Can’t get a mortgage.

kilasser

My girlfriend and I have been living together for Five years. Both nurses, I bring home £25,000 a year and she gets £22,000 a year. I had a defaulted mobile phone account for £400 five years ago when I was a student. Paid it off in 4 months. That is the only credit we have had between us no credit cards or loans. Paying off any thing or credit problems. But for the last Year and a half we have been trying to get a mortgage but no one will give us one. The more we try the more declines are being logged on our credit files. We pay £650 pounds on rent a month, never missed a payment during our time renting but sill no good. Any help or advice would be great. Will we ever be able to own our own home?

withabix

Obvious questions maybe:

Have you tried the bank(s) where you have your current accounts?

Are you on the electoral register?

Have you obtained your credit files from Experian and Equifax? Are any of the records out of date or incorrect?

It's unusual to be declined a mortgage, as that is secured on your property.

Are you trying to borrow too much?

Do you have any current outstanding debts?

jonesMUFCforever

Have to agree with above poster.
Check your credit files - only £2 each per credit agency. You may find that you have paid the mobile phone bill but they have not updated your file.
Also make sure that you are on electoral roll. Have you tried to apply for a credit card just to see if you get one? ( no need to use it if you don't agree with them)
Eric

kilasser

Got my credit file and the only thing on it is the mobile phone default and it says that the balance has been paid and the lender is satisfied. There is nothing on hers as she has never had any credit. I have applied for two credit cards in the last few months got them both no problem. We are both on the electoral register. We don’t have any debts as we never have had any loans. We have gone to our banks Barclays and Nat west both said no. All the lenders have worked out the amount to lend in accordance to our income. They have said that we can afford to pay it but they won’t give it to us due to the mobile default and that we do not have any history of paying back any loans. Thanks for the advice so far guys.

meanmachine_2

Hmm, that's odd.

Have you tried going to an independent broker? If they have a good relationship with lenders other than high street banks, they should be able to negotiate a mortgage, rather than just put your details into a database and then get the inevitable "computer says no".

You should be able to avoid sub prime lenders. It's just a case of getting a broker to negotiate for you, I would have thought.

Also, get your partner to apply for a credit card and then both of you use them (very carefully!) over a short period, then try reapplying. That might help with your credit score.

I'm no expert though - unlike others on here.

herbiesjp

That does indeed seem odd - a default from 5 years ago should not really be influencing a lender at this point.

Doozergirl

What mean machine said - you must find an Independent Financial Adviser! They will consider what you say and find you the best deal.

I too was naughty when I was a student - it has never been an issue and I am on my second mortgage with brand name lenders.

Find an IFA at https://www.unbiased.co.uk

I can't recommend one enough - they are a fountain of knowledge, we're always confident we've got the best deal available and mine even came to our wedding reception!

Louise1521

I got a mortgage from Northern Rock last year, with two defaults on my record.

BWZN93

Get a credit card, such as the capital one classic card, and use it for your food shopping, and pay back in full every month. You will begin to build up some good credit history. It is difficult to get credit these days if you have no history whatsoever. If you post on the credit cards board, someone else will be able to explain more fully - and recommend other cards if you are not happy with capital one cards! I know the Interest rate *29.9% apr is pretty hefty, but, if you pay it off in full, you pay interest! I think there is a lower Apr one from Barclaycard, not sure what its called though....

Jo xx

adyyoung2000

The good news is that the phone default won't show at all after six years, so if it is that that is stopping you, It won't be there in a year or so.

kilasser

Thanks for the advide guys. I got a capital one card and have started useing for things i would buy anyway eg food. Pay it off in full for a few months and then see where we stand. The mobile phone thing will be gone next year so hopefully that will help us if we havent got a mortage at at that stage.