Do I need a credit rating to get a mortgage?

M...

Hello,

I'm not yet at the stage of looking for a mortgage, but I am looking ahead and trying to make sure I prepare myself. I've never had a credit card in my life, though my partner has one and uses it occasionally. I'm worried that as I essentially have no credit rating, I won't be successful in getting a mortgage. Are there any wise folks who can clear this up for me? Is the one credit card used by my partner enough for us to get a mortgage?

Any help appreciated!

stator

It will count against you if you haven't had much credit. I would definitely get a credit card now and start using it. Make sure you set up a direct debit to pay the card off in full every month and then you won't pay any interest.

grumbler

M... wrote: »

Hello,

I'm not yet at the stage of looking for a mortgage, but I am looking ahead and trying to make sure I prepare myself. I've never had a credit card in my life, though my partner has one and uses it occasionally. I'm worried that as I essentially have no credit rating, I won't be successful in getting a mortgage. Are there any wise folks who can clear this up for me? Is the one credit card used by my partner enough for us to get a mortgage?

Any help appreciated!

Credit rating doesn't exist. Lenders calculate it differently using the information they can get, including the credit histories from Credit Reference Agencies.
If you don't have any history of dealing with credit, then your rating is likely to be poor.

Many other things contribute to your credit history besides credit cards, e.g. loans, store cards, mobile phone contracts, some utilities contracts, some renting agreements.

• Credit Scores

Archi_Bald

grumbler wrote: »

Many other things contribute to your credit history besides credit cards, e.g. loans, store cards, mobile phone contracts, some utilities contracts, some renting agreements.

And current accounts.

OP, are you sure you are not recorded with the CRAs?

suse*

It comes down to a lot more than just if you have a credit card before or not.

How old are you? If you're 18 and not even had a phone contract and earn 16k it is going to be a lot harder than if you're 35 had phones and a car even and earn 40k.

If you go to the 3 main credit ref agencies and get copies of your report you could then talk to a whole market mortgage broker and go through your options. How big is your deposit as well as the bigger that is the better chance you probably have.

thebritishbloke

Make sure you're on the electoral roll too.

Having a credit card and paying it off in full every month will help improve your credit worthiness.

dealer_wins

Being on the voters roll, having a stable job, and saving regularly are the key things needed to get a mortgage.

As long as you are borrowing within normal limits, and have the required deposit saved up, you should be more likely to get a mortgage than someone who has had loans, cards, overdrafts etc