Mortgages Uncovered

Ok, so you followed the advice in our earlier article and got yourself either the Statutory Credit reports or maybe you went the whole hog and got the all-singing, all-dancing online versions complete with charts and pretty colours, but hey, now what?

Lenders score you on five different areas, so here’s our top five tips on how to improve your credit score so you can get yourself not only accepted for that mortgage application, but get a better deal and a lower interest rate to boot!

Payment History
This is the top factor. Start by checking for any accounts or details that aren’t yours. Sometimes, you can even find that there’s someone else in the UK with the same name as you and their details will be on your credit report or an ex-partner’s accounts may still be linked to you. Check for any late payments that were in fact paid on time, any debts that have been paid yet still show as outstanding or any old debts that should have been deleted. Old debts should stay on your report for seven years. Make sure you always pay your bills on time, even if it’s just the minimum payment.

Amount Of Debt
This is the second most important factor taken into consideration. Before applying, pay off as much of your debt as possible. That might mean waiting a little while longer for your mortgage but it could save you a lot of money.

Length Of History & Type Of Credit
If you have credit cards you don’t use, don’t be tempted to close them because believe it or not, that goes against you. Lenders like to see that you have lines of credit, the debt is nil or minimal and payments are on time – that looks better than simply not having a credit history at all. This is why if you have never had credit before in your life, you may find it difficult to get credit

New Credit You’re Requesting
If you’re thinking of taking a loan for a new car or anything like that, put it off until after you get your mortgage. If a lender can see you’re applying for a lot of credit, they might think you’re going to overstretch yourself. Or they might think you could do a bunk!