When applying for a mortgage, having a good credit score can be a helpful factor, especially for first-time buyers in Newcastle. It can potentially lead to a higher chance of you getting accepted and being successful with your mortgage application.
Although this doesn’t mean you’ll be guaranteed accepted though, Lenders have their internal scoring system.
Each Lender has different criteria. We advise all our customers don’t spend your time worrying if you’ve failed with one Lender. There are plenty of other mortgage Lenders who might be willing to be more lenient. It’s down to our Mortgage Advisors in Newcastle to match you with the Lender that’s right for you, and their aim is the same thing as yours which is to find you the best deal available to you.
There are multiple credit reference agencies in the UK; the two we recommend is Experian and Equifax. In any case, it’s a good idea to look into many of these agencies as possible beforehand, to help give you a more specific idea of your credit score. Some of these agencies may include incorrect information.
Therefore, by checking with multiple agencies, you can be sure that this information is accurate.
Multiple credit searches can have adverse effects on your credit score. Be on guard of using price comparison websites which are known to be significant credit culprits searching on individuals. If you are applying for a mortgage soon, it may be wise to apply for additional credit afterward.
Whilst having some credit and paying it back is a good thing for your score in the long run. Lenders prefer to see you leverage your borrowings right before setting up a mortgage application.
Making sure you’re enlisted on the electoral roll increases your credit score. It indicates stability which lenders like. Ensure your names spelt correctly and that it’s your current address which is registered online. If you aren’t registered, it’s straightforward and comfortable enough to do this online.
If you max out your card each month, your score will get reduced. Using a credit card to keep on top of your payments each month is a preferred method. In any case, this will be a good indicator of your Lender that you are good at managing your money.
The main red flag in a lenders eyes is if you exceed an agreed card limit or overdraft. The reason lenders watch over this is because they want to know you’re able to take your finances responsibly.
Sometimes it can be perceived on your credit report that you are living in two places at the same time if providers have yet to get told that you have moved houses. It is pivotal that the addresses which you’re updating spelt correctly; If you have been residing in a flat, this can be a bit more complex as the address can get formatted in different ways.
If you no longer use individual store/credit cards, you should get into contact with the providers to close the account for extra security. In the short term, this could get seen as having a brief impact on your score as the Lender can’t tell who’s closing the account, e.g. you or the provider, but this will be for the better and an advantage to you in the long run.
This is an excellent thing to do to reduce your chance of becoming a victim of fraud if you don’t notice you have a lost a card which you may use regularly.
By having, family members or ex-partners connected to you financially could mean that they’re affecting your credit score unknowingly. However, you won’t be able to get the financial association removed if the account is still active though.
To remove the links between you and another individual, you should contact the reference agencies and make a request. The sooner you do this, the more beneficial it will be.
Many consumers feel that credit scoring is an unfair way of applications getting assessed. Lenders themselves are indifferent to this idea as it makes their overall job more manageable. It is cost-effective for them to operate this way and computers give more consistent outcomes.
On the other hand, some lenders do still do it the old-fashioned way but still apply the same rules about the number of defaults and CCJ’s they will allow.
When setting up your application, be sure your report is up to date to increase your chances of being accepted first time—the more in-depth information which your Specialist Mortgage Advisor has at hand, the better.