Hi all,
Am hoping someone out there can help put my mind at rest...
My situation - I am 31 and currently undergoing the mortgage application process with my husband on our first home, stressful enough at the best of times!
All should go ok - we are a professional, reasonably high-earning couple, have a 20% deposit saved, are both MOD security cleared (due to our jobs) and on paper look a pretty good bet - but for one worry I have about my credit score.
Maybe I am naive, but all my life I have been massively averse to debt. I only spend what I have in my possession, and do not use credit / store cards etc or go into overdrafts etc.
I never for a second thought that this kind of financial responsibility would actually adversely affect my credit rating (which I never had any reason to think about until now), which I was amazed to find is classed as Poor, simply because I haven't got much of a history to go on as I pay everything by debit not credit card!!
The only debt I have is £2,000 from a laser eye operation I had in January, and even then I was so freaked out by owing so much that I have paid over half of the original £4,500 off early in just three months!! However, this debt actually seems to have had a negative affect as, according to Experian, "the account is too new" to judge my ability to regularly pay back.
All this would say to me that I am a great person to give a mortgage, as I take my finances seriously and pay what I owe, but it seems the opposite is true...
My question is, will the bank take into consideration the fact that my credit history is poor because due to lack of history, rather than being full of missed / defaulted payments, CCJs etc etc....??
And if they do reject the application on this basis, is there an option to appeal the decision...?
My husband, dad and mortgage broker say not to worry, but easier said than done at times like these...
Thanks in advance for any advice!
Am hoping someone out there can help put my mind at rest...
My situation - I am 31 and currently undergoing the mortgage application process with my husband on our first home, stressful enough at the best of times!
All should go ok - we are a professional, reasonably high-earning couple, have a 20% deposit saved, are both MOD security cleared (due to our jobs) and on paper look a pretty good bet - but for one worry I have about my credit score.
Maybe I am naive, but all my life I have been massively averse to debt. I only spend what I have in my possession, and do not use credit / store cards etc or go into overdrafts etc.
I never for a second thought that this kind of financial responsibility would actually adversely affect my credit rating (which I never had any reason to think about until now), which I was amazed to find is classed as Poor, simply because I haven't got much of a history to go on as I pay everything by debit not credit card!!
The only debt I have is £2,000 from a laser eye operation I had in January, and even then I was so freaked out by owing so much that I have paid over half of the original £4,500 off early in just three months!! However, this debt actually seems to have had a negative affect as, according to Experian, "the account is too new" to judge my ability to regularly pay back.
All this would say to me that I am a great person to give a mortgage, as I take my finances seriously and pay what I owe, but it seems the opposite is true...
My question is, will the bank take into consideration the fact that my credit history is poor because due to lack of history, rather than being full of missed / defaulted payments, CCJs etc etc....??
And if they do reject the application on this basis, is there an option to appeal the decision...?
My husband, dad and mortgage broker say not to worry, but easier said than done at times like these...
Thanks in advance for any advice!