Residential status question

davidjay85
davidjay85 Posts: 11 Forumite
Combo Breaker First Anniversary
in Credit file & ratings
When applying for credit I am asked about residential status.
They will ask the address I am living and if I am renting or a home owner etc.

Now, I am renting where I currently live but I also own a property so am worried that if I tell them I am renting, will they think I telling lies as I have a mortgage?

Comments

  • happy_bunny_2
    happy_bunny_2 Posts: 4,488 Forumite
    I used to be in the same position. I used to say home owner, as it was never clear to me what to put. Never caused me any issues.

    They care that you might have some equity that they can have should you fail to pay, as far as I know.
    :beer:
  • BugsyBrowne
    BugsyBrowne Posts: 5,697 Forumite
    happy_bunny wrote: »
    I used to be in the same position. I used to say home owner, as it was never clear to me what to put. Never caused me any issues.

    They care that you might have some equity that they can have should you fail to pay, as far as I know.

    Equity? Credit is normally unsecured.
  • happy_bunny_2
    happy_bunny_2 Posts: 4,488 Forumite
    Yep. Maybe the wrong word :)

    I know its unsecured, but if you own a house, then they probably assume they can come after that if you fail to pay. Presuming you have some equity.

    Not sure what shows up in the valuations section on the credit report, nothing ever been in mine.
    :beer:
  • Tixy
    Tixy Posts: 31,455 Forumite
    Lenders tend to consider homeowners a lower risk. On average less likely to do a disappearing act with unpaid debt. And more likely to care about keeping a good credit history.

    And in addition, as happy-bunny says, should there be issue with the debt then there are more options for enforcing a debt against a homeowning debtor (such as a charging order or more chance of recovering through bankruptcy etc).
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
  • davidjay85
    davidjay85 Posts: 11 Forumite
    Combo Breaker First Anniversary
    Still not sure what to put though....

    If I say Homeowner, they might think I am not being truthful as my name and the address where I am living will not match up that I own it.

    If I say Renting they might also think that i am telling lies as I own a property
  • happy_bunny_2
    happy_bunny_2 Posts: 4,488 Forumite
    You might have to ask a creditor.

    Maybe the experian rep can offer his thoughts?
    :beer:
  • Tixy
    Tixy Posts: 31,455 Forumite
    I would put homeowner. They will see from a credit check that you do indeed have a mortgage and so own a home.

    But if you are unsure then you could always phone a particular lender to ask.
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
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