Applying for a mortgage with no credit history

Kenno90

Just looking for some advice.

I plan on moving out of the family home and get an apartment in the coming months. I've substantial savings that would be used as a deposit.

The thing is, I've no credit history. I've never taken out a loan or applied for a credit card, The nearest thing i have to a bill is my Phone bill. Would the banks look negatively at me since they have no proof of me paying bills.

I've got the job, the savings just no credit history.

Snowshower

Everyone has to start somewhere....if your savings are with a bank try them ..permanent tsb popular at the moment with no fees on transactions, provided 1,500 going through your account each month. (Open to correction but think this to be the case).

Good luck

Trish56

Kenno90 wrote: »

Just looking for some advice.

I plan on moving out of the family home and get an apartment in the coming months. I've substantial savings that would be used as a deposit.

The thing is, I've no credit history. I've never taken out a loan or applied for a credit card, The nearest thing i have to a bill is my Phone bill. Would the banks look negatively at me since they have no proof of me paying bills.

I've got the job, the savings just no credit history.

Kenno90 You should have no problem getting a mortgage once you qualify with the lender on earnings and savings. The lender will look for 6 months current bank statements and once managed correctly these should be sufficient. If you apply to your own bank they will already have details of your current account.
Best of luck with your application.

TrishSimon

Kenno90 wrote: »

Just looking for some advice.

I plan on moving out of the family home and get an apartment in the coming months. I've substantial savings that would be used as a deposit.

The thing is, I've no credit history. I've never taken out a loan or applied for a credit card, The nearest thing i have to a bill is my Phone bill. Would the banks look negatively at me since they have no proof of me paying bills.

I've got the job, the savings just no credit history.

If you have sunstantial savings my advice would be don't purchase an apartment possibly purchase a small house you will have costs of management companies etc and all the hassle from them.
I bought an apartment in D24 in 2009 and I regret not holding out for a house.

coylemj

Trish56 wrote: »

Kenno90 You should have no problem getting a mortgage once you qualify with the lender on earnings and savings. The lender will look for 6 months current bank statements and once managed correctly these should be sufficient.

+1 if they ask for 6 months, bring in 12 months of statements. The lack of a credit history means you have to shower them with data which shows that you are managing your finances and have the ability to make the monthly payments.

Kenno90

Just an update on this, i've been in talks with them, and they weren;t too bothered about my lack of credit, they said no credit is better than bad credit.

In the end (in my case) it wasn't a big factor

TrishSimon

Good news so best of luck with buying your first home.

Kenno90

TrishSimon wrote: »

Good news so best of luck with buying your first home.

Thanks , i'm terrified

TrishSimon

Kenno90 wrote: »

Thanks , i'm terrified

You've no need to be terrified, if you are organised its an easy process, get yourself a good solicitor who will explain everything to you and don't pay over the top for legal fees. It's a bit of a drawn out process it can take a few months to finally get your keys, there will be stress along the way but nothing that can't be dealt with.
Don't get into bidding wars as estate agents can sometimes do that to get the best deal, decide what your max limit is and stick to it. Make an offer on somewhere ex. 120K even though you might have 145K to spend, if that offer is rejected you can the maybe offer another few thousand and see where you get but don't stretch yourself also rememeber if you purchase an apartment you may have to pay maintenance fees usually 6 months upfront.

Check out the area you are interested in buying in at night, on weekends and during the day also the rental potential for down the road if you wanted to do that route.
What area are you hoping to buy in?
I purchased in D24 in 2009 a one bed apt and I am sorry I didnt try and save more to buy even a town house. I have it rented out now since 2012 and its going great.

Kenno90

Thanks for the tips

I've so many options to think about. I was even considering buying a one bed and renting it out, but i've heard becoming a LL can be stressful.

Alot of people have suggested buying a house instead of an apartment, and to be honest id prefer a smallish house, it only has to be a 2 bed.

TrishSimon

Yeah I'm a landladyvat the moment I have a brilliant tenant I did live there but moved out in 2012 and rent myself now but we are in the process of buying a house.you can get a terrible tenant who wrecks the place and you have to do it all up again plus some tenants hassle you for everything, if I was you I would buy a house you could get a great bargain at auctions check out colliers they do auctions all the time plus a small townhouse or a two bed house is better than an apartment. Property companies wreck your head looking for fees all the time the min fee is around 1200 per year. If I was buying again and had a decent deposit I would go for a house ��