As mortgage advisors it’s our job to check you are in good shape to proceed with a mortgage application. This includes ensuring your credit score will satisfy the lender. We advise all of our clients to share their credit report with us during their initial meeting and discuss with us their credit history. We can then immediately see if there are likely to be any issues with your mortgage application and if necessary devise a strategy to try and rectify a bad credit score or select a lender that has more lenient criteria.
To help a lender assess your mortgage application, it is usual that they will use a form of scoring system to decide whether to accept your application. Different lenders give different levels of importance to your circumstances, and some set a higher pass mark than others.
It is normally based on three core areas
Public record information (e.g. the electoral roll),
Credit account information (e.g. records of amounts of loans and your payment history), and
Search information (e.g. the number of applications you have made for credit).This means that care is required to ensure you approach the most suitable lenders. Any application will be recorded as a search (even if unsuccessful) and can then influence other lenders’ decisions.
We advise you to do the following in advance of us making a mortgage application
Check your credit file. The information isn’t always accurate and you can ask the agency to correct any inaccuracies.
Make sure you’re on the electoral register. Lenders can be a bit suspicious of anyone not registered to vote
Check your address is current on all your credit, bank and mobile phone accounts. You don’t want to give the impression that you have more than one address
If you have credit cards you don’t use, close the accounts. Having several credit cards can count against you
Make sure you pay all your bills on time. Being only a few days late can result in a default showing on your credit file
Avoid using payday loans. It will make you look like someone who can’t manage money.
Most lenders will use Experian.co.uk and we recommend that you also use them.
Visit www.creditexpert.co.uk , scroll down the page and select ‘start my 30 day trial’
You will need to enter your details and your credit or debit card. If you cancel your trial within 30 days no payment will be taken from your account.
Run and download your report to share with your adviser. This will make you both aware of any issues that will arise when applying for a mortgage.
Your home maybe at risk if you do not keep up with your mortgage repayments.