Mortgage chance for newbie in UK

Rocksolid

Hi again, so basically they offered me 65% LTV, in the London zone is really not feasible...

With the help to buy, maybe yes, but it's really the last chance, I don't prefer this loan option...

So my question is: how can I improve a lot my score (to the lenders) in order to increase the LTV? Unfortunately I didn't get this info in mortgage advises online, specifically for this topic, obviously the general advises help for the LTV value but I think only on long term.

My goal is to buy the house before the end of the year, so from now on, I won't use anymore my credit cards, for my understanding is better if I don't use them, even if I've been using them just to increase my score till now, which currently is "good", in 3 months should be excellent if it continues in this way, but yeah, not so much credit history behind, it's worth little, and this is not the score the lenders use, a bit in the clouds this reasoning.

Furthermore, now that I've got credit cards, what's the best usage ignoring the mortgage?

Suppose that my credit score is at maximum (objective reached), should I use them? Will it make any difference? What if I don't use them for a long time? Should I use them once a year or so, I mean, how it works this story?

The credit history is made since the day you get your first credit, so even if I don't use the credit of credit cards, that will be part of the history as well, right? How is that seen on the long run?

What would you do?

csgohan4

so did you adviser advise about your credit score and that it means nothing to lenders? or you didn't use an adviser?

it is your income and debt that affects your LTV as well as the house price

A credit score does not improve LTV

Thrugelmir

Focus on saving a bigger deposit. That's something you can influence. While letting time give you more employment and credit history.

Rocksolid

csgohan4 said:

so did you adviser advise about your credit score and that it means nothing to lenders? or you didn't use an adviser?

it is your income and debt that affects your LTV as well as the house price

A credit score does not improve LTV

Not sure what you expect from the first question, but yes, the advise is to improve the score, that is obviously the one that I can't monitor, the lender one, mine through credit agencies is just an indicator, I didn't receive indications on how to improve it.

I applied when I had little credit history and also debt on the credit card, small mistake but actually they suggested me to try anyway because we would have know from where we start to work on the mortgage application.

My salary is not a problem, only my credit history.

Thrugelmir said:

Focus on saving a bigger deposit. That's something you can influence. While letting time give you more employment and credit history.

In the London zone, 500k good house, outside London 300k, not commutable zones 200k, do you know how much it is the 35%?

Yes, with the time I should get better deals, in the meantime, I wasted a lot of money on rent and also I can't estimate how much time is needed to improve the lender score... I don't see a solution to make some structured plan

Thrugelmir

Rocksolid said:

csgohan4 said:

so did you adviser advise about your credit score and that it means nothing to lenders? or you didn't use an adviser?

it is your income and debt that affects your LTV as well as the house price

A credit score does not improve LTV

Not sure what you expect from the first question, but yes, the advise is to improve the score, that is obviously the one that I can't monitor, the lender one, mine through credit agencies is just an indicator, I didn't receive indications on how to improve it.

I applied when I had little credit history and also debt on the credit card, small mistake but actually they suggested me to try anyway because we would have know from where we start to work on the mortgage application.

My salary is not a problem, only my credit history.

Thrugelmir said:

Focus on saving a bigger deposit. That's something you can influence. While letting time give you more employment and credit history.

In the London zone, 500k good house, outside London 300k, not commutable zones 200k, do you know how much it is the 35%?

Yes, with the time I should get better deals, in the meantime, I wasted a lot of money on rent and also I can't estimate how much time is needed to improve the lender score... I don't see a solution to make some plan

London has never been cheap. Every generation has had to make choices. 

[Deleted User]

Given the current pandemic and it's impact on the economy I don't think you'll do much better than 65% LTV.  A lot of lenders are now looking for a maximum LTV of 60%.

csgohan4

Rocksolid said:

csgohan4 said:

so did you adviser advise about your credit score and that it means nothing to lenders? or you didn't use an adviser?

it is your income and debt that affects your LTV as well as the house price

A credit score does not improve LTV

Not sure what you expect from the first question, but yes, the advise is to improve the score, that is obviously the one that I can't monitor, the lender one, mine through credit agencies is just an indicator, I didn't receive indications on how to improve it.

