Has anyone got a mortgage with a poor credit rating?

(31 Posts)
DraenorQueen Sat 09-Apr-16 11:58:37

I've just checked my credit rating on Noddle and as I expected it's pretty poor, which I'm gutted about. I've had many addresses over the last 10 years and got into some real financial messes. I'm working my way out of it now though and living within my means on a decent salary (38k)

Do I stand any chance of getting a mortgage of £117k? I was offered one in principle last week of up to £160k but that was before I check my credit score. Also, a contact at Natwest said if there was anything "too horrendous" on my file, I'd have been rejected outright... I'm so confused. Can anyone shed any light?

Thanks

HeadDreamer Sat 09-Apr-16 12:03:46

I would go and see a mortgage broker in your circumstances. London and country works online so many give them a ping first?

I went direct but we have pretty good credit rating.

HarlettOScara Sat 09-Apr-16 12:06:09

Lenders won't look at your credit rating as such but they will take into consideration your reliability in paying your bills. So if you have missed/late payments on file and/or CCJs then you are unlikely to be accepted for a mortgage by most lenders.

However, you may be best to speak to a mortgage broker as there are some companies out there who will lend to people with poor credit profiles. You will likely pay more though as you are considered a riskier customer.

DraenorQueen Sat 09-Apr-16 12:06:25

Thanks for the tip, much appreciated!

bearbehind Sat 09-Apr-16 12:17:12

It depends what is on your file that is making your score poor. Have you got any defaults/ CCJ's/ late payments?

As above, the 'score' means nothing to the lender, they're just interested in your financial history, ie the actual data on your file.

I believe the initial search with Nat West is only a soft search so there's a very strong chance if there's lots of issues on your file the subsequent hard check could lead to a decline.

Ifailed Sun 10-Apr-16 06:57:17

Lenders will also want to look at your spending habits - if you earn, say, £1k a month and regularly spend £1k that looks to them like you will struggle with a mortgage, especially if rates go up. Monthly saving is good, as is consistent spending, (obviously spikes for holidays / xmas are expected) month on month.

DraenorQueen Sun 10-Apr-16 09:07:17

Thanks again for the comments. Ifailed that's quite scary. I spend quite a lot each month (single, childless, like getting out and about) but I've never once failed to pay rent, car loan, phone, loan repayments, etc.
Also, the mortgage repayments for this house would actually be about £80 lower than me rent! Hoping this will go in my favour...

Ifailed Sun 10-Apr-16 09:22:00

DQ, you might find this useful: www.thisismoney.co.uk/money/mortgageshome/article-2613076/What-homebuyers-pass-stricter-mortgage-tests.html

Ifailed Sun 10-Apr-16 09:26:57

Oh, and Noddle do a free credit check thing, you get an email every month with the latest value: www.noddle.co.uk/

pastaofplenty Sun 10-Apr-16 09:42:06

I'd look on Experian to be honest - as this is what lenders are more likely to look at. I've been on both and Experian has been far better and accurate whereas Noodle seem to be very odd in their evaluation. I think they say it's poor so that you then subscribe to "find out more" - it's a marketing ploy.

HildurOdegard Sun 10-Apr-16 10:20:05

Draenor - don't forget that 80 "savings" will not be saved at all. Maintaining a home is not cheap. sad a stroll around b&q will tell you that.

Mummyme87 Sun 10-Apr-16 16:18:25

I have a poor to fair credit score due to some late payments which step roll off my account in next 12months.
My OH has a mortgage and good credit history. We have a mortgage in principle through a mortgage broker with a building society who are happy to take on people like myself.

DraenorQueen Sun 10-Apr-16 16:53:23

Thank you everyone. I feel really down about my prospects of being accepted but am going to book in for an appointment tomorrow. I'm just praying that they might see that with 10% deposit and the subsequent very low monthly repayments combined with a decent salary I can easily afford this. But I can accept that mistakes made in my 20's might prevent this from happening.

Cheers again all.

smellylittleorange Sun 10-Apr-16 17:01:22

Moneysavingexpert has lots of great advice regarding this..but yes get a broker ..don't go direct to a bank.

DraenorQueen Sun 10-Apr-16 17:10:34

Can I clarify, is a broker totally independent? I have an appointment with the mortgage adviser based with the agent this week but really was planning on going with my bank if they would accept me....I assumed that having been a customer for 15 years they'd "know" more about my income, etc.

bearbehind Sun 10-Apr-16 17:27:12

OP, have a read on the MSE forums but the general advice is to steer well clear of EA based brokers.

They are very often not independant or whole of market ie they try and place your case with the lender that would potentially earn them the most money rather than the one that fits your circumstances the best.

Also, there's very little loyalty with banks and long term customers. If your profile doesn't fit their lending criteria the computer will say no regardless of how long you've been with them.

You need an independant, whole of market broker. Depending on the extent of your poor credit history, you may need an adverse credit specialist.

bearbehind Sun 10-Apr-16 18:04:56

What is showing on your credit file? Do you have CCJ's, defaults or late payments?

