One of the most important things that people forget to consider when obtaining a mortgage is what’s on their credit profile. This information will help mortgage lenders decide whether to lend to you and how much they will let you borrow. It’s also a way for lenders to establish whether you will be a risk to them or not.

See below our credit profile dos and don’ts to help you improve your chances of obtaining a mortgage;

Do

  • Register on the electoral roll.
  • Ensure that you maintain the repayments on your credit commitments.
  • Reduce the amount of debt that you owe.
  • Close down old accounts, you may not use the account but the lender will still look at the amount of available credit you have.

Don’t

  • Open a lot of new credit accounts at the same time, or immediately before applying for a new mortgage.
  • Miss payments.
  • Just make the minimum payment on your credit agreement – overpay if you can.
  • Overspend on your available credit.

 

Monitor your credit rating

Your credit file lists your past credit cards, loans, overdrafts, mortgages and some utility accounts, for accounts that were open over the past six years. Many of the lenders use the following credit agencies:

Equifax
Credit Expert
Callcredit

You can sign up to a free trial with Credit Experian and Equifax, but they do charge after a set period of time.

There are also free to use websites such as Noddle (Callcredit) and Clearscore (Equifax) which do not charge you to view your credit profile.

But don’t be too hung up on your score, its more the makeup of your profile that counts!

 

Would you like to know more? Get in touch with one of our advisers for more information!

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