PLEASE HELP...this site highly reccomended

Hi all struggling to get a mortgage first time buyer!! don't know what to do...i will try not to bore you..so heres the hard facts

ran up debt 10 years ago
wasn't on electrol roll
using building society
debt written off via statute barred
equifax score now 746
lack of credit history!
joined HSBC 7 months ago
on the electrol roll
got overdraft
credit card
was given a loan of 7k if i wanted
applied at Leeds Building society (refused from lack of credit)
applied at HSBC (refused lack of credit)

I'm really confused what to do, i'm looking at a 90% LTV on a 66k house i have a deposit AND proof of the deposit..

what should i do, i have a meeting with Santander on tuesday but feel it's a waste of time as they will say the same and my credit score will suffer..

thankyou for ANY help in advance
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Replies

  • kingstreetkingstreet Forumite
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    Stop running in and out of lender branches waving your hands in the air having pointless speculative credit searches which will harm you the more you have done.

    Order all three versions of your credit file and put them in the hands of a whole market broker. Ask friends and relatives for a recommendation.
    I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.
  • ACGACG Forumite
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    Haha! I love this post.

    Most people write war and peace talking about feelings and emotions, you have gone to the other extreme! Love it!

    I cant actually add anything to Kingstreets post.

    Making applications without knowing if they will accept you is causing more harm than good. The credit agencies are equifax, experian and Noddle.co.uk.

    Once you have those, forget the score its the back pages that are more important - what is showing on your report.

    A broker will look at these and try to place with a broker who will accept it.
    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.
  • edited 28 February 2014 at 12:16PM
    holly_hobbyholly_hobby Forumite
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    edited 28 February 2014 at 12:16PM
    Ok, well your credit score with agencies on line is irrlevant for a mge.

    Your bad debt is over 6 yrs old so should have fallen off your credit record - so that shouldn't be causing an issue (unless its with part of the lendin group you've approached and they have an internal trigger, which they won't admit).

    So if I were you I would obtain a copy of my credit records (eg - checkmyfile or noodle (which is callcredit and free), to see that eveything on there is correct, both debt, addresses (linked addresses), linked people, and/or any errors or abmnomilies you may spot.

    Lenders typically do not reveal why a mortgage has been declined, so who exactly told you with each lender, that it was solely due to lack of credit history, which from what you have said may not be accurate in any case (unless you don't use your credit card).

    Are you dipping into or entirely using your overdraft facility each month ? (as this can signify financial mis-management/living beyond means).

    Are you using your credit card ? Is it maxed out, or farily near to your ceiling ? Do you just make minimum payments, or clear it each month ? (again if maxed out or close to it, this affects affordability and status assessment).

    If your answers are no OD useage, and minimal or indeed no-credit card use (so they can't see how you manage a regular commitment), I would be tempted to advise you to seek out a non-credit scoring lender, thats not the same as no credit checks, the difference being the application will be manually looked at by an UW, where you can also present supporting evidence where/if reqd - of course you need a broker - but as a heads up Coventry BS don't credit score and for direct business will lend nationally (but have geographical restrictions for introduced business, so not all brokers have access) .

    Hope this helps

    Holly x
  • i don't actually use my credit card, no loans, nothing..so i'm hearing really i need to see a broker NOT santander..
  • elsienelsien Forumite
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    You need to be using your credit card responsibly and paying it off in full every month to build up a better credit history, I would have thought?
    All shall be well, and all shall be well, and all manner of things shall be well.

    Pedant alert - it's could have, not could of.
  • edited 28 February 2014 at 12:56PM
    holly_hobbyholly_hobby Forumite
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    edited 28 February 2014 at 12:56PM
    The lack of credit history will generally negatively affect credit scoring for those individuals whom have no other rental or mortgage history, so yes a broker is your best bet for a quick placement (without racking up further unnecessary credit searches), whom should use a non-scoring provider.

    Unless you wait a bit and start using your CC for small purchases, paying it off each month end - that way you're building a picture for the lender of how you service debt.

    Hope this helps .. good luck

    Holly x
  • dimbo61dimbo61 Forumite
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    That is right see a whole of market mortgage broker!
  • kingstreetkingstreet Forumite
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    mistereef wrote: »
    i don't actually use my credit card, no loans, nothing..so i'm hearing really i need to see a broker NOT santander..
    Going direct to another credit scoring lender is likely to see the declines increase to three, I'm afraid.

    It's probably too late to start using your credit card now, unless you plan to buy in six months.
    I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.
  • mmm, i thought as much, i think the options i have is six months of credit card use then try again OR whole market broker...

    it is indeed a GREAT forum, thanks everyone for the fast and clear response..))
  • PeacefulWatersPeacefulWaters Forumite
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    mistereef wrote: »
    mmm, i thought as much, i think the options i have is six months of credit card use then try again OR whole market broker...
    Do both. Not one or the other.

    Try to get the deposit up to 15% too.
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