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Adam Hosker · 21-08-2012, 04:35 PM

A bit of experience to share with the Tribe and Buy to Let Mortgage Applications for persons who may have Missed Payments, Defaults or CCJ's.

If you have not done so already, prior to applying to a Lender it may be wise to check your Credit File. Their are two main ones Experian and Equifax, In my experience most lenders use Experian, YOU can view your Experian credit file on Credit Expert.

Most people will look at their Credit Score, DON'T.
All lenders have their own Credit Scoring System so its just an estimate.
You want to look at your Credit File itself.

If their are ANY blips on their, be that missed payment, default or anything then let your Broker know.

Some people believe if they claim they have no Missed Payments on Applications and don't tell the Broker. Then they wont notice, wrong. This will only get your application REFUSED with an extra SEARCH on your file (which never helps) and wastes your time and money.

If you disclose from the outset that you have a Missed Payment, Default or CCJ then this gives your Broker a better fighting chance.

If you had a small blip such as 1 missed payment in recent months but have been paying correctly for some time, then a good Broker will know that a Human Underwriter with the same information would take a common sense view.
A Good Broker could presume that the automated systems of the Larger Lenders would refuse it flat out, except a word with the Lender Prior to Application could help get past the automated system.
A Good Broker can also take a view on temperamental lenders and those that are more willing to lend and place with the better choice.

Their are also other options for those in a worse position, whilst generally if you have a CCJ or Default the chance of getting finance is Slim. Their are though some near prime buy to let lenders whom will conciser those with Defaults or CCJ's that are older than 12 months.

Put Simply: Tell the truth to your broker, they work for you on your behalf. Hiding things will hinder your chance for a Buy to Let Mortgage.

Kevin Wright · 21-08-2012, 08:03 PM

Excellent post Adam

Glenn Ackroyd · 22-08-2012, 08:40 PM

A L O N G time ago when I used to apply for mortgages, I was always wary of lenders messing up my credit file. Usually it would not be setting up a direct debit on a new mortgage, or once I had a credit card company change hands and they messed up the payments.

Given that I've got around 130 direct debits it is a big problem.

I subscribed to http://www.checkmyfile.com - You pay a monthly fee and can access reports anytime from Experian, Equifax and Callcredit. It shows you scores, searches and payment history for all your accounts.

If ever I spotted a problem - about 3 times, I intervened directly with the lender concerned and got the slate wiped clean.

John Flower · 22-08-2012, 09:19 PM

(22-08-2012 08:40 PM)Glenn Ackroyd Wrote: A L O N G time ago when I used to apply for mortgages, I was always wary of lenders messing up my credit file. Usually it would not be setting up a direct debit on a new mortgage, or once I had a credit card company change hands and they messed up the payments.

Given that I've got around 130 direct debits it is a big problem.

I subscribed to checkmyfile - You pay a monthly fee and can access reports anytime from Experian, Equifax and Callcredit. It shows you scores, searches and payment history for all your accounts.

If ever I spotted a problem - about 3 times, I intervened directly with the lender concerned and got the slate wiped clean.

I'm not a fan of checkmyfile. The claim to provide information from the all the major credit agencies but were very limited in their experian information.

I get the impression experian don't update them on as much as they claim.

Lisa Orme · 23-08-2012, 11:44 PM

Great post Adam. Have had clients who seem to think by not telling me the lender won't find out!

I agree about credit scores - they are just a marketing tool and bear no resemblance to reality. I've seen people with 999 refused, I've seen people with well under 600 accepted and in a recent case client had numerous missed payments in the last 12 months and still scored 999!

It's not cheap but there really is no substitute for subscribing to all 3 on their monthly alert service to stay on top of things and it's tax deductible as its important to your business.

Lisa

Paul Barrett · 24-08-2012, 07:35 AM

See FREE
http://www.noddle.co.uk
Forget the rest, no need to pay ever again.
This is run by callcredit and is totally FREE to use and operate.

Dave Reaney · 26-08-2012, 12:20 PM

(24-08-2012 07:35 AM)paul_barrett Wrote: See FREE
http://www.noddle.co.uk
Forget the rest, no need to pay ever again.
This is run by callcredit and is totally FREE to use and operate.

I agree that noddle is a useful free tool - but the information it provides is quite basic and (iirc) is only callcredit's data. For thse above who want all 3 - this would be insufficient.

I'm a noddle user - for me personally it provides enough.

Paul Barrett · 26-08-2012, 11:55 PM

(26-08-2012 12:20 PM)djr Wrote:
(24-08-2012 07:35 AM)paul_barrett Wrote: See FREE
http://www.noddle.co.uk
Forget the rest, no need to pay ever again.
This is run by callcredit and is totally FREE to use and operate.

I agree that noddle is a useful free tool - but the information it provides is quite basic and (iirc) is only callcredit's data. For thse above who want all 3 - this would be insufficient.

I'm a noddle user - for me personally it provides enough.

Not quite sure how you work that one out.
noddle info is identical to experian and equifax
My details are exactly the same.
ALL CCJ's and ANY legal info will be on the file
There are some lenders that don't supply info to callcredit; but not many.
If really needed then a £2 statutory report is all. that is needed is to order them.
There is no need to sign up to unecessary and expensive CRA services.

John Corey · 29-08-2012, 02:20 PM

Lisa,

I think your statement that "they are just a marketing tool and bear no resemblance to reality" is a bit too sweeping.

I agree that the score is not the only decision point so a high score will not be an automatic approval. Saying that they bare no resemblance to reality implies flipping a coin is just as valid. Credit scores are way more than just a marketing tool.

Lisa Orme · 29-08-2012, 07:12 PM

You are entitled to your opinion John I am entitled to mine; at least I backed mine up with factual information!

Lisa

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