Never had credit advice on getting mortgage

Kb89111

Hi I've never had credit and I want to get a mortgage but have been told I need to build up a credit history before I will be accepted for a mortgage. I am 18 and have just been registered on the voters role. How long will it take for me to build up a sufficient history to be accepted. I've just taken out a credit card to help me improve my score is there anything else I can do ?

[Deleted User]

You'll probably want a few years history, though a massive deposit can also help.

Make sure you use the card regularly and pay in full each month.

Thrugelmir

Open a Help to Buy ISA.

Kb89111

I've got a 10% deposit do you think there's much chance of getting a mortgage in 6 months ?

[Deleted User]

I'd say definitely not. You need a good history of solid credit management for mortgages these days. You've done well to get a credit card.

But engage a mortgage broker for a more informed steer on your options.

rtho782

My old bank account was REALLY old and didn't have an overdraft, and did not show up on CRA reports. I had NO other credit, PAYG mobile, etc.

I switched to Nationwide about 2 years ago, this was on my report from day 1. I eventually got a £500 overdraft with them, but rarely use it. I opened a joint account with my partner about a year ago, she has a good credit rating so we had initially an £1100 overdraft, it's now £4000, we used it at first when we moved house, now never use it.

In december 2015 I got a Nationwide credit card, then with a £1500 limit, I used it and paid it off in full every month, the limit went up to £2250 last month, it's now paid off in full and dormant.

We applied for a mortgage in March 2016 with a 5% deposit and have a mortgage offer, about to proceed to exchange of contracts.

So you don't need a massive history, my credit report has only my two bank accounts, my credit card, and my British Gas account on it, all under 2 years old. Perhaps it helps that my partner has a good credit rating.

SLZ

Kb89111 wrote: »

I've got a 10% deposit do you think there's much chance of getting a mortgage in 6 months ?

10% and 6 months on file? Not a chance, with whomever you bank with get a basic credit card and put expenses on it and pay that off in full each month, ensure that any contract mobile, TV etc are also paid in full each month and try for a 20% deposit within 1 to 2 years you can ask your bank whether there's an option for a mortgage depending on deposit, salary and credit history.

Also open a Help to Buy ISA.

solentsusie

Kb89111 wrote: »

I've got a 10% deposit do you think there's much chance of getting a mortgage in 6 months ?

I would suggest going to a good mortgage broker who will be able to assess your own personal circumstance and will search the whole market for you for suitable products.

In the meantime keep all of your payments up to date and keep saving for that deposit. The higher deposit you have the more likely you are to get an acceptance.

Good luck.