Passing a credit score can be quite difficult for some, especially when applying for a mortgage. Some credit scores can be harder to pass, depending on the lender. Lenders rarely give out the reasons as to why you didn’t pass, due to them not wishing to disclose the contents of their scoring system. As such, if you were hoping to find out why you didn’t pass, you may unfortunately never find out.
This is where an experienced Mortgage Broker in Liverpool may be of assistance. Once you obtain a copy of your credit file, your dedicated Mortgage Advisor will be able to take a look at it with you, working out which lenders you’re better off looking at for your mortgage. Putting down more deposit also makes passing your credit score easier and possibly opens you up to better rates once your mortgage process is underway.
There are many things that you can do to improve your credit rating. You should use any credit cards you’re in possession of regularly and ideally pay off the full balance each month. Being on the voters roll to show where you live also helps. It’s recommended that you close down old bank accounts, credit cards and store cards that you no longer use.
Failing a credit score for one lender doesn’t mean your home-owning dreams are over, so don’t give up! You may find that another lender is willing to accept you. Be warned though that having too many hard credit footprints registered against you may have an adverse effect. Having too many credit searches can have an effect on your credit score.
Mortgage lenders each have unique ways of calculating the amount you are able to borrow. In theory, you could approach 10 different lenders and get 10 different answers, though this depends on who you speak to. Some lenders can be more generous than others. For example when an applicant classes themselves as self-employed.
The lender may consider assessing 100% of an employee’s bonuses and overtime, although this isn’t the case for all lenders. They might accept income that isn’t directly earned through work, such as tax credits, child benefits and maintenance.
When starting out with an enquiry, many lenders will only require an affordability assessment to determine your potential course of action. The name given to these is “soft searches” and helps it give them a rough idea of how to proceed without leaving a hard credit footprint.
Alternatively, some lenders will only perform a “hard search”, which includes a mandatory credit check, as well as their affordability assessment. Click the following link to find more information on hard & soft credit searches.
If you are in the market to buy a home, we recommend having an affordability assessment carried out before you engage in home viewings, as this lets you avoid potential disappointment. Proving you have been able to maintain mortgage or rent payments in the past isn’t a guarantee that you’ll pass the lenders own affordability assessment.
Lenders will each have their own strict individual lending criteria. Some lenders may be better options than others, depending on your personal circumstances. These lenders look to carve out a métier market for themselves, with the goal of attracting high-quality mortgage borrowers who might not have been a fit for their competitors.
Here are some examples at to why your mortgage application may be declined:
As a fast and friendly Mortgage Broker in Liverpool, we’ll use our experience and knowledge of lenders and their criteria to make a personalised mortgage recommendation for you. Over the years our team have been able to help many First Time Buyers in Liverpool, as well as people looking to Remortgage and in the market to Buy to Let.
If you have a unique or complex situation, we would recommend that you speak to a Mortgage Advisor in Liverpool as being declined with various lenders directly could negatively affect your chances of being accepted for a mortgage.