First Time Buyers – Leeds Mortgage Advisor Free Advice 2020
March 2020 – by Darren Martin CefA CeMAP
One of the main factors which will determine your ability to obtain a mortgage is, of course, your credit score. Not only is your actual credit score a deciding component of the mortgage application, but the importance of disclosing all your credit commitments at the point of application cannot be over-emphasised.
All credit facilities and commitments will be thoroughly checked by the lender. Lenders have access to, and use, multiple credit reference bureaus to check your current and past credit history. If you either fail or forget to disclose these then this may have an adverse effect on your borrowing capacity, or the lender could even decline the application.
Mortgage Advice for first time buyers, I offer no obligation, no charge initial telephone consultation for residents of Barnsley, Blackburn, Bradford, Doncaster, Halifax, Harrogate, Huddersfield, Leeds, Leicester, Oldham, Rotherham, Stockport, Worksop and York and throughout West Yorkshire. Call FREE on 08000 141948.
Mortgage Advisor Leeds Bradford and Bingley – Credit Explained
The types of credit commitments which must be disclosed include the following: credit cards, personal loans, hire purchase agreements, car finance, student loans, interest free credit, store cards, catalogues, mobile-phone and tablet device contracts. Things like bikes and sofas on finance also need to be declared. Even credit facilities such as credit cards with a zero balance need to be declared to the lender.
What Is Adverse Credit When Applying for a First Time Mortgage?
– It’s always a good idea to obtain an up to date copy of your credit file before commencing the mortgage process. This will allow you to identify any current or historical credit issues. As well as credit commitments, lenders will also want to be confident that you are responsible in utilising the credit available to you and you are comfortable maintain the monthly payments. Although adverse credit will have an impact, it’s not the end of the world. Adverse credit includes such things as CCJ’s (County Court Judgements), Defaults, Late or missed payments, IVA’s, and Bankruptcy. Whilst adverse credit doesn’t mean you can’t get a mortgage, it could mean that only specialist lenders may be available to you. As an experienced mortgage broker with many years of dealing with all sorts of client scenarios, I will be able to give you the best advice and secure the most cost effective option for you.
How To Improve A Low Credit Score in the Mortage Lending Process
If your credit score is low, there are a number of ways you can improve it. Where you have an unused credit facility, it may be good practice to close the account – for example a credit card that you no longer use. If you have defaults or CCJ’s, repaying any outstanding balance will certainly help to boost your credit score, although lenders will take even repaid CCJ’s and defaults into account for a certain period.
