shark_90 Posted May 1, 2008 Report Share Posted May 1, 2008 I've found a new house and I'm about to take the plunge. I've struggled to find a lender who will take the developer's 5% deposit as the sole deposit - but I have spoken to Halifax and they do it for new builds, so we're good to go. I've always struggled with a low credit score. It's been catch 22 for the most.. if I've wanted credit for something I have applied and got knocked back, applied somewhere else and got accepted etc. I've also made the mistake of asking for quotes for credit and letting them credit score me. Every search has an effect on my credit score and I've done a scoring on Credit Expert tonight and it's coming back at 332/1000 - or Very Poor. Whatever the reasons are make no difference, but it is important for me to say that I've never defaulted or ever had any CCJs or anything. I have missed a payment on two things in the last 4 years, one was a Littlewoods catalogue payment 4 years ago when I first moved into this house and one was a storecard about 3 years ago as my bank details were incorrect for the direct debit or something, and so obviously they didn't get their payment. I paid them both immediately when asked. The only thing I can think of that would cause me to have such a low score is the searches. I haven't done any searches for approx 3 months and haven't obtained any new credit in over a year. Infact, over the last 18 months I have cleared probably £7-8000 of debts off. I am basing all of this on a credit report from Credit Expert (Experian). I gather that most lenders use Experian for scoring etc. What I find even more interesting is that if I do a three-agency report from CheckMyFile, the Experian one comes back rubbish, but the Equifax and CallCredit ones come back sparkling, with really high scores showing that I am a low risk. After coming through hell and high water to make this house deal work, I am worried that I will fall at the final hurdle. Does anyone have any advice on how to approach the situation with Halifax? I am concerned that they will do a credit score on me and that I won't be seen as good enough and they'll just throw my application out on a "computer says no" kind of thing. :confused: Link to comment Share on other sites More sharing options...
Dave Posted May 1, 2008 Report Share Posted May 1, 2008 You're right, every time you apply for credit it is logged.. and if someone turns you down for whatever reason then that goes against you.. so the more applications and the more refusals, it hurts your score. The best way to go on would be to get some time under your belt where you didn't apply for much and didn't default on anything you currently have, which i see you have done. The only other way is to be honest with the company and upfront. Be prepared to show them bank statements and credit card bills if you really want the deal. Link to comment Share on other sites More sharing options...
Chav Posted May 1, 2008 Report Share Posted May 1, 2008 hiya, do you have lots of credit facilities still? eg mobile phone contract, multiple credit cards, store cards - better to have lots of facilities avail to you from a score approach. but worse if you default on everything obviously e.g. if you can be seen to borrow but pay back, then its good. they want to make money from ya! credit searches shouldnt go against you if you've not taken them all up - or unless you've literally got zillions of searches... Link to comment Share on other sites More sharing options...
Hopsta Posted May 1, 2008 Report Share Posted May 1, 2008 Shark, diff lenders will use diff credit agencies, by and large most decisions are done on scoring there is however a human element to it. When you go to apply take everything payslips, bank statements and all the credit reports that you have. You might also want to talk to Experian and see why they are scoring you so low compare to the other agencies, just because it's there doesn't mean it's correct. Things like financial associations could affect you aswell. It could be that the previous occupants at your current address had bad credit and thus it will black list the house. Link to comment Share on other sites More sharing options...
bazza_g Posted May 1, 2008 Report Share Posted May 1, 2008 It could be to do with the credit agency you're using - I had an issue some years back where I had a great credit rating with Equifax but Experian had no record of me at all!! It's been fixed now but only after I sent in a load of information to Experian. I'm not sure I trust these credit check outfits - I'm still battling to 'clear my name' as my old car finance agreement shows 2 months arrears before being settled - I never missed a payment in my life! Link to comment Share on other sites More sharing options...
gizze Posted May 1, 2008 Report Share Posted May 1, 2008 My credit score is great, but I always keep lots of cards open, so use them once a month and leave a couple of hundred quid on them but lots spare. So AMEX with a £25k limit, Natwest with £20k, Virgin with £25k and an overdraft facility of £10k but not going into the red. This really helps your score, so never cancel a card, stick it away and leave the credit available, but be careful take it too far and they will consider you a risk again. Also get a decent mortgage broker to work for you, he will get you the right deal and know what lenders to apply through and which ones will kick you back, he will get his money from the lender so it costs no more and may save you an absolute fortune. Link to comment Share on other sites More sharing options...
