How much difference does deposit make to rates ?

Angela_D_3

I don’t even know why but I have rubbish credit.  I’ve had a mortgage for 2 years.  Got a credit card for protection only which is cleared in full every month. I only want to borrow 3.5 times my salary and have a 20% deposit and keep being directed to the likes of Aldermore at 4.5% which I could manage but I don’t bloody want to.  

Would another 5% to take it to 25% deposit actually make that much difference does anyone know ?
 Thank you 

DD265

You need to look at your credit reports - the reason should be on one of them, and if it's incorrect, you can try to get it removed.
https://www.moneysavingexpert.com/loans/check-free-credit-report/
Are you going through a broker?
We found the difference between 5% and 10% to be quite significant two years ago, but I'm not sure it's comparable now.

AdrianC

If the issue is your credit history, then a lower LtV won't address that primary issue - remember, no lender WANTS to repossess. LtV merely gives them some breathing space to ensure you aren't in negative equity at a repo sale price, after costs...

Angela_D_3

DD265 said:

You need to look at your credit reports - the reason should be on one of them, and if it's incorrect, you can try to get it removed.
https://www.moneysavingexpert.com/loans/check-free-credit-report/
Are you going through a broker?
We found the difference between 5% and 10% to be quite significant two years ago, but I'm not sure it's comparable now.

I honestly can’t get my head around it,  I’ve been monitoring it for 3 years.  It never goes up. And there’s nothing on there.  

I got a mortgage with Santander with 10% and without any issue at all.  Admittedly the numbers are bigger this time 

Angela_D_3

AdrianC said:

If the issue is your credit history, then a lower LtV won't address that primary issue - remember, no lender WANTS to repossess. LtV merely gives them some breathing space to ensure you aren't in negative equity at a repo sale price, after costs...

The question is would a higher LTV reassure them 

[Deleted User]

Angela_D_3 said:

DD265 said:

You need to look at your credit reports - the reason should be on one of them, and if it's incorrect, you can try to get it removed.
https://www.moneysavingexpert.com/loans/check-free-credit-report/
Are you going through a broker?
We found the difference between 5% and 10% to be quite significant two years ago, but I'm not sure it's comparable now.

I honestly can’t get my head around it,  I’ve been monitoring it for 3 years.  It never goes up. And there’s nothing on there.  

I got a mortgage with Santander with 10% and without any issue at all.  Admittedly the numbers are bigger this time 

What never goes up? 

Who keeps directing you towards Aldmore? Have they said why Aldmore is a better fit for you than a lender with a lower interest rate? 

A larger deposit might open up more lenders to you but it really depends what’s on your credit files that mean you keep being recommended lenders like Aldmore. 

[Deleted User]

Angela_D_3 said:

DD265 said:

You need to look at your credit reports - the reason should be on one of them, and if it's incorrect, you can try to get it removed.
https://www.moneysavingexpert.com/loans/check-free-credit-report/
Are you going through a broker?
We found the difference between 5% and 10% to be quite significant two years ago, but I'm not sure it's comparable now.

I honestly can’t get my head around it,  I’ve been monitoring it for 3 years.  It never goes up. And there’s nothing on there.  

Credit files don't go up. They're not balloons.

They're a record of the last 6 years of your credit accounts and other details.

Check all three to see what appears. But if you're right in that there is 'nothing on there', then you have no history for lenders to go on. However, that's unlikely to be true if you already have a mortgage.

MFWannabe

Angela_D_3 said:

I don’t even know why but I have rubbish credit.  I’ve had a mortgage for 2 years.  Got a credit card for protection only which is cleared in full every month. I only want to borrow 3.5 times my salary and have a 20% deposit and keep being directed to the likes of Aldermore at 4.5% which I could manage but I don’t bloody want to.  

Would another 5% to take it to 25% deposit actually make that much difference does anyone know ?
 Thank you 

Who is your current mortgage with? Are they not offering any decent remortgage rates? Is it this mortgage that you are looking to remortgage? As you state you have 20% deposit? Or are you trying to get another mortgage? 
Who is directing you to Aldermore? 
You say you’ve been monitoring credit file for 3 years but do you have any bad credit history? Defaults, ccj’s, missed payments ever? 

Angela_D_3

The credit score does move up and down.  I used my card up to the limit once,  cleared it the next month and my score dropped by 200 points which wouldn’t be a problem if it wasn’t so low in the first place.
Anyway in case it’s helpful for anyone else easing in the future had a chat with London and County.  Top tips never use more than 50% of your credit limit that’s what seems to be holding me back even though it’s always cleared.  And yes the bigger the deposit the better the rate.  

MFWannabe

The credit score means absolutely nothing; lenders look at your credit usage and history 

[Deleted User]

Angela_D_3 said:

The credit score does move up and down.  I used my card up to the limit once,  cleared it the next month and my score dropped by 200 points which wouldn’t be a problem if it wasn’t so low in the first place.
Anyway in case it’s helpful for anyone else easing in the future had a chat with London and County.  Top tips never use more than 50% of your credit limit that’s what seems to be holding me back even though it’s always cleared.  And yes the bigger the deposit the better the rate.  

The credit score given to you by Experian etc is just a marketing gimmick. No lender sees it never mind uses it. You need to look beyond the number and into the files themselves. I can’t believe that going up to the credit limit on a card one time would preclude you from high street lenders leaving you with Ardmore.