Can zero mortgage or rent payments prejudice a loan application?

london1973 Forumite Posts: 406
Seventh Anniversary 100 Posts Combo Breaker
as it says really, i wonder if this is a red-flag on loan applications which automatically mean a decline, largely because they think you are trying to pull a fast one?

My living arrangements are such that i don’t pay rent or mortgage, as i live with my wife and the house is in her name (and owned outright)… however there seldom seems an option for this when applying, and of course i need to put zero in the relevant box (surely i shouldn’t be pretending otherwise)

i many years ago applied for a loan which was automatically rejected due to a typo..the company explained this to me when i complained, and wouldn’t let me change the entry either..i.e they said it was a safeguarding mechanism for them-

i get 100% pre approved for various loans but on the 2 I’ve tried they were declined quite quickly, i understand they haven’t ‘hard-searched’ at the point of pre approval but still, in the past ‘pre-approval’ has always meant approval (this is at times i have been paying rent)…


  • CliveOfIndia
    CliveOfIndia Forumite Posts: 782
    500 Posts Name Dropper
    This shouldn't be a problem - after all, there are many people who are lucky enough to be in the position of "homeowner, owned outright".
    Check all 3 of your credit files to make sure all the data recorded there are accurate.
    Do you have much of a credit history (credit cards, other loans you've had in the past, utility accounts, etc.)?  Sometimes having a very thin file can be almost as bad as having a less-than-perfect history.  Or it could simply be down to affordability (amount of debt/proposed debt versus income).
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