Mortgage payments, parents and credit scores (complicated)

Edjben · 16 June 2014 at 6:40PM

Dear all, this is my first post on a forum anywhere so my apologies if i miss the ball on any etiquette. This a bit of a long complicated situation with a few bits and bobs to consider so I hope someone can help.
I'm a mature student and in February my wonderful parents helped me on to the property ladder fronting a decent deposit for a house and co-owning til I graduate in 3 years when I will buy their stake off them. I 'own' 1/3, they the other 2/3s. Both mine and their share of the mortgage is paid from their account.
However, when I recently applied for a credit card I was rejected which I thought slightly funny. I've been in my overdraft for years but aside from a few mishaps have kept within the limit. I've paid all my bills on time and any other credit I've had in the past has been settled.
I decided to order my credit report and two queries have arised.
1. It hasn't linked me to the mortgage company. Does the payment have to come from my account for this to be considered
2. Also when I moved in February I immediately registered on the electoral register and this wasn't on the report, could this be the reason?
Any advice would be greatly appreciated
Regards
Ed

thebritishbloke · 16 June 2014 at 6:45PM

Edjben wrote: »

Dear all, this is my first post on a forum anywhere so my apologies if i miss the ball on any etiquette. This a bit of a long complicated situation with a few bits and bobs to consider so I hope someone can help.
I'm a mature student and in February my wonderful parents helped me on to the property ladder fronting a decent deposit for a house and co-owning til I graduate in 3 years when I will buy their stake off them. I 'own' 1/3, they the other 2/3s. Both mine and their share of the mortgage is paid from their account.
However, when I recently applied for a credit card I was rejected which I thought slightly funny. I've been in my overdraft for years but aside from a few mishaps have kept within the limit. I've paid all my bills on time and any other credit I've had in the past has been settled.
I decided to order my credit report and two queries have arised.
1. It hasn't linked me to the mortgage company. Does the payment have to come from my account for this to be considered
2. Also when I moved in February I immediately registered on the electoral register and this wasn't on the report, could this be the reason?
Any advice would be greatly appreciated
Regards
Ed

What 'mishaps'?

1. My guessing is you're not on the mortgage. I can't see them having 3 people on a single mortgage, plus you're a student, no bank would give you a mortgage.

2. It can take a while to update, ask your local council to update them.

Edjben · 16 June 2014 at 11:53PM

thebritishbloke wrote: »

What 'mishaps'?

1. My guessing is you're not on the mortgage. I can't see them having 3 people on a single mortgage, plus you're a student, no bank would give you a mortgage.

2. It can take a while to update, ask your local council to update them.

Thanks for the reply
'Mishaps'- On a handful occasion some years ago I went over my overdraft limit.
The mortgage is in my parents (as a couple) and my name. 1/3 of the property and the mortgage is in my name.

Tixy · 17 June 2014 at 11:47AM

Which credit reference agency did you check?
It could be that the mortgage company report to one of the other agencies?
And your parents should both show as financial associates on whichever file(s) the mortgage company report to.

In terms of the electoral roll I would chase this up as you should be showing on it by now from Feb. Do you know if it is is just 1 of the credit ref agencies that have you missing from the E/r? if so chase up with the e/r and you may need to check the address format is the exactly the same on your credit file as the official address the council use.

If it is missing from more than 1 credit ref file then chase with the council to confirm you are on it, as well as with the agencies.

The rejection could have been caused by you appearing not to be on the E/r, obviously that depends on which agency file the card company checked.
Or it could be down to your circumstances, recent move, being a student etc.

james.maperson · 17 June 2014 at 11:15PM

Hi Ed

The Electoral Roll could be a reason in itself. People do get approved whilst not being on it, but it's one of the most common reasons to be refused.

I am assuming that as a mature student you do not currently have an income, and as thebritishbloke alluded to with the mortgage, this could stop a credit card application also.

If exceeding the overdraft has resulted in missed payment history on your report (the lender would be entitled to record adverse history as you are going outside of the agreed Terms), then this would show, and could be a factor, but if it doesn't show, you got away with it and it won't be

As for the non-showing mortgage, I'm going on the assumption from your comments that this is a joint mortgage. The account should show on your credit report as well as that of your mum and dad. In line with Tixy's comments, they may report to another CRA. However, nearly all High St lenders will share with Experian and Equifax. If it's a building society, then these can be more hit and miss.

I would contact the CRA to get them to look, if you have a tricky address and the lender has recorded the account differently to the address you gave when you ordered your report, this will be a reason why it doesn't show. Also, you will need to have provided the address to the CRA where the mortgage is held in order for it to show on the report they have produced for you. I should add that both of these reasons can also explain the missing electoral registration too, and whilst the VR takes ages to get from the council to reference agencies, ask the CRA to have a look for it.