Spolton Mortgages secured a first-time buyer mortgage for a Lincoln buyer with no credit history

Spolton Mortgages secured a first-time buyer mortgage in Lincoln for a young buyer with no credit history, finding a lender that assessed a thin credit file pragmatically and at no extra cost.

The challenge. A young first-time buyer in Lincoln came to us with a strong deposit but a thin credit file. He had never taken out a loan, a credit card or any other finance, so there was almost nothing on his credit record to look at. That is more of a hurdle than most people expect. Lenders want to see evidence that someone reliably repays what they borrow, and when there is nothing there to assess, it can be hard to prove the ability to keep up a mortgage.

What Tom did. As a whole-of-market broker, Tom looked past the lenders that simply score a thin file as a decline and found one that takes a more pragmatic view of a client’s overall position, rather than leaning on the credit score alone. The important part: this did not cost the client more. He was not pushed towards a specialist or a higher rate because of the gap in his history, which is often what happens when a thin file is handled the wrong way.

The outcome. The client secured a good rate and is now settled in his new home.

Who this helps. A thin or “no history” credit file is common for younger buyers, and for anyone who has simply avoided borrowing. It is not the same as bad credit, and it does not have to mean an expensive mortgage. The right lender, matched to your circumstances, is what makes the difference.

If you are buying your first home and worried your credit history is too thin, speak to a first-time buyer adviser.

Your home may be repossessed if you do not keep up repayments on your mortgage.