Booster Posted May 2, 2008 Report Share Posted May 2, 2008 We use Equifax and Experian for credit checks. Don't pay too much attention to the score that Credit Expert from Experian gives you. This is just their own internal scoring method and each lender will have their own that will be completely different from theirs. Its the same scheme that we have access to and IMO it is very hit and miss. I did a £7500 loan for a client last week and I couldn't fault her and yet Experian scored her at 450 (a pass for us is 800+). If you want me to have a look at your file for you pm me your details and I will do a search without leaving a footprint as we have the technology;) Link to comment Share on other sites More sharing options...
Mac Posted May 6, 2008 Report Share Posted May 6, 2008 That's very naughty Booster Experian's CreditExpert scoring is a bit of a joke to be honest, I range from 700 to 900+ from one end of the week to the other so I gave up on it :confused: It's pretty useful for tracking what's actually there though. As a side note I had an issue getting a mortgage last summer - a pretty minor one - but anyway, it turns out they'd used a different reference agency and they had no record of me at all beyond my electoral roll. Go figure that one. Took a fair while to get that sorted - I sorted my mortgage by asking them to use Experian which they were happy to do. By the way Shark, Halifax credit assess you at application and completion - if they've offered you the mortgage and there's been no massive change in circumstances between offer and completion you should be fine Link to comment Share on other sites More sharing options...
Booster Posted May 6, 2008 Report Share Posted May 6, 2008 That's very naughty Booster Not at all. As long is a search is done with consent from the person being searched there is no issue. I just do it as a non credit application and it is not visible to lenders only the person that the credit file relates to. It can also be requested by clients if they want a tailor made quote without leaving a footprint on their file. It really gets my goat that the big firms advertise their headline rates and then when people apply they say "sorry we can only offer you 11.9% instead of 8.9% because of......" they then put the frightners on the applicant by telling them that if they go elsewhere they won't get it beacuse of the search they have just done. The feckers are not giving out headline rates to people that are 100%. If applicants knew more about the system they would request a quote only search+++ Link to comment Share on other sites More sharing options...
Mac Posted May 6, 2008 Report Share Posted May 6, 2008 Indeedy, was only playing The non-stamp system is somewhat open to abuse though hey Link to comment Share on other sites More sharing options...
Booster Posted May 6, 2008 Report Share Posted May 6, 2008 Absolutely. There have been several mortgage brokers that have been caught out recently: Credit checking potential clients without consent and then cold calling them. The days of it numbered though as more and more people get paranoid about ID theft and either subscribe to a monitoring service or just get a copy of their file every now and then. Link to comment Share on other sites More sharing options...
hotdog Posted May 7, 2008 Report Share Posted May 7, 2008 Credit checking potential clients without consent and then cold calling them. Yeah, stop ringing me up :grin: Don't give up on it Shark, there's always a way! If you struggle in the high street banks, a good independant broker should be able to sort it. Link to comment Share on other sites More sharing options...
mb Posted May 8, 2008 Report Share Posted May 8, 2008 I know it sounds obvious but make sure you are on the electoral role, council tax etc. as they are huge minuses it seems when it comes to credit if you are not (I know as when I was between houses I dropped off the electoral role & had trouble taking out a store card) Link to comment Share on other sites More sharing options...
randellp Posted May 14, 2008 Report Share Posted May 14, 2008 Banks will fiund any excuse not to give you a mortgage at the moment. I've been an account holder at Nationwide for 18 years, with various ISAs, savings, shared account & current (Flex) account, yet they declined a mortgage renewal this month due to a "badly maintained Flexaccount". From what I can see it is because I've used my overdraft facility over the last couple of years. Link to comment Share on other sites More sharing options...
randellp Posted May 15, 2008 Report Share Posted May 15, 2008 I have just queried Nationwide on my above rejection. They won't enter into any correspondence on explaining my rejected application (I would like to fix it in order to prevent future issues). They will also not entertain any appeal, or process a re-application, for 6 months. This, apart from being very frustrating, is downright weird! Link to comment Share on other sites More sharing options...
cruiser647 Posted May 15, 2008 Report Share Posted May 15, 2008 I have just queried Nationwide on my above rejection. They won't enter into any correspondence on explaining my rejected application (I would like to fix it in order to prevent future issues). They will also not entertain any appeal, or process a re-application, for 6 months.This, apart from being very frustrating, is downright weird! It's a shame they have rejected you. If you have paid the mortgage without a problem before, then surely it's not a problem to continue it? Maybe you should move all your accounts to another provider. Tell them to stick their TV ads as they are wrong. When they ask why you are moving your ISA's etc, tell them the truth. Link to comment Share on other sites More sharing options...
randellp Posted May 15, 2008 Report Share Posted May 15, 2008 well - our current mortgage is with Halifax, and we want to move back to Nationwide. I am still tempted to pull everything out, but apart from this I'm very happy with the bank, and I suspect all they'll do is wave bye bye as I have to set everything up elswhere. The lady today did seem a bit "it doesn't work like that" from the advert, so I might at least get some mileage if I do some complaining! At least that might make me feel a bit better. Link to comment Share on other sites More sharing options...
