Help: Credit report and mortgage advice please.

juiceylucie85

Hi guys,

I was wondering whether anyone could please offer me some advice.

My husband and I are about to apply for a mortgage on monday, we were accepted on a house last month but after going back and forth with a mortgage advisor who pretty much wasted our time we lost a month.

So the situation is, I originally thought my credit score was really bad, I was constantly in my overdraft and missed a few payments on my credit card, whilst my husband carried on working and dealt with all our payments. But I applied for a credit report a few days ago, it turns out my score is 869 "Fair". It says that my 2 negative factors are:
"You are not on the Electoral Roll as a current occupant at your current address.
You have no successfully settled credit account"

2 weeks ago I paid off my credit card and cleared my overdraft, because I was sitting in my overdraft for so long my bank sent me a letter telling me they we're cancelling my overdraft and that I must clear the funds (which I did). So even though I cleared it 2 weeks ago, today I noticed that my bank has taken the over draft option off (which I knew they would do) My question is, when will this update on my credit report? As I know this is to do with the negative factor. Since it's been cleared, is there a way for me to update the credit report a lot sooner than waiting 4 weeks?

I read that anything above 800 generally means "Excellent" but im classed as being "Fair" on the report, is it because of the 2 negative factors?

So my big question, because I originally thought my credit score was bad I told my husband to apply for the mortgage without me incase my scoring affect the application. My husband did a check on himself, a few days ago his score was 900+ today we checked and it dropped lower than 820. This is because a month ago our car was stolen from the driveway, last week the insurance settled the finance and during that time we bought a cheaper car on finance to get around. I think the credit report was just updated showing 2 cars on finance even though our first car has been settled and paid for, and we are about to receive keys for a new business next week so last week my husband had to open a business account which he was credit checked for and apparently that marked his score too. So with all this going on, I think it has changed our original plan of letting him being the main person to apply for the mortgage. With my current scoring, should I apply for the mortgage with my husband. I have this idea in my head that my credit history would damage the mortgage application, but now after seeing my credit score and with my husband's score having dropped would it make sense for me to apply for a mortgage with my husband to help us get a bigger mortgage?

Any advice would really help and I would really appreciate it

kingstreet

Ignore the "scores," "fair," "excellent" and the rest of the nonsense.

If you are paying for this hocus-pocus, stop now as it will do nothing for you, apart from whip you into a frenzy of micro-management which will not improve your chances of a mortgage.

Get all three versions of your credit file and take them to a good broker offering whole of market or independent services.

The basic issues for a mortgage are;-

- get on electoral roll now
- three years or more at same address
- three years or more in same job
- good credit payment history
- no adverse credit entries
- lowest possible loan to value, highest deposit possible.

You may not be able to score well on all the issues, but you can hope that some of the better issues outweigh the lesser ones giving you enough to pass.

A broker may advise you to use a non-scoring lender who will judge your application on its merits.

GMS

Will the new business be the only employment?

If so this may well be a bigger issue than any credit history.

The credit report should have a 'last updated' date for each account. Take a month later for the updated figures to show, assuming there has been time for the lender to report.

How much are you looking to purchase for? How much deposit?

What is/will be your employment situation? Income(s)?

juiceylucie85

wow guys thank you for such a quick response!

kingstreet wrote: »

Ignore the "scores," "fair," "excellent" and the rest of the nonsense.

If you are paying for this hocus-pocus, stop now as it will do nothing for you, apart from whip you into a frenzy of micro-management which will not improve your chances of a mortgage.

Get all three versions of your credit file and take them to a good broker offering whole of market or independent services.

The basic issues for a mortgage are;-

- get on electoral roll now
- three years or more at same address
- three years or more in same job
- good credit payment history
- no adverse credit entries
- lowest possible loan to value, highest deposit possible.

You may not be able to score well on all the issues, but you can hope that some of the better issues outweigh the lesser ones giving you enough to pass.

A broker may advise you to use a non-scoring lender who will judge your application on its merits.

to be honest, even though I received my credit report today I have been scrutinising and obsessing over it but only because I know we're about to apply for a mortgage on monday.

As for being on the electoral roll, we previously lived in an apartment for 5 years and they said we couldn't be registered because its an apartment, I read that if I were to apply to be on the electoral roll it would take over 7 weeks, I need to apply for the mortgage by monday although I have been in the same employment for over 5 years

In regards to good credit payment history, I had a small loan which I paid on time each month and that was cleared last year, I then had one credit card which I generally pay on time but during the house move I missed a couple of payments.

juiceylucie85

GMS wrote: »

Will the new business be the only employment?

If so this may well be a bigger issue than any credit history.

The credit report should have a 'last updated' date for each account. Take a month later for the updated figures to show, assuming there has been time for the lender to report.

How much are you looking to purchase for? How much deposit?

What is/will be your employment situation? Income(s)?

The new business will not be our only employment, we have a limited company which has been running for over 5 years, my husband is a director of 3 businesses, the one we have been running for 5 years, the new business which we are about to open and he recently took over an existing business. I hear that these will not count during the mortgage application?

The house we are purchasing is £315k and the deposit will be 50% My husband is self employed and ive been the manage for our business for over 5 years. I hope this helps?

GMS

Broker would be if use here.

What income figures do you have for the established businesses?

Salary, dividends, retained profits for latest 3 years.

juiceylucie85

GMS wrote: »

Broker would be if use here.

What income figures do you have for the established businesses?

Salary, dividends, retained profits for latest 3 years.

The existing business my husband has taken over the sale of it just finalised last week, is it true that we can't use the figures of this business because he has only just taken over it?