DraenorQueen Sun 10-Apr-16 18:11:18

Hi bear I can;t actually see specifically what it was - I think you had to pay for that information. I've taken your advice and reposted on MSE. Late payments on utilities certainly. Never missed payments on rent, phone, loan or car finance.

bearbehind Sun 10-Apr-16 18:17:57

Not all utility companies report to credit reference agencies so it's fairly unlikely to to that.

Have you ever done the free Experian trial? If not, try it or you can request a copy of your credit report for a few pounds.

Any broker worth his/her salt will ask for this information anyway. If they don't- run a mile.

You really need to know exactly what is on your file in order to know what your next move will be. Without this information any broker is just stabbing in the dark too.

SickRose Sun 10-Apr-16 18:27:17

Our mortgage was for around 180k. DH had a poor credit rating and I didn't really have one as I was only 22. We went through a mortgage advisor and we were turned down by a few places but accepted by Halifax. Quite a few people I know that we're like me have been accepted by Halifax.

SickRose Sun 10-Apr-16 18:30:12

Oh and definitely get the experian credit expert free trial. They give great advice on how to improve your score and will also tell you the likelihood of getting accepted for loans, credit cards and mortgages. Most companies use your experian score too.

Family000 Tue 12-Apr-16 17:39:07

Talk Property/DIY
Mortgage approved subject to....13
Yesterday 17:38 NakedMum33and3rd

Our mortgage has been approved subject to assessment of documents and valuation. Is this normal? Last time we were offered our mortgage they just offered it?
Is this just new wording on mortgage offers? Want to know if I can get excited or not!

Yesterday 17:41 LIZS

Presumably it is based on a specific loan to value.

Yesterday 17:46 lalalonglegs

I suppose it depends when you last got a mortgage - certainly everything about the process seems more tortuous these days. Pre-2008, there were occasional cases of mortgage fraud in which banks loaned money against properties that didn't actually exist so I suppose now they want to check LR documents. There have also been many, many cases of ID fraud in which someone remortgages a mortgage-free property that has nothing to do with them so, again, the banks want to do extra checks for this as well.

Yesterday 17:55 NakedMum33and3rd

We remortgaged last April. Last proper mortgage application was six years ago. I am hoping that it means that they will offer us the mortgage as long as everything checks out ok!

Yesterday 18:28 bilbodog

Sounds like you have been offered a 'mortgage in principal' and once you find the property you want to buy it will need to be valued by a surveyor before you receive your formal mortgage offer which enables you to complete the purchase.

Yesterday 18:31 NakedMum33and3rd

We have found the property and all applications have been about the property we are buying. They have all details and solicitors have been instructed.

Yesterday 19:13 Ragusa

It is standard for mortgages to be contingent on documentation and valuation, yes.

I don't quite understand your second post ... it's usual for mortgage applications to take a few weeks. Agreement in principal is not quite what the name implies - rather, it's a possible yes - but is not a formal mortgage offer or agreement to provide funds.

Yesterday 21:51 scribblegirl

Yep, sounds like an AIP to me rather than a formal mortgage offer?

Yesterday 21:52 Family000

We are first time buyers aged 34 and 36. Currently renting so in a position to move asap. We had a morgage in principle from hsbc last week for 180.000. Also have 20.000 deposit which is a gift from parent. We have no debts and no loans. Combined income of 41.000 a year and I can do an extra 2 hrs a day at work if I want. My work are allowing me to do as many extra hours as I like as I'm currently working 25hrs a week. Thought this would come in handy if interest rates increase. Do you think this is too much to borrow . Worried now that when we put full application in it'll give us less than needed as houses in our area in this price range don't come up that often. Also have savings of 9.000 for fees etc. Any other advice is greatly received.

Yesterday 21:55 StepAwayFromTheThesaurus

It sounds like they've said they're willing to lend you that amount of money as a mortgage (i.e. They're happy you can pay them back), but that the actual offer is contingent on the house being real (hence documents) and the survey valuation being acceptable to them. So it's a not rejection but we need to keep going with the process decision.

Yesterday 22:04 Family000

So I suppose once a property has been found in our budget ( looking for under this ) then put in a full morgage application. I've heard hsbc are pretty strict so I'm really surprised we've got this far smile

Yesterday 22:07 Family000

Only issue I can see is a few later payments to bt back in 2011. Do you think it'll be picked up on .

Yesterday 22:12 StepAwayFromTheThesaurus

I have no idea family. Have you tried the online affordability calculators? They might help you get an idea about affordability.


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DraenorQueen Thu 14-Apr-16 17:26:56

Just returning to this thread to say thanks again for all the comments and also to to you that today I was APPROVED for my mortgage!!!! grin
The mortgage chap said a noddle credit report worthless as they get it totally wrong and he got me to sign up to experian on the spot. I sat there waiting for it to come back, absolutly shitting myself. My score from Noddle was 540 and I was rated 1/5 - the worst rating. Bloody experian came back 8 60-something! On the cusp of fair and good!
Did an application with Halifax and was approved. Am going to try another lender with a better deal on Saturday but if I get knocked back for that, I still have the Halifax offer secure.

Very happy!

Ifailed Thu 14-Apr-16 17:37:12

DraenorQueen
flowers

DraenorQueen Thu 14-Apr-16 17:41:55

Thanks for your comments in particular, Ifailed x

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