How to Improve Your Credit Score in Newcastle

When you apply for a mortgage, one of the key factors to achieving mortgage success is having a good credit score, especially if you are a first time buyer in Newcastle.

In having this, you will likely have a much higher chance of being accepted during your mortgage application stage. This does not guarantee it of course, nothing is ever guaranteed with mortgages, but it is certainly a positive.

Mortgage lenders will have their own internal scoring system, as well as different mortgage lending criteria. Don’t worry if you are not accepted with one lender, as you may still be accepted with another lender!

Matching you up with the most appropriate mortgage lender, is the job of our dedicated mortgage advisors in Newcastle. They’ll look to find you the best deal available to you, aiming to get their recommendation right first time.

There are a lot of different credit reference agencies in the UK, with the two most credible and frequently used being Experian and Equifax. It’s always handy to check a few different agencies ahead of your process, just in case any have wrong information.

Keep Credit Searches to a Reasonable Amount

When you apply for a mortgage, you will be subject to a credit search. Mortgage lenders can either do a hard search (more in-depth) or a soft search, in order to learn more about you.

You may also be subject to searches on price comparison sites too. Multiple credit searches, especially if it is a hard search, can negatively affect your chance of obtaining a mortgage.

Always be wary of the sites you are using and if you are looking to apply for additional credit, perhaps wait until you have completed your mortgage before you look to do something like that.

Although having some credit to your name and paying it back can be a positive for you and your credit score in the long run, it may be best to cancel any unused credit cards. This will streamline your finances, and prevent the amount of credit you have from going against you.

Check You Are on the Voters’ Roll

Making sure that your name is on the electoral roll will give a positive boost to your credit score, as it shows a level of personal stability, which mortgage lenders will look at favourably.

You should always make sure that your name is spelled correctly and that the correct address is listed. If you are not currently registered on the electoral roll, it’s very quick and easy to do online.

Know Your Maximum Limit

Many people will prefer to use a credit card and it can be a good way to manage your finances. That being said, you want to be wary of maxing out. If you are maxing out your credit card each month, your credit score will lower.

If you’re not using too much and your credit balance is at a higher amount, it may seem logical that it would work favourably, because you’re not spending as much. On the contrary, however, as it may appear to a mortgage lender than you are unable to pay that full amount back.

They’ll also be keeping their eye out for exceeding agreed card limits or going into overdraft, as once again, the mortgage lender will want to see that you are able to maintain your finances responsibly.

Check Your Address History is Keyed Correctly

If you have neglected to update your information everywhere, it may come across to a mortgage lender like you are living in two places at once. You must always make sure your address is up to date everywhere.

Always make sure that your address is spelled correctly and has the full address listed. It can be difficult if you have previously lived in a flat, due to the address often being formatted in various different ways.

Keep Up to Date with Credit Accounts

If you have any older credit cards or store cards that you are no longer using, it is worth getting in touch with the providers of those and close your accounts, for extra security.

Short term, this may have a small impact on your credit score, as a mortgage lender will not be able to see who closed the account. In their eyes, it could be you, but it could also be the provider, the latter being a possible concern initially.

In the long term, this will be much more beneficial for you, as not only does it help to streamline your finances, but it can also help prevent you from being a victim of fraud, if you were to perhaps lose a card that you had forgotten you had or did not regularly use.

Look Out for Financial Links to Others

Being linked financially to family members or ex-partners can also have an affect on your credit score. If the other party were to miss payments, your credit score would be affected, due to the financial ties you have.

You may not be able to remove the financial association if the account is still active. To remove a financial link between you and someone else, contact the reference agencies and make a request for them to do so.

The sooner you remove your financial ties to someone, the better your credit score will be.

Lot’s of customers may feel that credit scoring is an unfair way to assess an application, though from a mortgage lenders perspective, it makes their life a lot easier and more manageable. It is cost effective and provides more consistent outcomes.

When you are setting up your application as a first time buyer in Newcastle, always make sure that your credit report is up to date, in order to increase your chances of being accepted first time.

The more in-depth information that your specialist mortgage advisor in Newcastle has at hand, the more efficient your process will be.

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