Help with a mortgage

[linzi321]

I have applied 4 a mortgage and today found out it's been declined due to my credit score, I have been on credit expert and my finances are all positive with 1 late payment?? And that was back in 2007 !!!
My question is on the credit expert site it's says I'm using a 17% of credit available to me excluding a mortgage to me that sound ok but I don't understand it ??? Help anyone please x

[Buenchico]

How many credit cards have you got and, more importantly, what's the aggregate credit limit on them

For example you might currently have a total of £12,000 credit available to you across several cards, but only owe around £2,000. When your application for any further credit is considered (including for a mortgage) it's the £12,000 figure which is likely to be taken into account, rather than the £2,000 one. That's because you could go out and 'max' all of your credit cards the day after you got your mortgage, without needing any further approval for that additional credit.

If you've got several cards, try getting rid of most of them.

Chris

[linzi321]

I have 1 credit card which I owe 400 on my limit is only 2500 on it I don't understand why this is happening confusing me a
Little now!!!

[factor-fiction]

Have you any old credit card accounts you no longer use?

[arwyn]

It might not be anything to do with you'r credit, banks are just not giving any mortgages out for the time being.

[linzi321]

No I have no old cards nothing other than 1 credit card and a mobile phone contact that's it ??,

[cassa333]

I have no advice for you but sympthise about the credit score.

I owe nothing to nobody and my score is probably pretty poor as I don't have a credit card or loans so they don't know if I am a good bet or not.

Were you turned down simply because of the credit score or was there something else? Such as not using credit in the past?

As we all know, at the moment the banks are setting the criteria for acceptance very high so it may be that you may have been given a morgage in the past but don't qualify now.

If you don't mind me asking what is your salery and the size of the morgage you were after?

[dasherman]

A good way of increasing you credit rating is to pay off your credit card in full every month. If you're not doing that and the £400 you mention is an ongoing debt then that could be the reason. Although other factors like size of proposed mortgage, amount of deposit, current earnings and whether you're self employed will all be considered by potential lenders.

[boxtops]

It's worth your while spending a couple of quid and obtaining your credit report from one of the companies like Experian - those are the companies who the mortgage company will be contacting to assess your creditworthiness. If there is anything on your record which is incorrect (and therefore might have affected the decision re the above mortgage) then you can apply to have it corrected or removed. I did this and I am glad I did, there were people's debts showing on my record at one time which were nothing to do with me, just connected to my address.

[stephenis]

Well the answer would be the following:
Even if your score is an above average score the reason why you have not been approved is because it isnt considered strong credit. Banks like to see an active loaner and payer. If you do not have much of a history why would they think you are capable of paying a 2-3 hundred thousand dollar mortgage. You may have bought a psp but they want to see you own cars and larger projects and then see you capable of paying those off. Catching my drift? Im guessing you have a "weak" 720-750 score.
Correct me if I'm wrong.
Good Luck!