First Time buyer, Poor Credit Rating & in the UK less than a year

ntjones

Hi Guys.
I've been trawling through the forum to try and find some posts that are in a similar situation to mine own but haven't been able to. Any advice or guidance offered is greatly appreciated!
To explain my situation;
I'm single 31 year old male with no dependents and I moved to the UK nearly a year ago from Ireland. I started a job pretty much as soon as I moved over and I have had the same job since. I have also been moved onto a full time contract with a 30% pay rise.
I'm now trying to secure a mortgage, I've checked my credit rating with Experien and it's coming back as poor ( score of 625) so I am very doubtful that I will be approved for a loan.
These are the reasons why
Here for less than a year.
Just been accepted onto the Electoral register but Experien has not updated yet.
never taken a loan out,
have 1 current account with £500 overdraft which I have never had to use.
1 savings account
1 credit card account ( Capital one are the ones to would give me a card)

Looking at the above I think it will be difficult for me to get a mortgage, but I am hoping that I have some plus points

I will be able to get a deposit of between 20 and 30K together

Ideally I am aiming to buy a house that needs refurbishing, live in it while i am doing it up and then sell it on, or at worse live in it and rent a room out.

The price range I am looking in is between £80K and £120K and I understand that at the lower end of this estimate it would most likely need to be an auction property.

And as I am the youngest in the family my parents have willed the house to me, I' not sure if this would have any bearing on
my application but in a last case scenarios would it be possible to borrow against this house, providing it won't make my parents homeless.

I have a call with a mortgage broker next week but I just wanted to ask the opinions of others, should I just keep working on improving my credit rating before I apply. and will getting a second credit card help me to do that?
Also maybe another couple of things worth noting.
I bought a car 2 months ago and paid for it out of my savings
I have a couple of sidelines buying and selling on ebay which means that there can be upto 5k a month moving in and out of my current account, will this volume of money have any effect on how my bank account is viewed?
If you've made it this far thanks for reading my long winded post and any advice you can offer would be a massive help
Cheers

ACG

I reckon there will be a home for this, but i would go via a broker as not all lenders will accept it.

Dave_Ham

Totally agree there should be a home, but 2 things:

• Do not apply for another card, the capital one card will suffice to support building a stronger credit file.
• Open a separate account for Ebay or use your Capital One Credit Card (if you can as don't really use Ebay/Paypal)

If your artificial score is low (and there are understandable reasons) to go with a manually underwritten lender, they may want to see separation between Ebay income/outgoings and your normal transactions

ntjones

Hi guys,
thanks for the advice and apologies if this was posted in the wrong place, I'm just in the process of splitting out my ebay earnings into a separate account and I should have that sorted pretty soon.
Thanks again for your help