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What can harm your credit score?

Posted on Thursday 15th December, 2016

We want our clients to be as “mortgage ready” as they can be. But did you know that one of the most important things to check before thinking about applying for a mortgage is your credit score? A poor credit rating can greatly affect your ability to get a mortgage, along with other factors such as deposit and income.
Leading up to the mortgage process, there are things that you can do and check to increase your chances of having a good score with the lenders. It is useful to initially obtain a credit report from services such as Experian or Equifax, to give you a better idea on your current situation. This report will be based on several key factors. Here are some of the most important:
Home sense
If you have lived at the same address for at least a year, this can improve your credit score and increase your chances of borrowing. Even better, if you own your own home already, this can often be a positive in the eyes of lenders.
Roll up to vote
Not being on the electoral register is one of the most common ways to get caught out when looking at your credit score. Not registering to vote, being registered at an old address, or the wrong details being on the electoral roll can mean you are refused credit.
No credit history
This may sound obvious, but not having a credit history could be as detrimental as having a slightly negative one. This is because lenders will not have a credit history on which to judge their lending decision. It is worth checking that you are creating a good history of repaying credit, whether through credit commitments or household bills.
General stability is always advisable when making yourself “mortgage ready”. Being employed is often an advantage, although there are still plenty of options for those who are self-employed. Having the same bank account for several years also has a positive effect on your credit rating.
So what can I do if I have a poor credit rating?
If you do have a poor credit rating, then your route to a mortgage is far from completely closed. There are in fact some specialist lenders out there that can help those with adverse credit looking to borrow. They will look at your case individually, not always on an automated credit score, which can be especially frustrating if your poor rating is down to a missed phone bill or two. If you would like to find out more, or talk about applying for a mortgage, contact:

Terry Davis

0800 970 1795



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