Improving Your Credit Score Before Applying for a Mortgage

Your credit history is something that will be looked into if you are applying for a mortgage on a property. The score is calculated using a wide range of factors relating to your financial situation, with lenders looking to see how much of a risk you are before agreeing to a loan.

Successfully applying for a mortgage is more difficult if you have a bad credit score, but it is a situation you can work through with some careful and considered work to change your credit score in advance of a mortgage application.

Black Mark of CCJ b If you have a County Court Judgment against your file, or a bankruptcy notice you will be severely limited in your borrowing options. Usually you canbt apply for any form of borrowing for at least 12 months after bankruptcy.

Careful with Applications b Every time you apply for a loan or credit, no matter how small, it will be marked on your credit history. Being declined knocks your score even further, so be careful with the amount of applications you make.

Electoral Register b Ensure you are signed up on the electoral role for your current address, as this is a big positive on your credit rating.

Look for Mistakes b Check your credit file and ensure that all debts are registered to your current address, and that there are no inaccuracies present.

Build Trust b It might take some time but it is important to always pay back a loan or credit card on time, every time. Over the course of a 6-month period this will improve your credit score.

Consistency b A lender likes those with stability, so if you have a history of being in full-time employment or have stayed at the same address for a length of time, it shows you can be trusted.

For more advice and assistance with mortgage applications, contact Central Mortgages today.