Help, I earn good money have savings but still cant get mortgauge

[dondonlondon]

Hi,

 

This is a cry for help! First of all, this is a great site wish I knew of it before!! Could have saved myself a fortune!

 

Right here is the thing, I am self a self employed contractor with 4 years accounts. Yr 1 - £20K yr 2 - £30k YR 3 - offshore earnings only! As diddnt pay tax cant be considered by underwriters even though i have wage slips and bank accounts!! YR 4 - £43k....

 

Now here is the BIG thing, my credit rating is :

 

Experian (700) Poor Equifax (312) Poor....

 

I defalted on some accoutns and missed payments galore 5 years ago!! Since then I havent had a bank charge, nearly immediately settled the defaults.

 

I now have a crappy credit card which i use and pay off in full BY DD at the end of every month - only to rebuild my score. The card and a phone have only been active for 6 months but always paid on time!

 

Due to the probelms I had before I have avoided credit like the plague, it now seems that's going to cost me!

 

I have the deposit, I have perfect personal bank accounts for 6 years..

 

I have savings and a disposable income of around £3000 a month....

 

WHY WILL THEY NOT GIVE ME A MORGAUGE???????

 

Sorry to go on?

 

My questions are :

 

1/ whats the best way of turbo charging your credit score, mates of mine say i should get a sofa on credit and pay it off, sound dtupid to me as i have a phone and credit card that is paid every month by DD...

 

2/ Whats the best way to get a mortgauge with this history IFA's are full of promisses and no delivery!!

 

My credit file :

 

Your Score: 312

 

This reflects that: You have a score of 312. Your score is predictive that you would be less likely to be granted credit. There are certain things present in your profile which many credit grantors find risky when considering whether to grant you credit. Most credit grantors would consider your score risky. You may find that you must pay higher rates of interest or provide security in order to obtain credit. While many factors other than your score influence the decision to grant credit, your score may be too low for credit grantors when deciding whether to automatically grant you credit and your application may be reviewed through other means than using a credit score. Review the Risk Signals below to identify areas that are negatively impacting your score. Find out more about automatic credit decisions .

Risk Signals

 

This is how you perform in each of the key areas considered when extending credit. Clicking on the linked terms or rating indicators will give you a brief description of each of the categories and more information related to your current status.

 

Rating Category

Rating

 

Credit Agreement

Danger

Electoral Roll

Warning

Searches

Satisfactory

Court Information

Satisfactory

• -Does not apply
  
• -Satisfactory
  
• -Warning
  
• -Danger

Back to TopCredit Agreement

 

document.write('About Credit Agreement'); About Credit Agreement

Equifax holds information from credit providers and other lenders, including details of existing and previous credit agreements and historical information about the repayment of these agreements. This information is one of the best ways for a lender to assess whether any future credit repayments are likely to be made on time. Lenders update and supply this information to Equifax on a monthly basis. You may find that not all the credit accounts you have with lenders are necessarily shown on your credit report. Some lenders only provide Equifax with credit accounts on their customers who have failed to pay their credit on time. The status of these accounts is normally 3 or more months in arrears. However, most lenders provide Equifax with information on all their customers accounts, irrespective of the status of the accounts.

Good

You have 5 active accounts and 1 settled accounts on file at your current address. Credit grantors prefer that you have at least one or two accounts as part of your credit profile. Active accounts are preferred to settled accounts.

Good

You have no active accounts and 2 settled accounts on file at your previous address(es). Credit grantors prefer that you have at least one or two accounts at your current address. Settled accounts at your previous address can improve your chances of getting credit if you have a limited credit profile.

Excellent

Your oldest account is 8 or more years old. Credit grantors prefer to see accounts opened at least 3 years.

Very poor

Your payment history shows that you have accounts shown to be defaulted. Credit grantors will view this negatively and you may have difficulty obtaining credit. Please review the section of your credit report entitled Credit Agreements to see your accounts. For more information about Insight data and what you might be able to do about it, click here .

This reflects accounts at your previous address(es).

This reflects accounts at other addresses.

Excellent

All payments on your accounts are up to date.

Excellent

Credit reference agencies are receiving periodic updates from your credit grantor(s) that reflect you have made payments on time in the past.

Excellent

You have no defaults.

Back to TopElectoral Roll

 

document.write('About Electoral Roll'); About Electoral Roll

The Electoral Roll is a list of everyone who is entitled to vote in elections, and their addresses. Your Local Authority updates this information every year using the details from the registration form you receive each autumn from your Electoral Registration Office. Each year we use a copy of the Electoral Roll to update our records. The address details on our database are sourced from the Post office and may differ slightly from the address details registered with your Local Authority. As part of your Credit File we will provide you with details of the Electoral Roll for each of the addresses you supplied to us, or previous addresses linked to you. Please be aware that new properties may not yet appear on our database and that Equifax holds a limited number of addresses for the Channel Islands.

Fair

You are presently shown as registered on the electoral roll but your registration at your current address is for two years or less. Credit grantors generally prefer at least 3 or 4 years of confirmed residency as this indicates stability. Please review the section of your credit report entitled Electoral Roll . For more information about Electoral Roll data, click here .

