Mortgage With A Fair Credit Rating

Samfothers85

Hello all, so myself and my partner are nearly ready to buy our first property in the greater London area. We plan to start viewing properties around April/May. Unfortunately in my younger days I wasn’t the most responsible person with credit and made quite a few mistakes. That was 8 years ago and since then I haven’t had anything on credit, until we decided that we wanted to buy our own property. So 12 months ago I checked my credit rating, realized it needed some improvement, I settled the one outstanding account and since then I have two credit cards, (one being a credit builder) a catalogue account, and a contract phone. All of these are used regularly and paid off in full every month. My credit rating has improved but still shows as a ‘Fair’. We have applied for a couple of mortgage AIP’s and been offered the amount we require. When it comes to the final application of the mortgage will I have any issues with my poor credit in the past?

Many thanks

[Deleted User]

Your credit rating is just a made up gimmick. It doesn't have any bearing on your credit applications.

What are the issues on your credit files - and how old?

Pixie5740

Ignore the “fair” rating. It’s been generated by a company who don’t actually lend any money.

https://www.moneysavingexpert.com/loans/credit-rating-credit-score

Get hold of all 3 of your credit files (that’s files not scores) and go and see a mortgage broker.

You can access your files for free from MSE Credit Club (Experian), Clearscore (Equifax) and Call Credit ( Noddle).

Samfothers85

Thanks for your quick response, I am in complete control of all three credit cards and they are paid off in full every month. When I checked my credit file a year ago. There was an old outstanding Vodafone account dating back to 2012 l. That was paid off immediately and now shows as settled

ACG

You only need one AIP. If they are doing full credit checks, they could be doing more harm than good. If they are soft footprints then they are not really worth the paper they are printed on.

The good/fair/bad rating is worthless. If you have no negative markers on your credit report but limited credit history I suspect you will be fine. If there are any negative markers (late/missed payments)/pay day loans, it might be worth having a quick chat with a broker although as any negative markers you do have sound like they will be quite historic so probably not a deal breaker in themselves.