Improving credit score for mortgage
Discussion
I'm looking to buy my first house (preferably) soon, but it seems my credit score is too low to get a mortgage with the main lenders (at 90% LTV). I've ran a credit report with equifax which says my credit score is good and there is nothing negative on there (i.e. no missed payments). There are no recent credit searches listed (although one was done today with a lender).
I've had a credit card for a few years which has always been paid in full and I took out a loan earlier this year to buy a car (having previously had a company car).
Is there anything else I can do (besides wait and continue to make on-time payments on the loan/card) to increase my score? The main option suggested online seems to be to get a credit card and make regular payments, but as I'm already doing that I'm at a bit of a loss!
If there isn't much else that can be done, does anyone know roughly what kind of time-frame I would have to wait to see a reasonable increase in the score?
I've had a credit card for a few years which has always been paid in full and I took out a loan earlier this year to buy a car (having previously had a company car).
Is there anything else I can do (besides wait and continue to make on-time payments on the loan/card) to increase my score? The main option suggested online seems to be to get a credit card and make regular payments, but as I'm already doing that I'm at a bit of a loss!
If there isn't much else that can be done, does anyone know roughly what kind of time-frame I would have to wait to see a reasonable increase in the score?
Based upon my recent experiences it seems like the mortgage providers have been forced to become very fickle about who they lend money to thanks to a new set of regulations from the FSA.
In your situation I would be looking for a good independent financial advisor (IFA) who knows the market well and can direct you to mortgage providers who will be most likely to agree a mortgage for you. The rate you get may not necessarily be the greatest compared to what you may see on MoneySuperMarket but once you've got a mortgage stick with it for whatever the tie-in period is (2-3 years normally) and then look a changing to someone who will offer you a better deal. See if someone can recommend you an IFA locally, they'll usually come to you to go through details.
Aside from that it sounds like you are doing the right thing with the credit card etc.
In your situation I would be looking for a good independent financial advisor (IFA) who knows the market well and can direct you to mortgage providers who will be most likely to agree a mortgage for you. The rate you get may not necessarily be the greatest compared to what you may see on MoneySuperMarket but once you've got a mortgage stick with it for whatever the tie-in period is (2-3 years normally) and then look a changing to someone who will offer you a better deal. See if someone can recommend you an IFA locally, they'll usually come to you to go through details.
Aside from that it sounds like you are doing the right thing with the credit card etc.
Sarnie said:
How do you know this?
One lenders saying no, doesn't mean they all will.................
I've seen a local mortgage broker, he tried Halifax first (as they leave a "soft" footprint on credit files) which was turned down, and he said in his experience Halifax tend to be the most lenient of the major lenders in terms of credit scores. He tried with another bank today who also said no and that they may consider at 85% LTV.One lenders saying no, doesn't mean they all will.................
Obviously I know this doesn't necessarily mean that every single major bank will turn me down, but without applying to them all, and ruining my credit rating in the process, I can only base it on those applications.
Do you have different experiences regarding which bank is best for lower credit score?
L4CON said:
I've seen a local mortgage broker, he tried Halifax first (as they leave a "soft" footprint on credit files) which was turned down, and he said in his experience Halifax tend to be the most lenient of the major lenders in terms of credit scores. He tried with another bank today who also said no and that they may consider at 85% LTV.
Obviously I know this doesn't necessarily mean that every single major bank will turn me down, but without applying to them all, and ruining my credit rating in the process, I can only base it on those applications.
Do you have different experiences regarding which bank is best for lower credit score?
Which other lender did they try?Obviously I know this doesn't necessarily mean that every single major bank will turn me down, but without applying to them all, and ruining my credit rating in the process, I can only base it on those applications.
Do you have different experiences regarding which bank is best for lower credit score?
blank said:
Are you sure it's credit score and not affordability?
Single salary at 90% LTV is likely to be a large salary multiple in lots of areas, even with a large salary!
Well that's what the Halifax/BOI told the broker. He also said that normally (with Halifax at least) if they have an issue with affordability they will offer a lower loan amount or a longer term, but they didn't.Single salary at 90% LTV is likely to be a large salary multiple in lots of areas, even with a large salary!
The amounts he applied for were based on the bank's intermediary calculators for affordability.
L4CON said:
I checked Equifax as I used the free trial with Experian a long time ago.
It's worth checking.I'm currently in the process of sorting out a PH'ers mortgage. First AIP was declined, no idea why. Turns out that Equifax had the format of his address wrong. Upon further investigation, they were linking all credit accounts to his previous address meaning that credit scoring his current address returned nil data which means an automatic decline. Applicant complains to Equifax, they tell him it'll be six weeks to up date his file. Checks Experian and that one is perfect. We've now had to target lenders who specifically use Experian for credit scoring rather than Equifax...............so, it's worth checking out that the information being held about you and provided to lenders is correct!
Sarnie said:
It's worth checking.
I'm currently in the process of sorting out a PH'ers mortgage. First AIP was declined, no idea why. Turns out that Equifax had the format of his address wrong. Upon further investigation, they were linking all credit accounts to his previous address meaning that credit scoring his current address returned nil data which means an automatic decline. Applicant complains to Equifax, they tell him it'll be six weeks to up date his file. Checks Experian and that one is perfect. We've now had to target lenders who specifically use Experian for credit scoring rather than Equifax...............so, it's worth checking out that the information being held about you and provided to lenders is correct!
Thanks Sarnie. I've done the Experian report and double checked Equifax and the address on both is correct.I'm currently in the process of sorting out a PH'ers mortgage. First AIP was declined, no idea why. Turns out that Equifax had the format of his address wrong. Upon further investigation, they were linking all credit accounts to his previous address meaning that credit scoring his current address returned nil data which means an automatic decline. Applicant complains to Equifax, they tell him it'll be six weeks to up date his file. Checks Experian and that one is perfect. We've now had to target lenders who specifically use Experian for credit scoring rather than Equifax...............so, it's worth checking out that the information being held about you and provided to lenders is correct!
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