Spin off thread - credit scores

I know nothing of mortgage ( apart from it meaning dead pledge ), so I'm not sure if I was told right, but years ago when a friend bought a house, he told me the first 25 years would pay of the interest, then only when that was paid off could he begin paying off the loan, and if he tried to pay it off faster it would cost him more.

I'm old enough to remember tax relief on mortgage payments.
Worked out that every pound you paid in mortgage got you some back as tax relief.
Can't remember the exact figures but you spent, for example, 95p for every pound you paid off your mortgage.
 
Mortgages are generally 25 years, you pay off more interest in the first 10-15 years and only after that you pay back the capital, with it all finishing on 25 years, that is for a repayment mortgage. There are other mortgages, interest only where the full capital is due after the loan period and the endowment con - mortgage that was all the rage in the 80's

I switched to an endowment mortgage before I left the army (early 80s.).
A man from the Pru came to see us and put us straight.
As we moved we increased the policies to cover the purchase price.
Some 3/4 years before the policies matured we had sufficient cash in value to pay off our mortgage with some ,000 to spare.
Endowments, if with the right company were a good deal.
I believe, many people, me included, were mis sold whole life policies believing them to be endowments.
 
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Donny

ADC
I'm old enough to remember tax relief on mortgage payments.
Worked out that every pound you paid in mortgage got you some back as tax relief.
Can't remember the exact figures but you spent, for example, 95p for every pound you paid off your mortgage.
MIRAS - Mortgage Interest Relief at Source. It was still going in the early 90s when I had a mortgage. It took a few quid off the payments but it bloody needed to with a mortgage rate of pushing 10%!
 
MIRAS - Mortgage Interest Relief at Source. It was still going in the early 90s when I had a mortgage. It took a few quid off the payments but it bloody needed to with a mortgage rate of pushing 10%!
Damn near 13.5% on our first house.
Try that now?
Mass bankruptcy.
Then again we were earning around 8.5% interest in our BS savings.
Would not mind some of that now!
 
MIRAS - Mortgage Interest Relief at Source. It was still going in the early 90s when I had a mortgage. It took a few quid off the payments but it bloody needed to with a mortgage rate of pushing 10%!
Pah! I give you 15/16% early 80s.:)
 
For may people the use of credit is the norm and thus having a good rating is critical
I maintain a good credit rating in case I need to borrow. I have no need for a Credit card (less the additional consumer protection) as my only debt is my mortgage, but use one to demonstrate that I am a low risk, in case I need Credit in future.
 
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Man Pig

Old-Salt
You can certainly live without a credit rating, as long as you are either rolling in money or have very simple tastes and budgets, eg (exaggerated for effect):

You will move into the family pile, or will be living in council accommodation.

You can walk into the Rolls Royce dealership and pay cash, or follow the bosshog route of serial banger ownership.

Treading the middle road of mortgages, car loans etc is easier (and cheaper) with a strong credit rating. There are also protections associated with credit card purchase that can be well worth having.
Think you may struggle to pay more than 9k in cash for anything these days through a legitimate company. They will claim money laundering regs prevent them acceoting more. A friend of wifey works in a bank & they alert whichever govt dept it is, HMRC? ( I cant remember who, if you deposit more than 9k in your bank account.
 
I maintain a good credit rating in case I need to borrow. I have no need for a Credit card (less the additional consumer protection) as my only debt is my mortgage, but use one to demonstrate that I am a low risk, in case I need Credit in future.
I agree Credit Cards are useful .... if used wisely
 

TamH70

MIA
Why do you think we all avoid the bugger?
Judged by the company you keep is why.........:eek:










;)

I will find you. And I will deliver tools of tonsorial splendour to you. And call you Alfonse.
 

Aphra

War Hero
Just to correct something mentioned earlier. Council Tax payments are not reported to Credit Reference Agencies and do not affect your credit rating. Even if you are taken to Court for non-payment, as it's the Magistrates Court, it still isn't recorded on your credit score in the way a County Court Judgment (CCJ) would be. Local Authorities don't generally report to Credit Reference Agencies at all and even where they have a CCJ against someone, it's the Court that provides the information, not the Local Authorities. County Court listings are, like virtually every Court, a matter of public record, as are the outcomes of cases (with some exceptions).

One area involving Local Authorities which does impact credit ratings is the Electoral Roll. Not being present on the Roll is a factor on which most lenders would automatically decline credit. There's no reason not to be on the Roll nowadays with what's called 'rolling registration', where you can be entered on the Roll as soon as you move home, rather than, as previously, having to wait for the two yearly registration exercise. The Electoral Roll is, as many will know, also a public record and is purchased by Credit Reference Agencies so their clients (creditors) can check whether applicants are registered. If you have reason not to appear on the public extract of the Electoral Roll, say for security reasons, you'd need to make the lender aware of that when applying for credit.
 
(Credit check to get a job)
Are you thinking of Australia?

Financial declarations & checks are part of some security-cleared jobs & banks maybe. Never heard of it for the majority of jobs.
No, I’m not thinking of Australia; I’ve no idea whether credit checks are done here as I’ve never had a job here.

I was credit checked for a corporate executive role in the UK in 2007. As I said, it’s used for some jobs.
 
MIRAS - Mortgage Interest Relief at Source. It was still going in the early 90s when I had a mortgage. It took a few quid off the payments but it bloody needed to with a mortgage rate of pushing 10%!
You sure? I thought Lawson aboliished MIRAS in 1988
 
I maintain a good credit rating in case I need to borrow. I have no need for a Credit card (less the additional consumer protection) as my only debt is my mortgage, but use one to demonstrate that I am a low risk, in case I need Credit in future.
Exactly that. Almost everything I buy goes on a credit card which is then paid off in full every month. It's no different to using a debit card except a bank is more likely to lend me money if needed in future. If it gets me a slightly cheaper mortgage rate then even beter.
 
Exactly that. Almost everything I buy goes on a credit card which is then paid off in full every month. It's no different to using a debit card except a bank is more likely to lend me money if needed in future. If it gets me a slightly cheaper mortgage rate then even beter.
You should ask to raise your credit limit every 6 months as well.
 
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