"Untouchable" by mainstream lenders over a "trivial" issue.

combineharvester

Hi Everyone :-)
First post here, but I've lurked on and off for a while. I'm normally quite happy just learning and reading, however a situation has arisen which has concerned me, and I'd value some advice from more knowledgable folk.

I've been in a new job for the last few months, and I love the job and the area. My plan, as a first time buyer, was to pass my probationary period and then buy an apartment. Over the last decade I've moved around a fair bit, studying at various universities and working a few short term contract university research positions. Because of this moving around I've kept all of my finances (cards, billing address etc), and my electoral address registered at my parents house. I currently lodge with a family that I know, and hence don't have a rental agreement or (directly) pay any bills. According to an IFA this will really count against me, as I will have no compelling proof that I have lived in these various addresses (and particularly at my current address). They went so far as to say that mainstream lenders wouldn't "touch me" despite a good deposit, salary etc.

The IFA recommends that I should register all of my cards to my current address, and register to vote here also. I realise that they are "the experts", but I don't really see how having my bank statements posted to a different address will make me "worthy".

Any thoughts on this? Are lenders really this pedantic? I'm trying to get my finances sorted in the next few months, so this issue could really scupper my plans...

Thanks very much in advance! :-)

Thrugelmir

Electoral roll registration serves a useful purpose. As credit reference agencies use electoral roll information to confirm your identity, which is then passed onto lenders when you apply for credit, to prevent fraud. Thus, if you're not on the roll when making an application it'll appear that you don't exist, or you're starting afresh with no credit record; both will have a negative impact.

combineharvester

Thrugelmir wrote: »

Electoral roll registration serves a useful purpose. As credit reference agencies use electoral roll information to confirm your identity, which is then passed onto lenders when you apply for credit, to prevent fraud. Thus, if you're not on the roll when making an application it'll appear that you don't exist, or you're starting afresh with no credit record; both will have a negative impact.

Hi! Thanks for the comment, I should state my position more clearly: I have been on the electoral role for many years, but always at my parents address. The crux of the IFA's concern seems to be that my bills and electoral role information are at my parents address, not where I live at the moment.

My concern is whether it is sufficient to have my bank, bill, and electoral role details updated to my current address, or whether in fact that mortgage lenders require evidence of a rental agreement and bills paid at my current address (not possible as a lodger who pays an "all in monthly payment" on an informal basis.)

Cheers! :-D

GMS

Showing on the electoral roll at a different address to your residence will raise questions.

It's not just about getting post to the new address. Moving the accounts to there will mean the credit reference agencies will have a record of you there and improve credit scoring and verification.

Living with family would not need a tenancy agreement or proof of rent. Verifying you is the key

combineharvester

GMS wrote: »

Showing on the electoral roll at a different address to your residence will raise questions.

It's not just about getting post to the new address. Moving the accounts to there will mean the credit reference agencies will have a record of you there and improve credit scoring and verification.

Living with family would not need a tenancy agreement or proof of rent. Verifying you is the key

Thanks, I see. I know that banks and councils drag their heels and any change takes a while - are the credit agencies similarly slow? Additionally, do you think that a minimum amount of "verified" time at this address would be necessary (3 months, 6 months?) to show stability?

:-)

vectistim

Since all your finances are at your parents' address, why not just give that as your address for mortgage purposes?

TrickyDicky101

vectistim wrote: »

Since all your finances are at your parents' address, why not just give that as your address for mortgage purposes?

I was in exactly the same position as the OP back in 2005 when I got my first mortgage. I did what vectistim suggests and, at the time, it caused me no issues. I realise the mortgage environment may well have changed in the last 8 years though.

mrginge

vectistim wrote: »

Since all your finances are at your parents' address, why not just give that as your address for mortgage purposes?

Assuming that op has been employed in different parts of the country, saying you live in one place whilst your employment history tells another story doesn't sound like a wise move.

ejc81

combineharvester wrote: »

Hi! Thanks for the comment, I should state my position more clearly: I have been on the electoral role for many years, but always at my parents address. The crux of the IFA's concern seems to be that my bills and electoral role information are at my parents address, not where I live at the moment.

My concern is whether it is sufficient to have my bank, bill, and electoral role details updated to my current address, or whether in fact that mortgage lenders require evidence of a rental agreement and bills paid at my current address (not possible as a lodger who pays an "all in monthly payment" on an informal basis.)

Cheers! :-D

You stay with friend/family/B&B wherever during the week for work then travel 'home'. ie parents address at weekends. Thats where you 'live' ie all your 'evidence' - financial history is. The IFA wouldn't be concerned with that theory at all. The point is you would have to be making the mortgage application from your home/parents address & you've obviously given them your friends address. A credit check based on that address will find no evidence of you existing at all!! i.e the problem only arises when you try to make the application from where you are currently staying during the week

Obviously you want to buy an apartment in this area for work....cuts out all of the travelling

I can't see any mortgage broker having an issue if you put it like that.
Otherwise, if you want to make the application from where you're currently staying then you will have to change the details of all your accounts.....it depends on when you're actually looking to buy really. If its in the next 3-6 months I would leave everything as is & use 'home' ie your parents address on the mortgage application.

HTH :-)

combineharvester

Hello all :-)
I love the latest batch of suggestions! Although I don't actually travel home *every* weekend, the suggested scenario is actually pretty much the case, and stating that wouldn't make me blush with guilt (and is perfectly reasonable in my eyes)! I was hoping to purchase an apartment in around the next 4-6 month region, so perhaps keeping some stability with where my finances are registered would be wise after all. Any knowledgeable mortgage advisors / IFAs want to step in and dampen my spirits?
It's easy to panic over these little issues, but I'd prefer to ask on here and be reassured or brought back down to a harsh reality than just wing it and fail to obtain a mortgage, so thanks all.
:-)