Mortgage application and credit ratings

Urban_chameleon

Hi,

I'm a Brit who's been living outside the UK for over 20 years. I want to move back to the UK and have (almost) no credit history. I'm gonna follow Martin's tips to get my credit rating up. My big question is: I heard that if I am turned down on a mortgage application that that will affect my credit rating. Is that true?

Seems unfair:(

Thanks a million!

Fruit_and_Nut_Case

If you make a request for credit, only the fact of the request is recorded, not the result.

thebritishbloke

Every time you apply for a credit product, whether that be a bank account, credit card, loan, mortgage, hire purchase etc, it's recorded on your credit report and that search record stays there for 12 months. It doesn't list whether you were accepted or declined, just the fact that someone searched your file.

Does that have an effect on other applications? Yes, for a few months. If you have 2-3 searches in a 6 month period, that's no real problem. Any more than that and lenders might be a bit more wary of lending to you.

Thrugelmir

Urban_chameleon wrote: »

I want to move back to the UK and have (almost) no credit history. I'm gonna follow Martin's tips to get my credit rating up. My big question is: I heard that if I am turned down on a mortgage application that that will affect my credit rating. Is that true?

Seems unfair:(

Thanks a million!

You have no credit rating. Lenders will assess whether your credit history meets their criteria.