If you have a higher credit score, you have a higher chance of having your mortgage application accepted. There are no guarantees of acceptance though, due to lenders having their own internal scoring systems.
Over the years, each lender will have developed its own scoring system. If you fail with one, don’t worry as you’ll still find other lenders who may be more forgiving. It’s the job of your dedicated Mortgage Advisor in Liverpool to match you up with the right lender.
Ideally, this happens the first time, though it’s not an exact science. Ultimately both you and your Mortgage Advisor in Liverpool have the same end goal; Find the best deal possible for you.
Throughout the UK there are various different credit reference agencies, including big names like Experian and Equifax. We’d recommend looking into getting credit reports from as many of these agencies as you can, to give you a better idea of your credit score.
There is a possibility that one of these agencies may have incorrect data on their system, so checking with multiple agencies helps identify such discrepancies.
Undertaking multiple credit searches can have a negative effect on your credit score, so we advise you to be careful when doing this. Price comparison websites are major culprits of credit searching individuals.
If you’re certain that you want to apply for a mortgage soon, it’s advisable to stay away from applying for other types of credit. Whilst, in the long run, having some credit and paying it back is great for your credit score, lenders aren’t too keen on seeing your borrowings increase prior to making an application for a mortgage.
Lenders love stability and being on the electoral roll indicates this, adding a lot of points onto your score. Make sure your name is spelt correctly and that your address is up to date, rather than being left at an old one. These days it’s really easy to change this online, so if you’re not registered or have details to change, this shouldn’t be any trouble.
Maxing out your credit score will reduce your credit score. It’s much more preferable to just use the card and pay off the balance in full each month, as it shows you’re good at managing your money. Worst case scenario includes exceeding an agreed card limit or overdraft. Lenders need to know that you take your finances seriously.
If you forget to tell one of your credit providers that you’ve moved to a new house, it can appear as though you’re living in two different places at the same time on your credit report, something which does happen often.
Double-check that all your addresses are spelt correctly. If you’ve lived in a flat this can prove tricky, as the flat/apartment numbers can be formatted differently.
If you have store or credit cards that you no longer use, get in touch with the providers and close down the accounts. During the short term after it may have a negative effect on your credit score as the credit reference can’t completely tell if it’s you or the provider who shut down the account.
Don’t worry though as with one step back comes two steps forward. It’s also great for reducing your chance to fall victim to fraud, in the event you didn’t realise you’d lost a card you haven’t used regularly.
Having a family member or ex-partner connected to you could also affect your score. The issue here is that if the account is still live, you won’t be able to get the financial association removed. Contact a credit reference agency and make a request to remove one of these links.
In the eyes of many consumers, credit scoring is an unfair way for lenders to assess mortgage applications. On the other hand, lenders feel it’s much cheaper for them to operate this way and the help of the computer gives more consistent outcomes.
From the beginning, send your Mortgage Advisor in Liverpool an up to date copy of your credit report, as this will increase your chances of being accepted the first time. The more details of your finances that your advisor knows, the better off you’ll be.
There are still a few small lenders out there who don’t need your credit score. They do things the old-fashioned way, manually, though they still have certain rules about the number of defaults and CCJ’s that are allowed.
Whether you’re a First Time Buyer, Home Mover or looking to Buy to Let in Liverpool, our team will stay by your side throughout the whole process. Please get in touch if you’d like to discuss your mortgage options.