwide, who I've got a joint mortgage with currently (6 years old). Im in the process of breaking up with my partner so its technically a new purchase for me, following the sale of our house.

Im going to see another lender tomorrow - do I ask them not to do a credit check on me as I know what the result will be and I risk my rating getting worse if another search has been done & I get refused?

How long can I expect to wait until people will lend to me again, until the missed payments are over 6 years old?

GMS

Which lender are you going to see tomorrow?

May be better getting a broker as they can do the searching for you. Be careful of applying at random as too many credit searches will harm your credit score

droiderm

During my research I have noticed lenders that don't look at those missed payments beyond a certain time period
I am sure there are lenders out there.

bigemdog

My local building society tomorrow. I will ask for just an affordability assessment tomorrow then & look into a broker to do some checks without harming my credit score.

Thanks everyone - hopefully I'll be able to find someone to lend to me, otherwise I'll be renting a room off my parents!

ACG

Whos your local building society?
The more info you provide us the more we can help.