Save To Buy Scheme ?

ST55

Hi all

We are looking at selling our property soon and have been to our Building society to look at Mortgages. We were given 2 options, one was to apply now, the other was to do the Save To Buy scheme (which would mean staying put for another 6 months. i am quite desperate to move now due to poor health brought on by noisy neighbors but the 6 month scheme may be better financially. My partners credit is very good where mine is just about fair last time i looked. If we can both get on the Mortgage we would be ok but if my couple of credit card late payments have gone against me we would have to look at something a lot smaller. One of my main concerns is would it be detrimental to my credit score if the Building society done a check now and then in 6 months. i would like to know sooner rather than later as it would change our plans one way or the other but would 6 months down the line make a major difference.

Bit new to this so please bear with

Thanks guys

kingstreet

You have no buyer for your home and no onward purchase, so how can you apply now? Are we talking about an agreement in principle?

Save to buy? But you already own a home. Won't the equity from that be your deposit?

You don't have a credit score, so don't worry about a couple of searches six months apart.

ST55

Yes sorry, its in Principle. The reason we were thinking of a save to buy was that we are not sure we would have enough equity from the house sale for a 10 % deposit.

I think my Credit Score is around 4-500 at present

kingstreet

Like I said, you don't have a credit score so if you're paying for that Experian or Equifax nonsense, knock it on the head.

It is the raw data from your credit file and application data which a lender uses to establish if you pass its credit score.

kingstreet

ST55 wrote: »

The reason we were thinking of a save to buy was that we are not sure we would have enough equity from the house sale for a 10 % deposit.

Nationwide? It lends 95% to existing borrowers without you having to use STB, which TBH I thought was for FTBs only...

ST55

kingstreet wrote: »

Like I said, you don't have a credit score so if you're paying for that Experian or Equifax nonsense, knock it on the head.

It is the raw data from your credit file and application data which a lender uses to establish if you pass its credit score.

What info would they take as my 'raw data'

kingstreet

Electoral roll data, address history, associations, aliases, public record data, account conduct data. Basically, it's everything visible on your statutory credit file.

Lenders do not get the made-up number you get from a CRA.

In fact, you don't even know if your lender takes data from that CRA and all three versions of your credit file can show different things.

ST55

kingstreet wrote: »

Nationwide? It lends 95% to existing borrowers without you having to use STB, which TBH I thought was for FTBs only...

Yes its with Nationwide, not sure what FTB'S are

As far as Raw Data, could the couple of late credit card payments go against me severly

kingstreet

First Time Buyers.

Late/missed payments certainly won't help, but it is the overall quality of your application which will determine if you are successful.

I'd say of they are in the last couple of years on a 95% application, you may be in trouble.

If more historic, say more than three years ago, you'll have a better chance.

ST55

Yeah they are this year, only 2 and ive had a couple of apple products that have had all payments up to date, only have 800 to pay on the card and a 400 overdraft but i think its good for the rest.

My partner already has a mortgage with the Nationwide and her credit is nice and shiny no lates etc and nothing outstanding ive heard that may balance any niggles with mine, is this true.

kingstreet

Possibly. An accurate answer requires much greater knowledge of your circumstances than I have.

If these missed payments are in the last year, I would not fancy your chances of 95% with Nationwide, especially if you are now saying you aren't an existing borrower.