Young Credit History: An Interesting Case Study

Posted 01-08-2018

Clients that haven't established enough of a track record taking out and repaying credit can easily fail other lenders' credit scores.

But having a young credit history doesn't mean they have to miss out on getting a mortgage.

Rob Barnard, Director of Sales at Pepper Money outlines how we were able to secure a mortgage for a client with a young credit history in "The interesting case of foreign national first-time buyers."


Hi. I’m Rob Barnard, Director of Sales at Pepper Money.

There’s a good chance that some of your clients will fail a credit score because they just haven’t established enough of a track record of taking out and repaying credit.

Having a young credit history is a common reason for missing out on a mainstream mortgage, particularly amongst first-time buyers.

But it doesn’t mean they have to miss out on a mortgage altogether and it is important that you work with a lender you can trust, to look beyond a credit score and make lending decisions based your clients’ true circumstances.

At Pepper, this is what we do every day, and it’s the approach we took when we worked with a broker on the interesting case of “the foreign national first-time buyers”.

The clients were a married couple who moved to the UK to set up a company importing timber products from Poland.

They lived in rented accommodation while they established the business and, as it grew more successful, they decided that they were ready to buy a home.

But as foreign nationals living and working in the UK, not all lenders were willing to consider their application as they had no UK credit history.

What’s more, the business only had one year’s worth of published accounts and the couple were looking for a large loan of nearly £700,000 at an LTV of 85%.

Fortunately, at Pepper, our skilled and mandated underwriters were able to establish evidence that the couple had made regular rental payments to their landlord and their other requirements sat comfortably within our standard criteria.

So, they were able to borrow the money they needed to own their first home in the UK.

There is often an interesting story behind your client’s credit score, and at Pepper, we want to hear it.

If you’re interested in finding out more, visit our website at - No ‘.com’ required.

All our case studies are based on real cases but the names have been changed.

This case study is based on criteria in effect at the time this case was submitted and reviewed by Pepper Money. We reserve the right to change or amend our criteria at any time.

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