Noticed some changes? You can read all about the improvements we've made on the Forum in our latest announcement. We also have a new set of Forum rules so please take the time to give them a read and familiarise yourself.

Refused credit for mortgage

edited 30 November -1 at 1:00AM in Mortgages & Endowments
7 replies 676 views
bigemdogbigemdog Forumite
3 Posts
edited 30 November -1 at 1:00AM in Mortgages & Endowments
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!

Replies

  • ThrugelmirThrugelmir Forumite
    81.5K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    ✭✭✭✭✭✭
    Yes most likely.

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

    Alternatively buy a cheaper property to reduce the LTV.
    It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong." — George Soros
  • ACGACG Forumite
    21.4K Posts
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    ✭✭✭✭✭
    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.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • 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?
  • GMSGMS Forumite
    5.4K Posts
    Tenth Anniversary Combo Breaker
    ✭✭✭✭
    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
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • droidermdroiderm Forumite
    778 Posts
    Seventh Anniversary 500 Posts Combo Breaker
    ✭✭✭
    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.
  • 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!
  • ACGACG Forumite
    21.4K Posts
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    ✭✭✭✭✭
    Whos your local building society?
    The more info you provide us the more we can help.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
This discussion has been closed.