Questions regarding a mortgage

spainboy1281

HI. I was a first time buyer one year ago and bought myself a flat for £46000, I put down £17000 so my mortgage was £29000. At the time the job I was in was a full time permanent earning £17k per annum so I could have borrowed more if I wanted to.

Now I really want to sell my flat and buy a small house,in the region of £80k which I can get in my area, I have changed jobs since now with the Royal Mail on a permanent but its part time (around 15k) but my overtime is regular to about another £5k per year on top. Im with Lloyds and happy to stay with Lloyds, they do an online calculator which includes any overtime I do.

here are my questions.

1) Ive always kept up to any payments on Cards etc and never been late, my experian score is in the excellent catagory but for some reason in the last year Im getting knocked back for credit (say if I want to buy something interest free from a store). I went to buy a £600 TV from Currys a year ago on 12 months interest free and was really shocked that they knocked me back.
Ive no idea why but I was wondering if this flat I bought is linked to previous debt so would Lloyds need to do another credit check on me even though Ive got a mortgage with them? I do bank with them and my wage goes into my Lloyds account.
I dont want to try and sell my flat and then find out I cant get another mortgage cos of some black mark on my credit even though ive no idea what it is.!!! So what would be the advise to find out they will definately lend me money before I put wheels in motion in trying to sell my flat.!!!!??

2) secondly regarding the overtime. Do Lloyds (or other banks) take my word for it or do they write to the employer? Its no big deal but id have to make sure my manager would co operate

kingstreet

Your inability to get unsecured credit is probably about your short residence in your current home and possible lack of electoral roll appearance?

Only people are affected by adverse credit, not properties. Your suggestion that the property is an issue is wide of the mark.

Variable earnings are normally based on latest three months' payslips.

spainboy1281

Ive just reactivated Experian and my score is 999 with no negative factors and im on the electoral role. So you do you think its unlikely this would be a problem with a mortgage?
Also is there any way of knowing I will be allowed to borrow and being accepted to borrow what I need to buy a house after selling my flat? I mean I dont want to sell my flat and then Lloyds turn around and tell me they wont lend me the money!!

kingstreet

Your CRA "credit score" is worthless until Experian start lending money.

Your score with a lender is based on the application data and the data it takes from a CRA, which may not be Experian.

spainboy1281

Ok. lloyds used Experian when I got my FTB mortgage last year as its on my list of previous serches.

kingstreet

Sorry, perhaps I was unclear.

A lender's credit score is based on the raw data it takes from its chosen CRA(s) and the data from your application.

It does not take the credit score allocated by the CRA which, among other things is not based on your employment, nor income as it does not have this data.

I do hope that clarifies. If you are paying Experian, it may be a good idea for you to stop.

spainboy1281

Thanks. I only rejoined for a month only now and again. Ill unsubscribe on monday again.
All these credit scores are rubbish nowadays. Ive never been in debt, I have money in my bank,and I always pay things on time,never ever been late but I cant get a £600 tv from currys on interest free and embarassingly also got knocked back from buying a £500 sofa from IKEA on interest free even though I had the money to cover it various times over.

pcgtron

I'd suggest buying the TV outright if you can afford it then you wouldn't get knocked back. If you dont have the money to buy the TV, save the money to buy the TV, then you wouldn't get knocked back. If you can't save the money to buy the TV, you can't afford the TV. It's win win really

spainboy1281

pcgtron wrote: »

I'd suggest buying the TV outright if you can afford it then you wouldn't get knocked back. If you dont have the money to buy the TV, save the money to buy the TV, then you wouldn't get knocked back. If you can't save the money to buy the TV, you can't afford the TV. It's win win really

Its not about the TV mate. It was an example that I was pointing out in regarding credit checks as I want to sell the flat I purchaed a year ago and buy a house which means i'll need £30k more so I was asking if Lloyds (who im with) will need to do another credit search and if they do I was trying to work out how I would go about it prior to me selling the flat.
I mean I dont want to sell the flat and then get knocked back because I failed a credit search.

RavingMad

Perhaps you could approach Lloyds and see if you can get an AIP before you start the ball rolling on selling your house?

kingstreet

spainboy1281 wrote: »

I was asking if Lloyds (who im with) will need to do another credit search and if they do I was trying to work out how I would go about it prior to me selling the flat

Yes, it's a new mortgage application when you wish to move house, so the usual checks will be done.

As suggested, as the lender for an agreement in principle first.