Credit rating/ Mortgages

Susan.B

Hello all,

I am hoping someone here as some form of a clue..


I am looking to get onto the property ladder. I've worked out that I can easily afford up to about £600 a month to pay for a mortgage. Poss looking at a house around the 85K mark.



However, my credit ratings are pretty shocking. Before anyone comments, no, I've not been a complete idiot. There is 1 default on my history from 2016, this was fraud, and is marked as settled and there is a marker on my credit history explaining the fraud, with references etc. I've also got a marker against my report for fraud, because of this.



I have lived in Military accomadation for so many years, I don't pay any bills, I move house a lot, I paid for my car outright along with insurance etc. I've only had my mobile bill going out for the last 5 years or so. My credit rating has been so bad when I tried to get a credit card last year I was declined...for Vanquis!!!! After speaking to people about this, I've done a few things to improve my score and now have 2 credit cards which I utalise to about 25% each month. They both have £1000 limit.



Has anyone been successfully accepted for a mortgage with a "poor" credit score? I'm almost halfway in the poor band in Experian, and similar story on Callcredit / equifax. I will have 10k in savings by January, and will have access to the forces help to buy should I need to use it (roughy 11k).



Please, tell me there are some success stories? I hate that I'm suffering because I've not got myself into debt, and don't pay bills. It's totally ridiculous.

missypuff19

Speak to a mortgage broker. Get copies of your statutory credit reports from Equifax and Experian (can request this for free) to discuss with the broker.

Don't focus on your score, it doesn't mean much.

If your adverse credit consists of 1 settled default, over 3 years ago, then you're likely to be able to get a mortgage still.

missypuff19

And make sure you're on the electoral roll, if you move a lot!

scholesfan88

Have a good read through the mortgage section of the forum. Theres a few mortgage brokers on there that will often offer advise and some specialize in adverse.

What is your annual salary?

Have you done any affordability calculators? For the £600 on the mortgage, have you factored in all living costs associated with home ownership and what disposable income would be left?

If the only thing on your credit file is a 3 year old default (depending on the size of it) which is now settled then I'd be surprised if a good broker couldn't match you with a lender.

If anything I think affordability and the CIFAS marker would be the issues here potentially.