Open unsecured credit affecting Decision in Principle

Scottishrach

Hi,

I am currently looking for a 95% mortgage for less than £50k and am struggling to get a DIP. I currently have a lot of open unused unsecured credit just under £10k that I just haven't gotten around to closing. Could this be affecting the decision? Should I close some of these open accounts?

My credit rating is in the 850s

I have a small loan that is due to end next year and I wasn't intending to start looking until then but this property has a lot of potential and opportunities like this don't often come up in my area so I don't want to pass it up.

I can afford the mortgage the monthly payments and loan payments put together are less than I currently pay in rent.

kingstreet

What are you being told, affordability or credit score?

You need to ask those you are actually dealing with as we can only speculate as you've told us nothing about your income and outgoings.

Only one or two lenders are even remotely interested in available credit, so are you applying to Yorkshire Building Society or one of its group members?

Scottishrach

Thank you for responding.

I called one of them (Tesco Bank) and it seemed to be something in the soft search that was causing the problem but she wouldn't tell me what. I have check my file and everything looks fine.

A couple of my accounts are still down as being at my mum and dad's could that be it?

kingstreet

Why not obtain all three versions of your credit file so you can see the full picture, then talk to an independent mortgage broker?

Tesco is a cherry-picker. It is looking for the lowest-risk, most profitable business the same as the likes of HSBC. 95% mortgage at under £50k would be about the furthest from their preferred customer I can imagine.

I have no idea if your problem is to do with your address or where your credit is registered.