Recent research from Experian has found that some first time buyers are not fully aware of their financial situation and credit score. One in 10 did not prepare their finances before their mortgage application, and fewer than one in 10 have checked their credit report or score in the last six months.
Your credit score is a number that lenders will give your application and simply put, it helps lenders understand how desirable you are as a customer to them. It is based on your application details, your history of managing credit over the last six years – which you can see in your credit report, and the lenders’ own policy rules for the product you are applying for.
A low credit score can seriously impede your ability to get a mortgage. A high credit score can not only boost your chances of being approved for a mortgage, but also at a lower rate – meaning you pay less each month or you can borrow more. Therefore, it is vital that you review and understand your credit report, to ensure your details are correct and that there are no errors that could affect your credit rating.
It is best to do this before you even consider applying for a mortgage, so you have time to change and improve your score where possible. The Experian credit score acts as a guide and can give you a good picture of your financial situation and how you will be viewed by lenders – including how competitive a mortgage offer might be. If you apply for an unsuitable mortgage, you could be rejected.
A mortgage rejection will be recorded on your credit report and could have an impact on future mortgage applications.
Consult the Credit Expert
When looking to buy your first home, there are so many things to consider – getting your finances in order, improving your credit score, deciding where to live, finding a property, securing a mortgage – it can all seem daunting.
Credit agency, Experian – recently voted the UK’s most trusted credit monitoring services, lets you check your credit report online. It also gives you access to your Experian Credit Score and has an award-winning team of customer support agents (free to call), so that you can get personalised help on how to get
your credit report into the best shape before your mortgage application.
Experian CreditExpert has helped over 200,000 people increase their Experian Credit Score to excellent and gives you online hints and tips on how to protect and improve your credit rating. Experian experts provide advice on how to challenge errors in your report and give yourself the best possible chance of being accepted for credit. The service also protects CreditExpert members from identity fraud, sending you an
alert when there is a significant change to your credit report. For example, if someone applies for credit in your name, you will find out immediately and can take action. The service will even help you find a mortgage and other deals to suit your credit rating.
To become a member of Experian’s CreditExpert, go to experian.co.uk.
For more information about applying for a mortgage and getting on the property ladder, check out Experian’s Mortgage Matters guide at: