Any ideas?

[littleone85]

Me and my boyfriend went for a mortgage at Yorkshire Building Society, all was going well until they did the credit check......... me and my boyfriend being careful with our finances have never had credit cards or loans so we have no credit history. We went for a 100% mortgage but they'll only offer us 95%, which doesn't help much since if we had the 5% we'd have gone for a 95% mortgage in the first place!!!
The house we love is on the market at a great price so it won't last for long (�83, 950 for a 3 bed house) and depending on how long it takes to save the deposit (�4200) its unlikely we'll find many other three beds by then for a price we can afford. We don't want to try loads of companies because we've been told every credit check thats run shows on the record and the more you have the worse it looks.
What a condundrum!!!
Any ideas on what we should do?

[bednobs]

most lenders like to know that you have a record of being able to pay back debt before they will lend you anything. To build up a credit score, you need to approach your bank for a credit card, put, for example, your petrol on it, then pay it off at the end of each month. That way you will build up a record that you can handle debt. As regards to your current problem: Can you borrow the 4200 from family? or an employer?
i strongly believe that what is meant to be is meant to be, so if you miss out on this house, it will be for a reason (nightmare neighbours; gas leak; subsidence etc)
where do you live that a 3 bedder is that price????

[annie0000]

You also gets points added to your credit score for having a land line telephone in your name or utilities etc - can you get any of these added to your name? Having said that, not all lenders use the same score or even scoring mechanism, it may be worth approaching a mortgage broker to see if they can find you anything - they will be aware of the lending criteria of each lender and will probably only require you to have one more credit check. Also, although it does leave a footprint on your record, in most cases this is minimal unless you are being denied credit.

[littleone85]

Hi bednobs, my boyfriend suggested that we get a credit card and pay it off at the end of the month but i'd figured they'd see through such an obvious ploy, its worth a go I guess. Unfortunately we can borrow the money from anyone, my parents have agreed that the could borrow us �2000 at a stretch but they have there own mortgage payments to deal with so I don't want to stretch their finances. I live in Manchester, so average house prices for a 3 bed is a lot higher, its in an up and coming area that hasn't quite got the attention it deserves yet, mine and my partners combined income is �30000 so we can't afford much more that �90000 and the longer we wait, the more likely we'll be priced out of the housing market completely, thats why we went for the 100%, we had this idea that i'd leave uni (done), we'd save for driving lessons and a car then when we'd done that we'd save for a deposit for a house, then suddenly mid way through my boyfriends driving lessons we fnd ourselves in a position where there are very few houses we could afford based on our income and even fewer thre beds, so it was now or never so no time to save a deposit.
Annie 0000, we already have landline telephone, electric , internet and two mobile telephone bills against our names, I hadn't even considered that we might not be offered the full 100% because I thought that would be enough! Clearly not... the mortgage broker idea is good, i'll try that.
Thanks both of you

[bednobs]

ok, heres the thing ... why do you need three bedroomed house? why not go for something cheaper you can afford? like a one bedroomed flat? i know its quite usual when young to want everything now but you have to start somewhere realistic and if you can get a mortgage for a 3 bed then lower your sights.
have you tried northern rock? i only ask cause they lent us 103% (fees as well) when we were 1st time buyers and they do it with a mixture of 95% secured and a 5% unsecured loan

[littleone85]

Hiya, thanks for your reply, we wanted a 3 bed because we're planning on getting married and starting a family in the next few year so we wanted to get all the preparations in place beforehand. We did look at Northern Rock but they were more expensive than YBS, but in light of the current situation maybe its worth another look.

[bednobs]

its great to think ahead, but unless you have twins or triplets you probably wont need more than 2 bedrooms. there is nothing to stop you buying small now, and getting some equity and moving in 2 years time when you will have some money for a deposit. i am not trying to tell you how to live your life, but if you cant borrow what you need comfortably then lower your sights just to get on the ladder