70k deposit but bad credit rating?

dimple123

My partner and I have a 70k deposit and we're looking to buy a property in the region of 100k. Yesterday I did the nationwide online decision in principle, and I was declined. I can only assume it's due to my credit rating. I'm not sure exactly why it isn't that great, but when I checked my credit rating it said it was poor. There were several reasons such as my age, not being on the electoral roll for my current address, and the fact I'd opened up multiple bank accounts in a short space of time. However I opened the accounts a year ago now so surely it shouldn't affect it. I also have a credit card which I pay off in full every month. I'm not sure about my partners credit rating but I assume it's no better than mine. Anyway is it still possible to get a mortgage considering our deposit is quite substantial?

GMS

Get copies of Experian, Equifax and Call Credit reports and speak to a broker.

What are your ages? Incomes?

Any defaults, CCJ's, IVA, bankruptcy, missed payments?

Dave_Ham

Potentially yes, although we will just be speculating until you understand the reason for the decline.

In order to achieve this, you need to get both of your Experian, Equifax and Call Credit files

Once you share this information, or take them to a broker you will understand your options more.

Having a deposit like you have, will certainly help find you solutions..

dimple123

GMS wrote: »

Get copies of Experian, Equifax and Call Credit reports and speak to a broker.

What are your ages? Incomes?

Any defaults, CCJ's, IVA, bankruptcy, missed payments?

we are both 21, my partner earns 13k a year and I'm a full time mum at the moment. We also get around 6000 in tax credits/child benefit although I'm aware some mortgage lenders don't take benefits into account.

dimple123

GMS wrote: »

Get copies of Experian, Equifax and Call Credit reports and speak to a broker.

What are your ages? Incomes?

Any defaults, CCJ's, IVA, bankruptcy, missed payments?

Any defaults, CCJ's, IVA, bankruptcy, missed payments? - No to any of these

dimple123

Dave_Ham wrote: »

Potentially yes, although we will just be speculating until you understand the reason for the decline.

In order to achieve this, you need to get both of your Experian, Equifax and Call Credit files

Once you share this information, or take them to a broker you will understand your options more.

Having a deposit like you have, will certainly help find you solutions..

Thanks I think a broker is definitely our best option

Dave_Ham

Agreed, this is likely to be achievable although the source of the deposit is likely to be verified given the rest of the variables.

somethingcorporate

I agree with the rest, don't waste any applications - go and see a broker who will help you avoid applying to lenders that will not look at your situation as you require (i.e. include benefits in the affordability calculation).

dimple123

Oh ok well the money is from my grandparents, has been in shares since I was born. I can now take it out being 21 and also I'd like to take it out now as it's gone up significantly in the last year. the source of the deposit won't be a problem will it?

somethingcorporate

Are the shares in your name or your grandparents?

If the latter you will just need them to provide a letter saying they are a gift and they will have no interest in the property that you buy but again a broker can guide you through all this.

It shouldn't be an issue.

dimple123

think they're in their name at the moment, but if I just need them to prove that it's a gift then this won't be a problem. thanks very much