Credit Rating - How do i improve it?

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

    Credit Rating - How do i improve it?

    I was recently rejected a mortgage due to an adverse credit rating
    I missed a mortgage payment by accident a few months ago
    My broker told me i can't take out a new mortgage for 12 months

    What's the best way to improve ones credit rating?



    #2
    Reduce your level of overall debt.

    Have credit, but make sure you pay *everything* on time.

    Don’t ever consider using payday lenders.

    Wait for time to pass, it won’t happen overnight.

    Comment


      #3
      Originally posted by VictoriaH View Post

      What's the best way to improve ones credit rating?

      Make sure you pay your debts on time, all the time.

      Comment


        #4
        Offer payment by monthly standing order from your bank's rental income account.

        Comment


          #5
          One missed mortgage payment is not a hanging offence but does indicate a question over one’s reliability. 12 months seems somewhat harsh but taking account of your other post such applications need to be accompanied by a corresponding amount of supporting information which might explain why a Standing Order might have been rejected , and whilst it is obvious that there was insufficient cleared funds to cover the payment, there might have been mitigating factors. Get your broker to look at your Credit Insight and the last 6 months and then establish if there is any flexibility from a lending point of view.

          Comment


            #6
            That one payment missed can last 6 years ,You might want to write to the original lender to ask if they can remove the mark off your credit file ,It is worth trying that first .

            Comment


              #7
              Regrettably that would not be possible, data collection necessitates that if a payment is even 1 day late there is a ( 1 ) inserted in the credit profile , it is one of the reasons why Credit Card payments be setup by a Direct Debit arrangement and not putting the onus on the borrower to ensure the payment is made just in time. The fact that the mortgage lender wasn’t able to collect the mortgage payment is because on the date the DD request was made there was insufficient funds to enable the payment to be made. If indeed there had been adequate funds available then the poster would by now have demanded a correction to the missed payment.

              Comment


                #8
                You are wrong . i had severn trent remove late payments on my credit files ,and with just a little bit of b.s .It is possible .And to be fair lenders would try to increase interest to such lenders .So i would try before contacting high interest lenders .

                Comment


                  #9
                  When I read the letters B S I take it that the facts as presented to the Water Board were exaggerated to the water board. Not impressed in the slightest.

                  Comment


                    #10
                    It does not matter if you were impressed or not .The credit agencies were supposedly (Yeah right ) set up to suit lenders and buyers .Sadly lenders use them to reep higher interest from borrowers with minor marks against them .A woeful practice ,Especially as it can last for six years !!! Obviously you are a loan arranger and are more interested in arranging higher interst rates to borrowers in this possition.A very lucrative con IMO .
                    enjoy your day .

                    p.s O.P do try them first ...Obviously not just a bank teller .

                    Comment


                      #11
                      LA is one of, if not the most, helpful poster on these boards offering free and wide ranging advice that has no doubt saved many posters a lot of time and money. To suggest otherwise because he called you out for using bovine faeces to change your credit rating is out of order.

                      Comment


                        #12
                        Originally posted by Lingy View Post
                        The credit agencies were supposedly (Yeah right ) set up to suit lenders and buyers .
                        Back in 1981 I did a graduate trainee course and spent a day learning about the credit rating part of the business. It was set up solely to help us decide whether to accept applicants as customers without putting them off by asking to many questions. We were the biggest mail order business in the UK - GUS.

                        For most people we only used two pieces of infomation: the address and whether they had a telephone number. We bought the electoral roll on paper from councils and typed it in and the main part of the rating was whether you were on that and the past behaviour of people at and near that address. That was later made illegal.

                        The group's credit rating part was spun off, bought an american agency and changed its name to that of the american company - Experian,

                        Comment


                          #13
                          If you are looking to move, have you tried approaching your current mortgage provider to see if they will provide you with additional funds? They will know better than anyone your payment history so the broker may not necessarily be correct with the 12 months thing

                          Also, depending on the reasons for the missed payment (bank switching service etc) you may be able to get the mark removed from your credit file as a good will gesture, especially if it was a genuine mistake. But don't lie to get it off there, it will not be having a significant impact to risk that

                          Comment

                          Latest Activity

                          Collapse

                          • Getting into buy to let before 21
                            jack_dickinson
                            I've been looking at getting into letting properties as a SPV would this be possible at 19 as some lenders are picky on age as it would be under a business which i'm a director of would this make it more likely to obtain a btl mortgage. The LTV would be around 70%. If anyone could shed any light on...
                            15-02-2019, 22:21 PM
                          • Buy to let and re mortgage ... please advise..
                            Uselesswithmoney
                            Hello All

                            I am a first time poster so please be kind .. I know most of you lot are probably seasoned professionals but my dilema is .

                            In 2013 i inherited a property , i did it up and rented it out , it is still being rented at present ..(No Mortgage) current value about 275000....
                            14-02-2019, 19:28 PM
                          • Reply to Buy to let and re mortgage ... please advise..
                            loanarranger
                            If you let your present property because the market is against you but you buy a new primary residence , you will initially pay the 3% SDLT premium but if yourformer home is subsequently sold within a specific period ( I think it is 36 months) you are entitled to a rebate.

                            Inherited property...
                            15-02-2019, 20:35 PM
                          • Reply to portfolio landlord struggling for lenders
                            loanarranger
                            You seem to have misunderstood the criteria of BM & TMW , as you have 4 properties as BtL’s you fall under a much stricter affordability regime which does carry an assessment of each property meeting their Portfolio rental assessment, have an adequate level of income BM for example require a minimum...
                            15-02-2019, 20:30 PM
                          • To do up a property to sell or not?
                            Samwelly
                            We have had a long term tenant in a house we rent out for many years. They have now left, but the property is in poor condition and needs repainting inside and out and new carpets throughout. The bathroom needs completely re-doing. The question is whether it is always worth renovating before selling...
                            15-11-2018, 15:01 PM
                          • Reply to To do up a property to sell or not?
                            jpucng62
                            Certainly doing it up yourselves & getting a higher sales price is likely to generate a higher tax bill so is probably not worth it. But by spending just a little on it ie. getting it clean & slapping white / magnolia paint on the walls, you may increase the value by more than you spend. Most...
                            15-02-2019, 17:24 PM
                          • Reply to Buy to let and re mortgage ... please advise..
                            Uselesswithmoney
                            Thank you both for your quick responses ... another quick question if i may if i am selling the home i live in and remortgage BTL 75% , will i still have to pay the extra stamp duty charges because its a second home .....will the class the BTL (inhertied ) as the first home .. Thanks again
                            15-02-2019, 17:17 PM
                          • GBP zero valuation!!!!
                            dizzymill
                            Hi there.

                            My daughter has had an offer accepted on a 2 bed detached house that needs some improvements. Offer is 200k. The house in question is in a desirable location but at present is surrounded by land with lapsed planning for 12 properties (no social housing). Obviously once these...
                            15-02-2019, 15:03 PM
                          • Reply to GBP zero valuation!!!!
                            jpucng62
                            When I was buying my house we had a £0 valuation. Our house is on high ground with a wall around 2 sides approx 14 foot high outside the garden in places although only 2 foot inside the garden. There were some cracks in the wall & we had to get a structural surveyors report & then had to agree...
                            15-02-2019, 17:09 PM
                          • Reply to GBP zero valuation!!!!
                            loanarranger
                            A good broker will discuss the merits of the application supported by a copy of the valuation. Some lenders will do a soft footprint atAgreement in Principle stage and the hard footprint made when a full application is submitted. The brokershould egagewith his local business manager whom he knows will...
                            15-02-2019, 16:53 PM
                          Working...
                          X