Back to TopSearches

 

document.write('About Searches'); About Searches

A search is the process Lenders undertake when they receive a credit application. A search enables Lenders to view information at your address/es in order to decide whether or not to grant credit.

Searches show Credit Lenders that you have made applications for Credit or Services. Credit Searches would not normally be viewed as adverse information. If however there were an unusually large number of Credit Searches, this may be interpreted by a Credit Lender as being indicative of over-commitment or maybe even fraud. Not all searches are for lending purposes. Other services you may received such as opening a current account may require a search of your Credit Report. These searches are also shown on your Credit Report and do no affect your ability to obtain credit.

Excellent

You have had 2 search(es) for credit in the last six months. Credit grantors view more than one or two searches within six months unfavourably. Please review the section of your credit report entitled Previous Searches . For more information about credit searches and what you can do about them, click here .

Searches at your current address: 2

Back to TopCourt Information

 

document.write('About Court Information'); About Court Information

Judgments/Decrees are issued as a result of county or high court action. If a Creditor/Plaintiff (the person looking to claim the money from you) is owed a sum of money by you they may raise an action against you in either the County or High Court, for recovery of these monies. If the court rules in favour of the Creditor/Plaintiff then a Judgment / Decree will be granted by the Court against the Individual (Defendant). The monetary value of this Judgment / Decree will be for the amount due and any associated costs. Equifax receives this information from Registry Trust Ltd. Registry Trust Ltd is a non-profit making company, contracted by the Lord Chancellor's department to maintain the statutory public Register of County Court Judgments and administration orders issued by the county courts in England and Wales. As well as also holding public Registers covering money Judgments/Decrees in Scotland, Isle of Man, Northern Ireland and Jersey, Registry Trust Ltd acts as a clearing house for Judgments registered in Eire. Details of all these Judgments/Decrees, and any subsequent amendments, are passed to the credit reference agencies for inclusion in their files.

Excellent

You have no information in your credit report that indicates a Court Judgment or other public record information such as a bankruptcy in your name. Credit grantors view this favourably.

[nuke em]

Unlike the USA, In th eUK there is no such thing as a "universal credit score " that all uk lenders work from. Every lenders scores applicants differently. Because of your past history you will be classed as sub prime, regardless of how much you earn now. Of more interest will be the LTV you need ie what % of the purchase price do you need to borrow?

[Penfold92]

Hi,

 

You say you are a self employed contractor with 4 years accounts. How have the accounts been done? Self assessment or via an accountant? The best and simplest way for you to get a mortgage would be self cert putting down 10% deposit, however due to adverse (and I do not quite understand what you have on your file) this could be a problem in the current climate.

 

I would suggest you speak to the bank you actually bank with as they will see your income via your bank account and they may be able to help that way...

 

Hope that helps a little,

 

Penfold

[Guest wino]

My credit score is bad. I had a business go bust and ended up with many CCJ's. I was still self employed last year in another business and applied to GMAC for a remortgage and was accepted. There are companies out there that will give you a mortage but at a cost. Watch out for the set up costs (arrangement fees) and the interest payable will be at a higher rate than a 'normal' mortgage. For what I pay out a month I could buy two houses if I had a good credit rating :o

[dondonlondon]

Unlike the USA, In th eUK there is no such thing as a "universal credit score " that all uk lenders work from. Every lenders scores applicants differently. Because of your past history you will be classed as sub prime, regardless of how much you earn now. Of more interest will be the LTV you need ie what % of the purchase price do you need to borrow?

 

95%, like everyine else. I can get hold of more but it would make life uncomforatable,

 

Also appart from 1 credit card paid every month, hoe can I boost my score?

 

Should i get something else on credit?

 

Dont really need anything, but interest free cant hurt? Any advice on who accepts higher risk people like myself?

 

Thanks

 

Don

[ananya]

Hi dondonlondon

 

Personally, I wouldn't get anything else on credit as this could count against you with some lenders, as will having too many credit searches done on your name.

 

There are plenty of lenders out there prepared to lend to people with bad credit, you just have to look for them and if you go direct, you cut out the huge arrangement fees that brokers can charge.

 

It said above on your file, if I read it right, that there was a 'warning' against your electoral roll information - this would be a big no-no for a lot of lenders if the information was incorrect.

 

Anyway, I hope this helps a little and good luck

[Bona]

We moved recently and allthough I am on he electoral roll it does not show on my credit file so my credits score droped dramatacly 6 years is the magic number give it a bit of time try to get a decent deposit and evenyully you will get there

[nuke em]

There are many companies who will accept you , however with a 5% deposit and an adverse credit rating you are likely going to pay 3-5% over base rate ie upto 10.25% int rate pa . Thats very expensive. You could try one the large London based Mortgage brokers such as John Charcol or London & Country and see what they say. I pick these not because i endorse them but because they are 2 of the largest brokers in the UK and should have access to the whole of market . you could also look in the "what mortgage" magazine for sub-prime lenders