First time buyer - good salary + no missed payment - still can't get a mortgage!

johnjones123

Hi All,

I've tried a number of banks to get a 90% LTV (£162k mortgage).

Experian rating is 750/999, equifax is 483/600.

I have one credit card with a limit of 3k and have had a personal loan for £3k in the past. I've never missed a payment, no negative points on my report.

Any tips for getting a mortgage or building my credit up enough so I can?

All lenders say affordability is excellent (it's well within what others would get on my salary) but the credit score limits the LTV.

John.

holly_hobby

The "scores" promoted by online credit checks have little to no bearing on how a mortgage lender scores a mge application.

If affordabilitiy, and adverse credit (ie ccjs/defaults/banktupcy orders ) aren't the issue re the decline (as you say you lender has inferred) - it may well be the amount of available rolling credit, under your CCard thats causing the issue - solution (if you don't want to try another more flexible lender via your mortgage broker, where the available credit won't have such an impact) is to ask your ccard provider to reduce your credit limit.

Hope this helps

H x

opinions4u

1. Make sure you are both registered to vote.
2. Save up a 15% deposit.
3. Pay all your bills on time.
4. Always pay more than the minimum payment on the credit card. Ideally clear the balance in full.

kingstreet

Use a non-scoring lender.

A whole market broker will have no problem placing this. If you are "rate chasing", with the likes of HSBC, you're coming unstuck because they want top scorers for 90%.

ethank

HSBC turned me down even though I have a 3.5k overdraft, a credit card, and loans with them. I always dip into my overdraft for upto 1k for a few days every month (awaiting my partners contribution to housekeeping) - they told me that I failed because I used my overdraft! They are ridiculously strict!

matttye

ethank wrote: »

HSBC turned me down even though I have a 3.5k overdraft, a credit card, and loans with them. I always dip into my overdraft for upto 1k for a few days every month (awaiting my partners contribution to housekeeping) - they told me that I failed because I used my overdraft! They are ridiculously strict!

Consistently using an overdraft is usually seen as (whether true or not) money mismanagement - living beyond your means.

Not sure I'd agree with that being ridiculously strict to be honest!

AndyGuil

Going into unauthorised overdraft can potentially cause issues. Going heavily into a large overdraft consistently can cause issues too.

ethank

matttye wrote: »

Consistently using an overdraft is usually seen as (whether true or not) money mismanagement - living beyond your means.Not sure I'd agree with that being ridiculously strict to be honest!

I know what you mean. It's funny they have not considered the 8.5k is savings I have with them........

Thrugelmir

ethank wrote: »

I know what you mean. It's funny they have not considered the 8.5k is savings I have with them........

Lenders do not have the time nor the resource to review every application in fine detail. If you are unable to maintain your current account in a credit position then that's your problem. Plenty of other suitable potential borrowers are in the queue.

R_P_W

ethank wrote: »

I know what you mean. It's funny they have not considered the 8.5k is savings I have with them........

Yeah seriously sort that out!

Use your savings to keep out of the over draft and probably should clear you card and loan with it as well.

billchecker1

It would have made far more sense to "dip in" to the savings, then paying back after you get the house keeping.

Instead you now have months worth of negative marks on your file as you have been dipping into your O/D.

It is a real shame financial education doesn't exist in sites other than this as people can fall foul without any need.