Mortgage & Credit score

CJRT

Hello,
I am in need of some advice and help but my story is quite long...

6 weeks ago i purchased a £22,000 car, using a £15,000 loan from nationwide and trading in my old car for the rest.

2 weeks ago i received some news which means me and my girlfriend will have to move out of our parents houses and buy our own place!

This means i will now be selling the car for something cheaper and more practical. I will get £21,000 and use some of this for the house deposit etc.

I have found a house on a development near my home, its a newbuild from persimmon and i will be using the help to buy scheme. The house im looking at is likely to be around £160,000. This means the mortgage i would need would be for £120,000.

I have received a mortgage in principle based on the details i entered to nationwide and have a maximum mortgage allowance of £169,000 for now.

I checked my credit report this morning and i have a credit score of 500.
I have 2 credit cards, 1 with a £2000 limit and a balance of £0 due to this being for emergencies. The other credit card has a balance of £3000 with the limit being £5000.
Combined me and my partner will bring home around £3000 after tax which is a fair amount when running a house.

My credit report through equifax shows my status being "excellent - With a very high possibility lenders will give you credit". My credit score sits at 500.

What are my options regarding getting a mortgage?

Will it be possible with my credit score and other points i have made?

If not what options do i have?

Thank you in advance for your help! I really appreciate it!

CJ

ACG

This is a duplicate of your previous post:
https://forums.moneysavingexpert.com/discussion/4996005

CJRT

Hi,
Its not because some of the figures i put were incorrect and also the question in the other post i asked was "Can i use money from a personal loan as a house deposit"..
This question for this post is "What options do i have when getting a mortgage if my credit rating says excellent but my score is 500".
Thanks.

Foxy-Stoat_3

CJRT wrote: »

This question for this post is "What options do i have when getting a mortgage if my credit rating says excellent but my score is 500".
Thanks.

This number is not relevant in the eyes of lenders, its just a number that is given out by the credit reference agencies. If you have paid for it then you have wasted your money.

As for getting a mortgage 75% LTV mortgage with a £40K deposit, your chances are good. The fact that you took out a £15K loan less than 2 months ago may just reduce the amount you are able to borrow.

Your best bet is to sell the car, clear the loan and credit card and buy something a lot cheaper as you say. Go for a 85% LTV mortgage with no debts.

Good luck and report back.

Thrugelmir

£18k of unsecured debt won't help your application.

CJRT

Somebody else told me that the new mortgage application process may even work in my favour as they delve into the detail which isn't a bad thing for me!

Got the car up for sale now and seeing a mortgage advisor on Wednesday so I shall keep those interested posted!

Thanks for te help so far!

CJ