Credit Problems

Financial information on most of the UK's residents is stored in what we know as Credit Reference Agencies. These agencies grant lenders information on potential borrowers, this information helps the lender to decide if they are willing to lend to a borrower. Credit Reference Agencies themselves do not make credit decisions they only provide information to creditors.

Some of the information is public information such as address (can be found in electoral register), county court information (CCJ) and bankruptcy information. If you are not on the electoral register it will be hard to find a lender who will grant you finance. Credit Reference Agencies are able to find if you have any discrepancies against you. They have information on past and present credit accounts and credit agreements that borrowers have with their lenders.
Credit information is shared between the lenders as and when they require it. Details of a fully repaid loan is not the only information a lender will find at CR agencies as they can also inform a potential lender if you have had difficulty repaying any past finance, this of course will affect your your present enquiry for a loan.

If you have had an Enquiry turned down it could mean that your credit score may have been lower than the acceptable cut off score. Perhaps you have changed jobs or changed address frequently. Your credit score is determined by the examination of many details and factors, such as marital status, employment, address, past and present credit history etc.

If you already have several credit commitments which you have no trouble managing you may well still be refused for further credit by lenders, this may simply be because they believe that given anymore credit you may get into payment difficulties. However you can appeal by showing bank statements along with any proof which you believe will support your credit Enquiry, this sort of evidence could help potential lenders to change there minds.

Having Difficulties Repaying A Mortgage
Always contact the lender immediately if you are having difficulties repaying the finance. There is nothing to be ashamed of, perhaps there has been a unforseeable change to personal circumstances. Your ability to pay may have been affected but it may be a temporary set back such as redundancy.
If action is taken and advice sought early enough debt can be controlled. An agreement could be reached with the lender if you communicate with them. They will be able to take into account your currant budgetary condition and may still be able to ensure you are contributing something towards the debt that you owe. They may be able to prevent your debt from spiralling out of control.

Contact the lender and make a plan to pay off any debts. Taking this action may in turn help a borrowers credit rating in the future. Do not take out a UK mortgage if you know you will be unable to make the repayments.