Ill health did not stop us getting a loan
BLACK marks on a credit record caused by ill health or job loss can scupper a mortgage application.
This prospect faced 43-year-old Louise Forshaw from Preston, Lancashire. She was diagnosed with breast cancer four years ago which meant her husband Gavin Naylor, 35, temporarily gave up work as a joiner to care for her.
After returning to work two years ago, Gavin began rebuilding the family’s finances so they could buy their council home. Louise, who is now cancer free, says: ‘Our bank said we could not have a joint mortgage because of my poor credit record.’ But Louise’s son from a previous relationship directed her to his lender, Manchesterbased Together. She says: ‘It looked at all our details and listened to us.’
Together agreed a loan of £44,000 to enable Louise and Gavin to buy their home. Louise says: ‘Now we own our house and are not throwing away money on rent.’
Ishaan Malhi, founder of online broker Trussle, says tainted credit scores do not spell the end for hopeful homebuyers. He says: ‘It is more difficult to get a mortgage if you have a bad credit score but lenders such as Kensington, Aldermore and Magellan Homeloans are experts at providing finance.’
Certain black marks can also be easily erased. Malhi says: ‘Your rating may be impacted by forgetting to register to vote or failing to close a credit card account that you no longer use.’
Saving for a larger deposit can also prove creditworthiness. If you take out a credit card aimed at borrowers with an impaired credit record you can improve your credit rating by making repayments on time and in full.
Check your credit history at CallCredit, Equifax and Experian – but avoid being tied into an expensive subscription.