As residential mortgage brokers, we’re used to working with clients who may struggle to get a loan on the high street because they do not fit traditional criteria. If you think this may happen to you, don’t panic. Follow our top tips for how to make yourself more desirable to lenders and then get in touch with our team.
1. Check Your Credit Score
Your credit score is a three-digit number which shows how likely you are to be accepted for credit. This is based on your credit report which reveals how you’ve managed credit in the past. Therefore, checking it before you apply for a loan may indicate how likely you are to be accepted for a mortgage.
Once upon a time you had to pay to view your credit report, but you can now do it for free yourself online where you will be presented with your report, score, and any ways you can improve.
When you do this, if the information that is returned to you is wrong, make sure to correct the errors asap. Contact the lender or organisation in question and request they update this or you could be unduly penalised for a computer error.
2. Register to Vote
On the surface, voting may not seem to relate to buying a house, but it has more of an influence than you may think. For some lenders, it is a deal-breaker.
Why? Well, lenders use the electoral roll to help run identity checks as part of their approval process. Without this, the process becomes a lot more difficult.
If you’re not on it, register online for free. Alternatively, if you’re not eligible to vote (if you’re not a UK or EU national or example), put a notice of correction on your file to say you have other proof of address and ID.
3. De-Link Yourself from Ex-Partners
If you’ve broken up with an ex-partner, you may not have seen them in months or even years, however they could very much be a big part in your life still without you knowing. If you previously applied for joint credit together, for example a bank account, any late payments or misdemeanours they have will reflect on you.
To de-link, simply write to the credit agency in question and ask for a notice of ‘disassociation’.
The same process should be done for any ex-housemates too, or your university days could come back to haunt you.
4. Shut Down Old and Inactive Accounts
Okay, so an old and inactive account cannot technically harm your odds of being accepted for a mortgage. However, it can leave you open to fraud risks and mean outdated personal information is taken into account.
On the flip-side, if you’ve had your current accounts for a long time, this is viewed as a positive by a mortgage lender as it shows you have long-lasting stable credit relationships.
5. Pay Your Bills on Time
This may sound obvious, but we still must reiterate the importance of paying your bills on time. Any missed payments will be marked on your credit file and will therefore affect your credit score and the likelihood of you getting approved for a mortgage. A direct debit will ensure no payments are missed in future.
Don’t Meet Standard Criteria? No Problem
If you’ve defaulted on past loans or have CCJs, following the above steps will help improve your desirability to lenders. Get in touch with our experienced and friendly team of brokers to see how much you could borrow today.
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