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By (user no longer on site) OP
over a year ago
|
just been to apply for our mortgage - wanting to borrow £63,000
was all going swimmingly did the budget planners and worked out we have approx £1100 left over each month. so thought brilliant
did the credit score search and we got declined  not declined because of missed payments. declined because we dont have any credit.
so because we're sensible with money and have no debts or outstanding credit we cant borrow ?? 
need to get over a 15% deposit now to be accepted. or in other words find £5000 in two weeks
time to dig deep 
feel completely gutted |
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By (user no longer on site)
over a year ago
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Speak to an independent financial adviser. You will find lenders that will view you as a good risk. Even more so if they are linked to the estate agent you are buying through - it's not always as clear cut as yes and no with a mortgage, so consider the maybes. |
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By (user no longer on site) OP
over a year ago
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thanks the worst thing we've always paid in full thinking having no debt is best
done some thinking and working out and pretty sure we can get the exta £5000 in time. but in turn will knock about £50 a month off the repayments |
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By (user no longer on site)
over a year ago
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It's one of those frustrating situations where although you are clearly financially sound a lender is unable to assess your ability to repay (this includes your inclination to pay on time too). I would suggest a small credit card used for fuel that you repay in full each month with no interest earned. |
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By (user no longer on site)
over a year ago
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If you have a mobile phone, a TV service, broadband etc you should be able to demonstrate a credit history, maybe speak to the citizens advice bureau or to an IFA. |
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By *bi HaiveMan
over a year ago
Forum Mod Cheeseville, Somerset |
Go to a different lender.
Many now rate affordability higher than credit 'score'.
There's a huge difference between a credit 'score' (a lenders calculation on you as a risk) and credit 'search' (which is simply a historical record of any borrowings and the relevant repayment history).
Your scenario sounds like the former - no history = no means to assess your likelihood or ability to repay.
There's a whole market of lenders out there - don't let one knock back put you off.
Good luck!
A |
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By (user no longer on site)
over a year ago
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Been talking to our son about the very same thing, apply for a credit card and use it to get on the credit ladder! Got to be done such a shame but that's the way of the world! |
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By (user no longer on site) OP
over a year ago
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"If you have a mobile phone, a TV service, broadband etc you should be able to demonstrate a credit history, maybe speak to the citizens advice bureau or to an IFA."
we have car finance but have done an experian report and its flagging as high risk because we've only had it a short time cant bloody win !!
gonna go back with the 15% and it'll get accepted
gonna have to put everything we've got into to so we dont lose the house - its a corker for the price really dont want to lose it |
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By *bi HaiveMan
over a year ago
Forum Mod Cheeseville, Somerset |
"If you have a mobile phone, a TV service, broadband etc you should be able to demonstrate a credit history, maybe speak to the citizens advice bureau or to an IFA.
we have car finance but have done an experian report and its flagging as high risk because we've only had it a short time cant bloody win !!
gonna go back with the 15% and it'll get accepted
gonna have to put everything we've got into to so we dont lose the house - its a corker for the price really dont want to lose it "
Car finance is credit - like any other form of borrowing.
The thing many fall down on is late payments on mobile contracts and broadband, as well as car insurance.
All of which are also forms of credit and affect any credit search!
Enjoy your new home - fingers crossed!
A |
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By *bi HaiveMan
over a year ago
Forum Mod Cheeseville, Somerset |
"Use a broker .. Not direct from a lender..."
Bad advice!
Most of the big lenders (with the best rates!) don't deal with brokers any more as it's a competitive market and any commission charge affects profitability.
Just research online and speak to a variety of lenders before committing. Most will be able to offer an AIP (agreement in principle) without affecting your credit record by recording multiple searches and leaving footprints which could affect decisions.
A |
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By (user no longer on site)
over a year ago
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"Go to a different lender.
Many now rate affordability higher than credit 'score'.
There's a huge difference between a credit 'score' (a lenders calculation on you as a risk) and credit 'search' (which is simply a historical record of any borrowings and the relevant repayment history).
Your scenario sounds like the former - no history = no means to assess your likelihood or ability to repay.
There's a whole market of lenders out there - don't let one knock back put you off.
Good luck!
A"
I'd agree with this and don't envy you at all!
We had a knock back from 'our bank' who we bank and have a mortgage with. . No missed payments like yourselves, and didn't want to borrow, just port our current mortgage. . But as we're self employed now, it opened up a minefield!
Another lender couldn't believe it and sorted there and then. .
Good luck!
D (f ) x |
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By (user no longer on site) OP
over a year ago
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"Actually something changes in April re mortgagee and its on a very large website that helps you save money.. Experts..
any loan app.leaves a footprint"
yeah we have been told applying at a few different places has a negative effect as it looks desperate for credit so to speak |
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I don't know if it's different down south, but I struggled to get a lender for my mortgage as I was using my research studentship as opposed to a 'regular' income. I was advised to go to the bank I've had a lifelong account with which I did & they lent me the money no problem. I do have a credit card with them but I've only used it about 3 times & not for a good number of years.
So yeah, go ask the bank who you've always been with. Sorry if you've already done this, just trying to help. |
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By (user no longer on site)
over a year ago
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"
declined because we dont have any credit.
"
Yup!
Me too!
I've been renting for almost 6 years now.
Never been in debt, never had credit for anything.
I can't get a mortgage point blank.
