First time buyer morgage

fordy84

Hi, I'm looking at applying for a morgage in around 6 months time, I could apply sooner or delay a couple of months depending on what's best for my situation. I'm self employed with a deposit of 50k  looking to buy a 170k house, my average earnings over the last two years is 27000k. I've checked my credit file and have a high credit score but I'm a little worried about my lack of credit history, I've only had one mobile phone contract which lasted 3 years and fully paid off, and my vehicle insurance which I've paid monthly for the last year and a half. I've never owned a credit card and always paid for most things with a debit card in full.

I was considering getting a credit card and using it to make small purchases, paying it of fully for the next 6 months. Would this make enough if difference to my credit history at this stage or should I just try my luck without ? 

lspell1

Hi Fordy,

You'll be fine to go for it now.

It's a myth that taking out a credit card and making 6 months or so worth of payments will improve your chances of being accepted for a Mortgage, in fact it's more likely to have an adverse affect than a positive one.
The history of payments on your mobile, having your current account on your credit file and making sure you are on the electoral roll should be sufficient to get a Mortgage with most lenders - especially with the level of deposit you have.

ACG

I sort of agree with the above. 
I dont think the credit card thing is a myth, but if you take out a credit card it probably takes about 6 months before your score will improve enough to overcome the actual credit check and provide any sort of meaningful extra points. It can help but only if you are a borderline application. 

With your deposit, I would say you should be fine to just crack on whenever you are ready. 

fordy84

Okay thank you for the advice. Very much appreciated.