How to be a stable nomad

binaryuniverse

I'm wondering if the reason you didn't get a mortgage is because you didn't actually need it (by the sounds of it).

Even so, just going back to the start of the thread, the credit score is not something you need to be overly concerned about. At best it's a general indicator as to how well you've been managing your accounts. But Experian give me a low 450ish and I've recently been accepted for 2 credit cards (both Tesco), and opened 5 new bank accounts (albeit none of these with overdraft facilities, as I didn't want them. I've got an £800 OD on my main account, and I've used it once in the last 16 months since it was opened). Equifax and Callcredit also give me a low score.
I've moved house 8 times in 10 years. Which again, affects my 'score', and some lenders might get jitters about it. But I don't think that's a huge thing, these days. So many people aren't homeowners, and moving about is becoming a norm for a lot of people.

However, I do agree that things are left to automation far too readily, in this day and age. I remember popping in to my HSBC, in 2008, to apply for a loan. The guy has a look at my account, what I had coming and out, could see I could afford it, and approved me. If I did it online, I'd probably have been rejected for some nonsense little reason.

onthego

Thanks for the replies.
I have deleted a lot of personal info as things have moved on now.

phillw

onthego wrote: »

"The average length of your financial relationships is less than six years, this isn’t just bank accounts, mortgages, loans and credit cards, it can include utilities, mobile phone contracts, broadband and more"

I have that and I get a score of 999 and a hit rate of 98%. You will be seen as a higher risk because you don't own a house, it acts as collateral even for unsecured debt.

Have you spoken to a specialist mortgage broker? If you have evidence of an income and you are only borrowing a small amount of money then they can probably find something. It might not be very competitive and you will have to pay them a fee, but it's worth it to get past "computer says no". Some lenders have minimum lends for mortgages that are more than what you say you need to borrow, you may have to borrow more. A good adviser will know exactly what to do.

System

onthego wrote: »

An update - I phoned my bank to discuss and they said I need income to get a mortgage or loan and my zero hours contract won't count.

It seems so back to front that my bank who know me won't trust me, even though I was trying to get a loan where I'd pay them interest, but these other strangers want to give me free money for no interest!

First of all there's a difference between a few thousand quid of lending and £100,000 or more.

Its not necessarily that they won't trust you but that because of EU legislation they have to apply tests which you may not pass, particularly an affordability test which is based on a mortgage interest around 3-4% higher than the low rates being offered currently so just because you could afford one now doesn't mean that at say 6% you would be classed as being able to.

As for the zero hours contract, talk to a mortgage broker who will have access to mortgages more likely to accept you.

Hopefully with this credit card I can buy a house

Not happening. In fact it could harm your application if you try to use it to pay the deposit.

phillw

Tarambor wrote: »

Not happening. In fact it could harm your application if you try to use it to pay the deposit.

He says he's already completed. He doesn't need a deposit as he doesn't have a mortgage.

I've heard of people switching some of their mortgage onto credit cards, but never buying a house with cash & money transferred from a credit card. I'm kinda jealous. Although with mortgage rates so low it would need to be 0% with no transfer fee to be worthwhile for me.