Letting credit reference agencies know I’m unemployed?

JayLou1

Our mortgage is coming up for renewal in a year. When I got it originally I was on a rather large income. I am now disabled with a long term illness, on full PIP and ESA. In that time my credit score has gone up, as I have less debts (car lease returned) and my spending is now minimal as I go nowhere.

My question is, should I let credit reference agencies know I am unemployed? My research says that employment status is irrelevant, isn’t taken into account for my credit score and credit reference agencies don’t need to know? However, two of the 3 main agencies have listed that I am employed and list my salary. I am worried that if it says I’m employed on my credit check and I’m telling my mortgage company I’m unemployed they’ll see it as suspicious. If its best to let them know I’m keen to do it now… 

Any thoughts please? 

TadleyBaggie

Don't bother, the credit score generated by the CRAs isn't seen by anyone else but yourself.

born_again

Why tell companies that have no need to know & receive data from the banks anyway.
You should be informing banks of the change though.

Little tip, if you stay with the same lender & just take out a new rate & fix period. You do not have to go through full income check.

fatbelly

Your own experience tells you that the credit scores you see have no relation to whether you can afford credit.

As long as your credit information is accurate,  and you can check that on a free statutory report, there is nothing for you to contact anyone about. Your employment status does not form part of that info.

Are you able to afford a mortgage on benefit-only income. I think that is what would be concerning me, and I would be having a good look at the SMI safety net

eskbanker

JayLou1 said:

Our mortgage is coming up for renewal in a year. When I got it originally I was on a rather large income. I am now disabled with a long term illness, on full PIP and ESA. In that time my credit score has gone up, as I have less debts (car lease returned) and my spending is now minimal as I go nowhere.

My question is, should I let credit reference agencies know I am unemployed? My research says that employment status is irrelevant, isn’t taken into account for my credit score and credit reference agencies don’t need to know? However, two of the 3 main agencies have listed that I am employed and list my salary. I am worried that if it says I’m employed on my credit check and I’m telling my mortgage company I’m unemployed they’ll see it as suspicious. If its best to let them know I’m keen to do it now… 

Any thoughts please? 

Are you saying that you did inform your current mortgage company of your change in employment status, or that you're anticipating mentioning this when applying for a new one?  If the latter, then it would be worth checking the Ts & Cs of your existing one, and the extent to which you're obliged to keep them advised of significant changes, but you're not under any such obligation to credit agencies....

Hoenir

JayLou1 said:

Our mortgage is coming up for renewal in a year.

Mortgages don't renew.  At the outset you enter into a contract to repay the money borrowed over a set term. During the term you have the opion to remain on the SVR or select another product that's offered to you. When an existing product comes to an end. Providing you renew online. There's no enquiries made into into your current circumstances. 

JayLou1

born_again said:

Why tell companies that have no need to know & receive data from the banks anyway.
You should be informing banks of the change though.

Little tip, if you stay with the same lender & just take out a new rate & fix period. You do not have to go through full income check.

Ooh really?! thank you. I’m with the Halifax and very happy with them, worth waiting then to see what they can offer, and what if any extra info they need to take out a new mortgage with them then… 

JayLou1

fatbelly said:

Your own experience tells you that the credit scores you see have no relation to whether you can afford credit.

As long as your credit information is accurate,  and you can check that on a free statutory report, there is nothing for you to contact anyone about. Your employment status does not form part of that info.

Are you able to afford a mortgage on benefit-only income. I think that is what would be concerning me, and I would be having a good look at the SMI safety net

Thank you. I’ve checked all the credit information and that’s all accurate, I’ve always tried to make sure it is. Part of the reason it goes against the grain to not tell them I’m unemployed lol. 

The mortgage is in my name only, but I am living with my long term partner. I was on such high wages and she’s older than me so it made the repayments more reasonable to get it on my own and I was lucky enough to be able to. So we pay half each and can afford the mortgage. Not heard of SMIs, will have a look just incase the govt decide to take away my benefits, thanks. 

JayLou1

Hoenir said:

JayLou1 said:

Our mortgage is coming up for renewal in a year.

Mortgages don't renew.  At the outset you enter into a contract to repay the money borrowed over a set term. During the term you have the opion to remain on the SVR or select another product that's offered to you. When an existing product comes to an end. Providing you renew online. There's no enquiries made into into your current circumstances. 

Aha! This is heartening news, thank you. We’re with a good provider. So do I wait until it’s closer to the end of our fixed term and then they’ll contact me with an offer of a new fix? 

I have no idea why mortgages and interest rates etc aren’t taught in schools!