Building Credit in the UK

Hey all, I've been living in Belfast now for about 7 months. My husband and I are looking to buy a home a couple of years down the road and I am hoping to do whatever I can to build my credit here in the UK. In the US I have pretty good credit.

In any case, I'm doing my research and planning now and would love to hear from those of you who have been at this for a while.

It can get a bit wearing how much extra process is in everything when you are not a natural citizen of a place  I still haven't sorted out a GP 

Do you have a UK bank account? When I first tried to get a UK credit card (after living in the UK for 2 years) the only bank that would give me one was the one I already had a current account with. Even then they'd only give me the same deal as someone who had never had a credit card (i.e. low credit limit, high interest rate), but at least I had a UK card to start building a credit rating with.

In addition, before I had ILR no bank was willing to put me on a mortgage. I've read on here that a mortgage broker can help with this, but seeing as we were only a few months from ILR we just delayed buying a house until I had it.

Is the GP surgery giving you problems? I think there is an obligation for everyone to be able to have a GP.

We used a mortgage broker when buying our house.  She only showed us lender's that were willing to lend to us while I was on FLR.  Not going to lie, our mortgage dropped like a rock after I got ILR - you definitely will have a higher rate by not being free from immigration control.

After I was here a year, I got a Capital One Credit Builder credit card.  £500 limit.  Used it and paid off each month to get the limit raised.  Slow but steady.

I'll sort out the GP thank you though, it has just been a pain as all of our utilities are prepaid and I have all official documents sent to my inlaws.

It is good to know about ILR being so important to a mortgage. I guess we'll probably have to be renters longer than I had hoped.

I'll sort out the GP thank you though, it has just been a pain as all of our utilities are prepaid and I have all official documents sent to my inlaws.

It is good to know about ILR being so important to a mortgage. I guess we'll probably have to be renters longer than I had hoped.

Still explore the option of buying.  There's no obligation when using a mortgage broker, they get paid by the mortgage companies.  It could be beneficial to buy, it could be beneficial to wait.  You'll only know after you look into it. 

John Charcoal (sp?) is a well known broker who found us a mortgage when my visa was close to expiring.  Not cheap but they'll most likely know what they are talking about.

We used London and Countries (??) about 2 months before I got ILR. Got a better than advertised rate from the Post Office!! Highly recommend.

Building credit happens here like it did when you were in the states: slowly and with a bit of thoughtfulness. Bank account. Name on bills. Credit card on high rate (pay off each month to avoid actually paying the interest). Then get a phone contract. Then perhaps a car? Then a house...

I bank with HSBC, and they were happy to give me a credit card after 90 days of banking with them. I often hear it takes a year for a foreigner to get a credit card in the UK, but with them it appears to be easier. 

Then get a phone contract. Then perhaps a car? Then a house...

Furniture shops usually offer 0% credit and the typical spend is less than £1k, so that is also a good way. We tried it after being in the UK for a year and we were never refused.

(pay off each month to avoid actually paying the interest)

What is this of which you speak?! 

Hi. Went to RBS, asked for a 500 pound credit card to build credit, and they approved me for one over four times as much, no problems.  Had an option for one with 23% interest plus rewards (with a fee that they refunded because of my current account) or one at 11% interest with no rewards or fee.  Went with the higher interest one and plan to use it for pretty much only groceries and expenses I'll immediately pay off.

We would like to be able to buy a home here someday, but I think the age issue is going to hit us pretty hard. Might have to just give money to the Daughter to purchase the home or something. Am reading lots where the lenders normally won't lend to people my age and up, and the few who do only do very short payback times.

Thanks all for the advice. I'm in Northern Ireland, so I'm not sure if the property market is any different here than on the mainland.

I've been here since the end of May so I will wait a few more months and then try to get a credit card. I've also got to pester my husband to add my name to the phone bill. It is tough because here in Belfast pretty much all of our utilities are top-up cards when you are a renter.

I'll sort it out in time, thanks again everyone!

We would like to be able to buy a home here someday, but I think the age issue is going to hit us pretty hard. Might have to just give money to the Daughter to purchase the home or something. Am reading lots where the lenders normally won't lend to people my age and up, and the few who do only do very short payback times.

Yeah, this is a bit unique to the UK I think.  Our mortgage term cannot go past the age of one of us being 65.  So instead of a 30 year mortgage, you get one specifically for your number of years until 65.  Definitely different!

Yeah, this is a bit unique to the UK I think.  Our mortgage term cannot go past the age of one of us being 65.  So instead of a 30 year mortgage, you get one specifically for your number of years until 65.  Definitely different!

I think it might depend on the age you are when you take out the mortgage? My mortgage term is 35 years and it ends when I'm 68, not 65.