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

                          • New tax rule question
                            craig2222
                            I am just about to buy another property however I will be on the limit to go in to the higher tax bracket.By 2020 the higher tax will be 50000.By about 2021 I will be on 33000 with my job and income from property will be around 18000 to 19000. So that will bring to about 52000.Do you take allowable...
                            10-09-2018, 16:09 PM
                          • Reply to New tax rule question
                            Gordon999
                            Hi Loanarranger,

                            What does your UFML handbook say about UFML policy on offering mortgage loans for flat having leases below 70 years ?

                            and for leases with ground rent doubling up every 10 years ?
                            24-09-2018, 12:47 PM
                          • Reply to New tax rule question
                            loanarranger
                            A late Good evening Boletus
                            The CML no longer exists and has been branded including the handbook “UK Finance Mortgage Lenders' Handbook” Nothing however has changed in its contents apart from removing the previous name.
                            Have a great week.
                            23-09-2018, 21:54 PM
                          • Nobody is accepting my offers
                            platforminc
                            Hi All.


                            I am trying to be a newbie property developer, I operate mainly locally and what i am finding now is that despite the fact that i am offering the highest for properties, as soon as the dendors hear that i am a developer or simply put it this way (i am not interested in living...
                            20-09-2018, 09:55 AM
                          • Reply to Nobody is accepting my offers
                            boletus
                            Then you are wrong.

                            (Even though I think you are confusing this with repo sales.)

                            On that basis, any joker could put in worthless offers, chip on the survey, have a free punt on the market and waste everyone's time.

                            Question again to the OP-

                            Have you...
                            23-09-2018, 17:26 PM
                          • Reply to Nobody is accepting my offers
                            Gordon999
                            I am sure if there executor is not selling the asset for highest offer, he/she may be committing an offence under the Fraud Act 2006 .

                            If the property is really good, OP should up his offer to motivate the seller and tell the estate agent to do their job..
                            23-09-2018, 13:23 PM
                          • Reply to Nobody is accepting my offers
                            jpkeates
                            If it's a probate sale, they should definitely go for the highest bid (unless the time frame is enough to make that nonsensical).

                            The executor is acting for the estate, not what they think the deceased or potential beneficieries prefer, and an estate is unlikely to have a preference for...
                            23-09-2018, 10:02 AM
                          • Reply to Nobody is accepting my offers
                            boletus
                            I don't buy that. I've bought to live, let, flip or develop for years without it making any difference.

                            The latest one from the OP is a probate sale, IME they nearly always go for highest/quickest (serious) bid.
                            23-09-2018, 09:10 AM
                          • Reply to Nobody is accepting my offers
                            jpkeates
                            I suspect that the difference is that you're a landlord and proposing to let the property instead of developing it.
                            Lots of people would worry about the effect on their neighbours/friends when someone is planning to "develop" the property they plan to buy.

                            And some people...
                            23-09-2018, 08:55 AM
                          • Reply to Nobody is accepting my offers
                            tatemono
                            I was thinking the same thing from our experience.

                            In the last three years, we've bought four properties and viewed many many more in the area where we have our portfolio. We've never once had an offer rejected where there wasn't a counter offer. In every case, we arrived at an offer that...
                            23-09-2018, 03:33 AM
                          Working...
                          X