Girlfriend weird credit rating problem! Address related ... applying for mortgage

guitaro

Hey guys,

My girlfriend and I are looking to get a mortgage for our first house.

We did the Barclay's Agreement in Principle online. I put that we wanted to borrow £180,000 and we had a deposit of £70,000. It came back saying it would only lend us £150,000. Not the end of the world but I thought it was strange as I assumed we'd get it as we both have decent jobs and my credit rating on clear score (whatever that's worth) is high. (Just did the Barclays one as it says on their site doesn't affect credit score).

My girlfriends credit rating was a bit of an unknown! She never pays attention to anything financially but also has never had a loan, credit card or store card. So whilst she's never really done anything positive for her credit rating, she's never done anything bad either. She just has a mobile phone, car insurance and pays rent on a flat. Always on time

This prompted us to check her credit score. Experian couldn't verify her, nor could clear score, they were asking her security questions about a mortgage in 2003 or something hah that she's never had.

I think I know what the problem is. She is currently living in a flat. She has put herself on the electoral role for address in the flat (but opted out of marketing). Her car and insurance are registered to her flat. However, her bank address is still registered as her mums house and so is her mobile phone. No actual reason, just didn't change it as she's always round at her mums anyway and probably being lazy. She's been in the flat for about 3 years. I know, she should of changed it but here we are!

I'm guessing that's the problem because she then tried 'noodle' credit score, put in her mums address and it found her no problem! Giving her some normal credit score (can't remember it now) but something 'good'. Had her mobile phone on it etc.

We haven't found a house we want yet but are just getting the ball rolling now. What's her best course of action? I just wanted to check with you gurus before she does anything!

I'd assume it's to change her bank address and her mobile phone address. Oh, and her student loan address too! (forgot about that). She doesn't have anything else I don't think.

If she does this and the credit scoring websites are still having trouble finding who she is, will a real mortgage advisor make sure they have the right person for mortgage applications etc?

Thanks guys, help much appreciated!

ACG

I think you are over thinking it.

It is probably more to do with the flat. Flat 1, ground floor flat etc, there are many different ways to display the flat and Royal mail may show it differently.

The 2 address may get picked up, but it is not uncommon for first time buyers to still have things at mum and dads, so an underwriter should not be too concerned by it.

It is unlikely that the credit report not picking her up properly would reduce the loan amount. This is why we say use the affordability calculators before doing a DIP.

AnotherJoe

She should change her address to the right one asap.
If a real mortgage advisor doesn't "make sure they have the right person for mortgage applications etc" then they arent much of a mortgage adviser !

kingstreet

By using this;-

https://www.royalmail.com/find-a-postcode

she can ensure she is using the correct address for where she lives. Simply enter the postcode and a drop-down list of possibles will appear.

She should then ensure all her accounts and correspondence has this correct address and she should change what remains showing her parents' address.

Consistency is important when applying for a mortgage and ID/POA, bank statements, payslips etc should always show the correct name and address.

pink_pirlie

I had addresses all over the place and had no problem getting the mortgage approved. I explained it during the application meeting and got asked once about it during underwriting (I applied directly to the BS).

guitaro

Hey guys, thanks so much for the replies.

Put my mind at ease for sure. Girlfriend will change over bank details to flat address on Monday anyway.

Sorry I should have said, we had done the online calculators and it looked like we'd be able to borrow £270,000. So even if that was an over estimate, I did expect it would like us borrow £180,000!

The barclays agreement in AIP is only a soft search .. they say this

'Unlike making a mortgage application, we don't run a full credit check on you for an Agreement in Principle. Instead we ask credit reference agencies to confirm whether certain details you enter on the AiP form match what they hold on your credit file. This is recorded on your credit file as a 'quotation search', which means it won't be considered by other lenders if you apply for credit somewhere else.'

I'm thinking there, if by putting the same details into experian and clear score, we couldn't find my girlfriend. Maybe Barclay's couldn't either if they're using the same service to obtain info?

Anyway, a sincere thank you for the responses! Will just move the addresses to be safe and then see a mortgage broker/advisor soon.

Thanks!
Rich