Hi All,

I'm hoping someone can help...

My girlfriend and myself are currently looking to purchase properties around the £170,000 mark. We have a joint annual income of £54,000, (which is way above the local average for 25 year olds) with no ongoing credit agreements (apart from a low credit card bill, mobile bills and insurances) and a deposit of £18,000.

However, I have a default registered against my credit record. I defaulted around 2 years ago on a HSBC credit card. I have fully settled the outstanding balance in February this year.

We recently have had a mortgage application rejected by Yorkshire bank. We are now looking for lenders that are sympathetic to defaults.

Does anyone know if any lenders can help?

Many Thanks for your time

Dave

Does your sons partner have a current account with an overdraft (that she should avoid using) if she only has a normal bank account, without credit, an upgrade here might be best.

A mobile phone on contract is a credit account also, as can be the new mobile broadband or any form of credit account.

She should apply for her credit record to see what exactly is low about it. It could be a number of things. (Electoral roll, linked addresses - not enough information etc)

She will also need to be careful about applying for a lot of credit as lenders are wary of this too.

If everything else is ok she could apply for a credit card? Paying off the balance every month is another good way to build your credit score.

I hope that helps.

Sparky.

Good evening Jayne,

I'm sure more experts will reply in more detail shortly. It sounds silly doesn't it! However if it's not to do with any debt problems in the past the lenders basically see you have no 'credit score' ie no way of measuring how you manage debt well such as regular payments -managable debt and in this current enviroment most think it's not a risk worth taking to lend.

However as they appear to see it , if you have some debt ie mortgage or credit card which you pay off regularly and correctly over time you build up a good credit history or 'score' hence their keeness to lend you money ie you are managing your debt well.

Still in this current enviroment lending criteria is getting stricter all around. One word of kindly advice do not consider firms that seem too willing to finance a loan or offer you that perfect deal be very wary.

Regards,

Paul

my son and partner went to the nottingham building society to get a 95% mortgage yesterday they were told that they would get it no problem they have seen the house they want so came away happy they were getting there first home. Today they had a call from the nottingham saying they couldnt give them the mortgage as his partners credit is low? shes never been it debt ie credit cards or loans , shes been told to get a credit card so she will be scored? it seems to me if you have no debt you have trouble getting a mortgage yet if you have debt its easy? can someone explain this ?