Financial Advice

I really am asking for a friend. Honest, I am. If anyone knows anything about credit scoring, please read on...

A friend of mine is aged 25 and has a decently paid job as a paramedic. She's saved up a reasonable deposit and wants to buy a house. The problem is, she's found out that a number of years ago her mum fraudulently took out some loans in my friend's name, without telling her. I'm not sure of the exact details, but she had difficulty with repayments and as a result my friend now has a poor credit rating and consequently can't get a mortgage. She's investigated ways of getting her credit score changed but she's not got anywhere.

She's still living at home, but the atmosphere is terrible because of this. She realises her mum has committed a criminal offence but doesn't want to get her into trouble, even though her mum has no regrets and won't apologise. She's asked me for advice, so I'm asking you. Any ideas?

 

I expect the only way to clear it will involve filing a police report against her mum

 

I suspect you're correct. I've told her to shop her, but of course that's her decision.

 

I suspect this is correct. The only way back now is to get them paid off asap and start to rebuild credit rating back up. It will take a long time for it to drop off though. She could go see a broker and see what they can do, I suspect that’s her only chance as approaching a bank alone won’t go well. She definitely shouldn’t apply for any kind of credit unless she’s certain she can be accepted otherwise she’ll have to declare being turned down too which will make things worse.

 

Thank you. As far as I'm aware the loans have been paid off, it was all several years ago when my friend was still a relatively naive teenager. She's desperate to get away from home and she can afford a house. I've a mate who's a mortgage broker, thanks for that tip, I'll have a word.

 

If they are paid off then I definitely think the broker is the best way to go. I didn’t bother with one when buying as I enjoyed doing the research but for anything more complicated like this then it takes the risk out of it. Has she had a recent credit report done? You can get a detailed one for a few quid (you can get paid to get one if you go through a cashback site and then cancel the free trial) and then she can see what’s what. Simple things like making sure you’re on the electoral role can boost it. I struggled at first as never had any debt at all which goes against you so I switched utilities to my name and got a cheap phone contract and within a year it was as good as you can get.

 

Yes, from Noddle and Experian. I'm meeting her for a curry tomorrow so we will discuss it in intricate detail. She's fuming about her mum, she says her mum has ruined her life, but she can't bring herself to speak to the police about it.

 

Move out? Her mum doesn't seem bothered about her so time to cut ties. Honestly it's the best thing she can do although it will seem hard at first. As to the mortgage see a specialist mortgage broker and listen carefully to what they say.

 

Also companies like Experian big up the credit score thing to get money off people. Banks have their own checklist for mortgages and I've known people with a so called very good score get refused.

 

Her mam sounds like a right selfish lovely person......******* shop her......sithi.

 

Lol.......I meant a selfish cu next tuesday ......shop her .......sithi.

 

She wants to move out but she doesn't want to rent as she believes at her age that's dead money. Her partner is saying she can move in with him, but she's not ready for that and says if she does eventually move in it should not be for financial reasons. And in any event she wants to get "on the ladder".

Thanks everyone for your advice, I think the broker option is the way to go.

 

Renting shows you can manage your money though. Will give breathing space too as maybe she might want to move in with partner in time and together they might have a better hope for a mortgage. Lots of decisions but sometimes rushing into home ownership isnt always for the best.

 

All good advice thank you. I'll show her this thread.

 

Your credit score is a bit of an urban myth and an excellent marketing tool.

Mortgages these days tend to be as much about affordability as having a 999 credit score.

The credit report its self will be used to flag any financial anomaly and the ability to maintain repayments.

As for the fraudulent loans, upon discovering them she should have shopped her mum.

It is/was the only way to get them shifted out of her name otherwise the finance house will imply likely story.

Who was making the repayments?

Where these loans defaulted?

If so, when.

 

Cheers mate, as far as I know the loans were paid off but with difficulty resulting in the credit score issue. I'm not aware of all the details yet, still to find out. I do know though, that she's applied to a couple of banks for a mortgage, and she's been turned down with the reason given as a poor credit rating in both cases.

 

If the loans are repaid by her and/ or her mother she’s screwed trying to get them removed.

She needs to get a copy of her Experian or exquifax credit report. You can get a one off report as a pdf for a couple of quid.

Bit more accurate than Noddle which is powered by call credit and because it’s free tends to be a bit behind either of the two bigger agencies.

And tell her to stop applying for credit until it’s sorted. At least for the next six months.

 

Thank you, I'll pass it on.

 

https://www.tudorfcltd.co.uk

Try a good broker, one your friend can chat to open and honestly.

They’ll know which lenders are likely to assist and will no doubt have seen every scenario around.

Ask for Chris or Sam there, both very knowledgeable and great to deal with.

Link to the website above.

 

There is no universal "credit score". It is a fallacy created by companies like experian to charge you to improve it. Different lenders have different critria. You can file a notice of correction which lenders are legally obliged to look at but dont in reality take into account. After six years no matter how bad, it all drops off anyway.