Where am I going wrong?

Daisy84

I was on the electoral roll when I took out a credit card in 2013 but it was at my previous address. I was planning on using it to book a holiday and pay off monthly but decided to pay for it outright. I never used it and the 0% was running out so I closed it. On my credit file it comes up as a 'settled' account.
I think I'm going to have to wait for a year or 6 months before applying again to try to build up more of a history and also so I will be on the electoral roll longer at my current address. I'm just wary of taking out more credit and it having an adverse effect on the file again.

Candyapple

Daisy84 wrote: »

The negative reasons are being on the electoral roll for less than 3 years at my current address ( I will have lived at my current address for 3 years in October) and also 'credit card utilisation'. Even though I am still on the promotional rate and my current balance is well below the limit.
I do have one closed account from 2013 when I took out a credit card and never used it so I closed it. All electoral roll, mobile phone, finance etc is all the same on all credit reports.
I applied directly with the bank. Which I am now finding out is a big no no.
When the application was rejected, the mortgage advisor just said it could be because of the 'soft searches' on my account which I didn't think lenders could see. Also that said it could be because I went into my overdraft last November. They even commented that they couldn't understand why it hadn't gone through as the bank was offering me credit cards/ loans etc all the time.

Seriously? Please, please, please put in a complaint about this idiot, you don't know how many other people they may have caused problems with their mortgages before you and in future. That's like basic financial education 101. :mad:

What bank was this with?

I would even go as far as saying you should find a broker and make an application elsewhere. Who knows what the idiot bank adviser put down in your application. At least with a broker if you take copies of your credit file with you will be able to search the market and let's say worst case scenario you do get declined, they will be able to find out the reason why, or at least get the underwriters to look at your application if they think it shouldn't have been declined.

I'm thinking it's less about any issues with your credit files, and more about the bank you made the application with.

Daisy84

Am I best paying off my current credit card with my savings and then reapplying? I think I will go to mortgage broker and see what their take on things are. It's just annoying as my rent at the moment is higher than if I had a mortgage and im affording that just fine!

Thrugelmir

Daisy84 wrote: »

I currently pay £110 per week. However this will stop next month as my mother has retired and wants to take care of him as she wants to help me get our own home.
However this was taken into consideration when I applied for the mortgage.

The lender will also factor in the cost of supporting a child i.e. feeding, clothing etc.

Daisy84

Yes they did factor in the cost of my child. The annoying thing is the advisor agreed that I live within my means I have shown I can save while paying rent, childcare etc. They said affordability wasn't an issue it was the 'searches' which is frustrating and my actual score which I have now found out doesn't actually mean anything. But if it is the score am I best clearing my credit card and finance and having no debt at all oral I best to keep paying my car finance regularly and card regularly to show that I can keep up with payments?

Thrugelmir

Daisy84 wrote: »

The annoying thing is the advisor agreed that I live within my means I have shown I can save while paying rent, childcare etc. They said affordability wasn't an issue it was the 'searches' which is frustrating and my actual score which I have now found out doesn't actually mean anything. But if it is the score am I best clearing my credit card and finance and having no debt at all oral I best to keep paying my car finance regularly and card regularly to show that I can keep up with payments?

Advisors won't know the actual criteria for "scoring" an application. Not as black and white as it may seem. A considerable number of variables are factored into the equation.

thepod

Go to a decent mortgage broker

AnnMollys

To be honest, it’s very strange because you seem to be covering all point right? I am also guessing as some others did that you are making very minor mistake which to me looks more of not taking seriously than anything else and that’s not paying CC balance in full especially if it’s that low.