I have a pretty decent job too which is "moderately" well paying.
Although I've not applied for a mortgage now for nearly 2 years, it seems to me that nothing has changed from what you just said.
#boilsmypiss  |
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By (user no longer on site)
over a year ago
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It all comes down to traceability too...if you're difficult to trace on your history then creditors are wary. Credit cards are a good way to build history, but also make sure you are on the electoral register too...it's a simple thing many people overlook but it does help things along.
It is daft though...my sister could never get credit due to never having had any debt, yet I had a student loan, overdraft and 3 credit cards (so was clearly struggling!) and could get credit no problem because I always paid my minimum payments ontime. Good Luck! |
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Shocking isnt it..if you read /listen to Martin Lewis he says you should have a credit card and use it but pay off in full each month this will give u a credit score showing you can pay your bills and be reliable. seems stupid to encourage credit cards but always pay in full.
hope you manage to find the extra darn shame |
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By (user no longer on site)
over a year ago
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"seems stupid to encourage credit cards but always pay in full. "
I'm not going to get myself into debt (which I've never had) just to live in my own house wtf?...
I'd rather keep renting. |
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By (user no longer on site) OP
over a year ago
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"seems stupid to encourage credit cards but always pay in full.
I'm not going to get myself into debt (which I've never had) just to live in my own house wtf?...
I'd rather keep renting. "
totally disagree with credit cards - dont spend what you havent got.....
still its bitten me on the arse now  |
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By (user no longer on site)
over a year ago
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"seems stupid to encourage credit cards but always pay in full.
I'm not going to get myself into debt (which I've never had) just to live in my own house wtf?...
I'd rather keep renting. "
but if you have a mortgage you'll eventually own the house instead of paying off your landlords mortgage...  |
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By (user no longer on site)
over a year ago
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"just been to apply for our mortgage - wanting to borrow £63,000
was all going swimmingly did the budget planners and worked out we have approx £1100 left over each month. so thought brilliant
did the credit score search and we got declined not declined because of missed payments. declined because we dont have any credit.
so because we're sensible with money and have no debts or outstanding credit we cant borrow ??
need to get over a 15% deposit now to be accepted. or in other words find £5000 in two weeks
time to dig deep
feel completely gutted "
I feel for you as im the same.My bank manager hates me because I wont take out loans.I live frugally and within my means and its almost treated as a joke in these materialistic times.Good luck with finding your deposit and I hope you land the house of your dreams.x |
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By (user no longer on site)
over a year ago
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"seems stupid to encourage credit cards but always pay in full.
I'm not going to get myself into debt (which I've never had) just to live in my own house wtf?...
I'd rather keep renting.
but if you have a mortgage you'll eventually own the house instead of paying off your landlords mortgage... "
I'm fully aware of that CL.   |
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By (user no longer on site)
over a year ago
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"seems stupid to encourage credit cards but always pay in full.
I'm not going to get myself into debt (which I've never had) just to live in my own house wtf?...
I'd rather keep renting. "
You don't really have to 'get into debt' though...you can pay it off as soon as you spend the money on it. It's far from ideal, but it's to create a credit footprint for you so you can get your own home eventually |
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By (user no longer on site)
over a year ago
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"seems stupid to encourage credit cards but always pay in full.
I'm not going to get myself into debt (which I've never had) just to live in my own house wtf?...
I'd rather keep renting.
but if you have a mortgage you'll eventually own the house instead of paying off your landlords mortgage...
I'm fully aware of that CL. "
just checking GT  x |
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By (user no longer on site)
over a year ago
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Please don't just go with one credit report company there are 3 to use and all of them won't have the same info,also different places use different company's. A credit card is a good idea as long as it's paid in full but don't pay it before the statement comes in as Martin Lewis says if you pay too early ie before the statement it won't do anything on the credit your trying to build good luck |
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"seems stupid to encourage credit cards but always pay in full.
I'm not going to get myself into debt (which I've never had) just to live in my own house wtf?...
I'd rather keep renting.
totally disagree with credit cards - dont spend what you havent got.....
still its bitten me on the arse now "
*****************
You dont spend what you dont have at all .. you use a credit card to buy your monthly purchases and at the end of the month you pay it off in FULL.. you can even set up a direct debit to pay it off so u dont miss the date of payment.
Its not using it to get into debt at all.
If you dont have the Martin Lewis email coming through every week perhaps sign up for it.
I have never been in debt but have been using a CC for a few years because as a married women bringing up kids I never had a credit score. I had money but would never be able to borrow . I couldnt even get an ISME catalogue for gawds sake.
you have to learn to play the system. |
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By *bi HaiveMan
over a year ago
Forum Mod Cheeseville, Somerset |
"Actually something changes in April re mortgagee and its on a very large website that helps you save money.. Experts..
any loan app.leaves a footprint
yeah we have been told applying at a few different places has a negative effect as it looks desperate for credit so to speak"
Some companies will do a 'soft' credit search that will just check for bankruptcies and serious issues - won't leave the same footprint as a full application.
Ask whichever lender you are speaking to how they do initial checks - some do - some don't.
A |
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By (user no longer on site)
over a year ago
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That's right as I understand, people lending money like to see you have had debts and paid them off, I've also heard that its best not to clear your mortgage either as that means you won't be able to get a loan! Crazy world we live in 
But I am sorry to hear you are completely stuck, maybe consider getting a credit card and try again? |
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