Non horsey - credit checks.

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Berkeley

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Has anyone been refused a mortgage through having bad credit? I am wondering because I am about to apply for one and would like to know what the situation is with a poor credit rating. I have a feeling due to a high loan I got out to fund me through university and law school (not a standard student loan) that my debt is too 'high.'

Any thoughts? do mortgage companies go only by Experian reports? I will check on experian later but what a bit nervous of looking at the moment! Any comments on this would be greatly appreciated. Its my first time on the property ladder and don't want any nasty surprises.
 
They will take into account informaiton on Experian and Equifax. They will look at your incoe and expenditure adn want evidence of income as a minimum and take their decision based on afordability, loan to value, deposit and credit rating. Fingers crossed for you.
 
Have a look on experian definitely and quickly to put your mind at rest... but the mortgage people do look into the situation differently than if you were getting a loan, as otherwise no one would get a mortgage!!!

The main issue is though, with bad credit rating is when you DON'T pay items/loans/cards etc off on time.. Not the fact you have got them out at high value in the first place. As long as you have paid everything off by the due times, your credit rating wont be bad at all, but will be good.

Go to a mortgage broker though as they will look for the companies that will give you the best deal (natwest are very good though should you look directly) and one that will suit your personal situation, i.e the best mortgage to suit your needs and current financial situation as 9 times out of 10 there is a mortgage for everyone or at least one that anyone can get hold of to at least get their foot in the door.
Goodluck

and I bet your report is far better than you thought it was.x
 
Ditto sea-view.
However, you will also find that it is highly likely should you be accepted for your mortgage,that the APR you pay will be higher than someone with a "good" credit rating.Are you sure yours is bad?
Just having debt doesn't make you "bad" unless you repeatedly miss payments or make them late?
Good luck!
 
If you have been paying your loan then there will be no nasties! your credit history will show all credit payments (so loans, credit cards etc) with a rating showing if you are upto date with your payments - so lets say you paid month 1 on time, then month 2, late - this would show up and its this information that allows your vendors to assess you. You can very easily access your credit report by contacting experian/credit expert and paying a very small fee to have a copy of it (used to be a pound but I expect its a bit more than that). This is a much better way than waiting because it will show all your history and if there is anything wrong, you have an opportunity to have this removed or at least write an explanation that will appear on your report. Having a loan is a good thing though as if you are making regular payments, then you will find that this demonstrates you are a good payer. I actually had a problem in that when wanting a mortgage, I had limited credit info as I only had 1 card (then!) left and no loans - for some marvellous reason your BAD credit info stays on your record (ie CCJ's for 6 years) but a record of having paid a loan doesn't! I actually ended up going through my bank because they had full credit info and asked for a lot less info than other high street vendors although I did double check the rates etc. Once you have done this, and know you have a good record then you can look around for a good rate and you want to be with what is called a PRIME lender - ie high street. Better rates because you have a good credit record. If there is anything that looks tricky, then it could well be worth your while to go to a mortgage broker (ie John Charcoal) - who will charge you a fee but will then look at other mortgage options. Bear in mind though that these vendors will normally sell you a more expensive mortgage because you would be deemed to be a higher risk. Finally, if you do go to your bank, just remember, what ever they say, they are only offering you "their" mortgage so definately worth looking on the net as well. If you need more help pm me. I am not financial advisor but a: my brother is (master!) and b: have done this a few times!
 
They will look at your monthly debts and income and as said the credit check is to see if you have missed payments etc.

In reality if you havent paid a couple of cards etc it wont really make much of a mark. I think also doesnt it show if you have been applying lately and how many people have been checking you?

If you have bad credit, they can still in some circumstances offer a mortgage but at a premium rate
 
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