Something that can't be avoided but unfortunately is often overlooked are credit reports and scores. We've seen many instances where an unexpected poor score has hindered an application so we want to try and make sure that you don't come up against those same hurdles.
Firstly, you need to get a copy of your current report. If you don't already have access to it, you can sign up for a free trial at; www.checkmyfile.co.uk.
A few tips on getting and keeping a good score are;
Missed payments and defaults have a significant, negative impact on your score; setting up automatic payments will minimise the chances of either occurring.
Proving where you live is a quick, simple way of improving your score. You can do this even if you’re living with parents. It is vital that you do this as lenders use this data for identity checks. You can register here: www.gov.uk/register-to-vote.
It works in your favour to have, and reliably use, forms of credit. However, your credit utilisation needs to remain reasonably low to be deemed favourable. If possible, try to keep your credit utilisation to 25% (i.e. if you have a limit of £1000, try to only use £250).
We’ve known errors on credit reports to cause problems in obtaining mortgages. De-link yourself from any ex-partner that you applied for joint credit with in the past – any late payments or misdemeanour will impact your own credit score. If you find these early on then you’ll have a good chance at resolving these issues prior to any mortgage application.
Need Financial Planning Ltd (also trading as Need Mortgage Hub) is registered in England and Wales no. 10901658. Registered office, 123 High Street, Broadstairs, Kent, CT10 1NQ.
Authorised and regulated by the Financial Conduct Authority. Need Financial Planning Ltd is entered on the Financial Services Register https://register.fca.org.uk/ under reference 977136.
If you wish to register a complaint, please write to complaints@needfp.co.uk or telephone 01843 228800.
A summary of our internal complaints handling procedures for the reasonable and prompt handling of complaints is available on request and if you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service at www.financial-ombudsman.org.uk or by contacting them on 0800 0234 567.
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