Reply to: Mortgage Question

[Martin@AS Financial]

Quick question, had bad debts in the past but all sorted now, although it has left me with a bad credit score, asked the bank who holds my personal and business account for a mortgage and they said no, affordability was fine but failed the credit check.

Is it worth while trying to go to a contract mortgage specialist broker, or will it be futile as its my credit worthiness that has knocked me back rather than my position as a contractor.

Hi Simon

As Northernlad has suggested, the first thing to do is work on getting your credit repaired. Make sure you are on the electoral roll as this will have a major impact. The second thing to do is to demonstrate to lenders you are good with nominal sums of credit. Do this by doing your weekly food shop on the credit card and then clear the balance at the end of the month. The fact that you already have a mortgage is hugely positive as long as you have maintained the payments on time.

Essentially, having no credit is worse than having bad credit today. The last thing that you want to do is make lots of mortgage applications as banks are linked up by the Hunter System. This enables them to see previous applications with other banks and if they see a string of declines, they to will inevitably decline to lend as well.

[SimonMac]

See now you actually managed to fix it before I had a chance to take a pop at you, you SHOULD have just ignored it and I would have looked foolish, but by bringing attention to the fact you have shown you have the technical skills somewhere between Suity and Norrahe

[MarillionFan]

You been taking lessons from Norrahe on how to link an image?

[SimonMac]

You been taking lessons from Norrahe on how to link an image?

[MarillionFan]

[SimonMac]

Blah, Blah Blah etc

Blah, Blah Blah etc

Blah, Blah Blah etc

Blah, Blah Blah etc

[SimonMac]

Hi SiMac,

In the past I had debt problems, and was unable to get a mortgage through a traditional lender. This was despite all debts being cleared without resorting to an IVA or bankruptcy. In the end I went with Accord Mortgages (Associated with the Yorkshire Bank) and managed to get a fairly reasonable deal.

It could be worth registering with one of the credit agencies (I'm with Experian) to see when your rating will improve.

HTH

Same boat, no IVA, no bankruptcy and I am registered with https://www.checkmyfile.com/ (Checks all three of the main agencies) and can see things are getting better, it also showed me that signing up for insurance and paying monthly meant a credit agreement was taken out for me which set my score back

I do believe this is what OP is trying to do

Not moving, remortgaging

This is a bit of a guess but would be a homeowner (of anything) improve your credit score? If you could put up with living in a bit of a hole for a couple of years (assuming you could pay cash for it)?
Failing that - having a very large deposit may help. Have you tried Moneysavingexpert?

I am a homeowner, although its a joint mortgage which I am trying to get in my own name now.

First job is to fix your credit history. Going round everyone just to try and find one that will give you a ludicrous rate because of your history is going to be a matter of pure luck and also destroy the rest of your history with multiple searches and declines being registered.

Get them sent to you from the 2 major supplies and go through it with a tooth and comb. Also have a look at the moneysavingexpert type forums for other tips to fix it. Something as simple as not being on the electoral register can be the difference between getting your mortgage or not even with a nice shiny history. Get rid of unused credit cards as too much credit works against you oddly and so on.

If one bank failed you on credit check the next has more chance of failing you and so on until so many banks have refused credit no one will touch you.

I went with my bank as they do a pre check before the actual credit check, so no damage done for this "no" and am reluctant to go round bank to bank incase others do a full check straight away.

[MarillionFan]

Use a mortgage broker. Many of them can get you a mortgage offer without any checks, no credit checks and no income checks. Basically self-cert sub-prime liar loans. The mortgage industry thrives on this sort of thing.

Alternatively Dim and I can lend you the money. You'll need to put down 20% and give us the deeds, then we're happy to lend you the money at 150% per week.

Oh plus we'll need the kids as collateral as well.

[DimPrawn]

Use a mortgage broker. Many of them can get you a mortgage offer without any checks, no credit checks and no income checks. Basically self-cert sub-prime liar loans. The mortgage industry thrives on this sort of thing.

[MarillionFan]

But there is likely to be a clause with the mortgage saying that it must not be owner occupied and only let to tenants. Saying that I don't know how they find out or what the penalties are for being caught..

I've done it 3 times previously. I don't believe they care, there was never a stipulation about it.

[northernladuk]

Buy to let. It's done on the affordability of the rent. Then rent back to yourself. Simples.

But there is likely to be a clause with the mortgage saying that it must not be owner occupied and only let to tenants. Saying that I don't know how they find out or what the penalties are for being caught..

[northernladuk]

First job is to fix your credit history. Going round everyone just to try and find one that will give you a ludicrous rate because of your history is going to be a matter of pure luck and also destroy the rest of your history with multiple searches and declines being registered.

Get them sent to you from the 2 major supplies and go through it with a tooth and comb. Also have a look at the moneysavingexpert type forums for other tips to fix it. Something as simple as not being on the electoral register can be the difference between getting your mortgage or not even with a nice shiny history. Get rid of unused credit cards as too much credit works against you oddly and so on.

If one bank failed you on credit check the next has more chance of failing you and so on until so many banks have refused credit no one will touch you.

[MarillionFan]

Quick question, had bad debts in the past but all sorted now, although it has left me with a bad credit score, asked the bank who holds my personal and business account for a mortgage and they said no, affordability was fine but failed the credit check.

Is it worth while trying to go to a contract mortgage specialist broker, or will it be futile as its my credit worthiness that has knocked me back rather than my position as a contractor.

Buy to let. It's done on the affordability of the rent. Then rent back to yourself. Simples.

[Zippy]

This is a bit of a guess but would be a homeowner (of anything) improve your credit score? If you could put up with living in a bit of a hole for a couple of years (assuming you could pay cash for it)?
Failing that - having a very large deposit may help. Have you tried Moneysavingexpert?

[alreadypacked]

I do believe this is what OP is trying to do

My guess he is renting, move to a new area.