_Tone_ Posted August 12, 2008 Report Share Posted August 12, 2008 Nationwide are a nightmare. We are moving our mort to them at the moment - because my gf is a contractor they are ripping her apart. If they knew what she had they wouldnt't think twice but because of all this crap around with the credit crunch lenders are being very picky. We do wish we had used our Broker! Ben I can recommend someone who got me a mortage when I was waist deep in poo so holler if you want his details. We have had 4 mortgages off him now and he will help you as he did with me. Take it easy fella, Tone Link to comment Share on other sites More sharing options...
Paul Posted August 13, 2008 Report Share Posted August 13, 2008 Having dealt with Halifax, on my new build , and initially a 5% deposit, watch out. Yes they would do it, but with a one off HLC (Higher Lending Charge). They wanted circa £1600 for their trouble. £1600 that could have otherwise gone to a bigger deposit, or furniture etc. Luckily i was in a position to tell them to sod off and upped my deposit to 10% Link to comment Share on other sites More sharing options...
_Tone_ Posted October 19, 2008 Report Share Posted October 19, 2008 Thought I'd lob an update on this - We ended up finding a new build house a bit further up north to where we are now - its a superb house - not finished (roof and 1st fix) but we haggled with the builder and got a good price along with stamp duty and few other things paid. We have our offer from Nationwide but the legal company they use are useless and closed our file! Anyway we went back to the broker - gave him some details and no joke within 9 days have an offer for the new house and it didnt rely on the old house being sold with Halifax. The missing chink in this is we have to put down a 25% deposit which she has and once we have sold our current house she'll get 95% back and I have to top it up. The thing from my point of view is that the broker we know (have used him for a few purchases over the years now) has delivered at the hardest time possible, and took all the pain away that we had with the likes of Nationwide. Now just have to sell our existing place - had a 2nd viewing on it yesterday so I'm hoping it all comes off!! Cheers Tone Link to comment Share on other sites More sharing options...
shark_90 Posted October 19, 2008 Author Report Share Posted October 19, 2008 Good to hear things are going well.. things are good for me too. As selling is hard work at the moment, I'm going to keep my current place and rent it out. Have you considered doing the same? Worthwhile in my opinion, as your house will go back up in value over the next 3-5 years and you can sell at a profit. As you've lived in it you are allowed to make £75k or so before you pay any CGT on it. My mortgage took a ridiculous 4 and a half weeks to go through after they put several obstacles in my way, but I will have an offer tomorrow or Tuesday and I will move in December. It's been a rocky road, but we're there! Link to comment Share on other sites More sharing options...
Tipex Posted October 19, 2008 Report Share Posted October 19, 2008 Dont forget, if renting your house out, you will need to re-mortgage on a buy-to-let mortgage. If you have any problems or want any advice give me a shout, my brother is an independant financial advisor and he will sort you out. I just re-mortgaged one of my rental properties and got a very good fixed rate despite the current financial climate. If you need any help, let me know. Link to comment Share on other sites More sharing options...
shark_90 Posted October 19, 2008 Author Report Share Posted October 19, 2008 Dont forget, if renting your house out, you will need to re-mortgage on a buy-to-let mortgage. [churchill]Oh no no no no no[/churchill[ Got a consent to let from my current lender and with both mortgages I'm just about hitting 4.5x salary so no need for BTL just yet. Probably will swap it to that eventually but I've been crdit searched enough over the last two months!! Link to comment Share on other sites More sharing options...
Mac Posted October 20, 2008 Report Share Posted October 20, 2008 That's a big misconception - most people seem to think that. Pretty much every BTL I have was bought on a normal mortgage, cos you get better rates. I then tell them I'm BTL and to date they've not cared a bit :D May be different now of course Link to comment Share on other sites More sharing options...
Mook Posted October 20, 2008 Report Share Posted October 20, 2008 If you have any problems or want any advice give me a shout, my brother is an independant financial advisor and he will sort you out. Your brother is an IFA and your brother in law is an estate agent...? Something fishy going on here. Reckon you're on a percentage... Link to comment Share on other sites More sharing options...
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