I applied when I had little credit history and also debt on the credit card, small mistake but actually they suggested me to try anyway because we would have know from where we start to work on the mortgage application.

My salary is not a problem, only my credit history.

Thrugelmir said:

Focus on saving a bigger deposit. That's something you can influence. While letting time give you more employment and credit history.

In the London zone, 500k good house, outside London 300k, not commutable zones 200k, do you know how much it is the 35%?

Yes, with the time I should get better deals, in the meantime, I wasted a lot of money on rent and also I can't estimate how much time is needed to improve the lender score... I don't see a solution to make some structured plan

So seems your adviser is misleading you by advising you to improve your score which the lender doesn't see. 

When you say the adviser suggested to try despite your limited credit history, they weren't recommended by the estate agent were they or London and Country?

In terms of London, as you know it is expensive. I have lived in London for more than 5 years, rented and didn't feel rent was wasted money, it put a roof over my head. 

in fact Living where you can't afford to buy is not money saving imo, so I moved out side London where I bought a nicer house for the price of a box room in London. 

I never expected it was a right to stay in London or expensive places.  I would love to, but I couldn't afford it so I moved and adapted. if you don't you will be forever renting.

As above keep getting a better deposit or higher income if you want to continue to be in London

In terms of a good history, pay off your credit cards in full every month and don't apply for credit/loans 3-6 months before mortgage. 

Rocksolid

csgohan4 said:

Rocksolid said:

csgohan4 said:

so did you adviser advise about your credit score and that it means nothing to lenders? or you didn't use an adviser?

it is your income and debt that affects your LTV as well as the house price

A credit score does not improve LTV

Not sure what you expect from the first question, but yes, the advise is to improve the score, that is obviously the one that I can't monitor, the lender one, mine through credit agencies is just an indicator, I didn't receive indications on how to improve it.

I applied when I had little credit history and also debt on the credit card, small mistake but actually they suggested me to try anyway because we would have know from where we start to work on the mortgage application.

My salary is not a problem, only my credit history.

Thrugelmir said:

Focus on saving a bigger deposit. That's something you can influence. While letting time give you more employment and credit history.

In the London zone, 500k good house, outside London 300k, not commutable zones 200k, do you know how much it is the 35%?

Yes, with the time I should get better deals, in the meantime, I wasted a lot of money on rent and also I can't estimate how much time is needed to improve the lender score... I don't see a solution to make some structured plan

So seems your adviser is misleading you by advising you to improve your score which the lender doesn't see. 

When you say the adviser suggested to try despite your limited credit history, they weren't recommended by the estate agent were they or London and Country?

In terms of London, as you know it is expensive. I have lived in London for more than 5 years, rented and didn't feel rent was wasted money, it put a roof over my head. 

in fact Living where you can't afford to buy is not money saving imo, so I moved out side London where I bought a nicer house for the price of a box room in London. 

I never expected it was a right to stay in London or expensive places.  I would love to, but I couldn't afford it so I moved and adapted. if you don't you will be forever renting.

As above keep getting a better deposit or higher income if you want to continue to be in London

In terms of a good history, pay off your credit cards in full every month and don't apply for credit/loans 3-6 months before mortgage. 

I would buy anyway outside London, but in commutable zones. Inside London, for 500k house you need to have at least 100k salary, but ideally should be 130k, not really the average eh .

The adviser was yes recommended by the estate, but I was gonna choose that anyway. I understand the implication between them, but I needed to know the LTV anyway to base some future plan, with this pandemic I need to wait no matter what.

Regarding the roof upon your head, yes, but in my case I don't like to be in house with other people, this is the way to save a lot of money in short time, so for me this is more than money wasted because I hate it.