How to Improve your Chances of Getting a Mortgage

It may feel like you are taking on a mountainous challenge trying to get a mortgage, but it really isn’t as difficult as you think it might be and there are ways you can better your chances. If you want a good mortgage, you need to make yourself as attractive you possibly can. In the following post we cover some of the best ways you can improve your chances of securing a great mortgage deal.

Always Check Your Credit Report Before You Do Anything

It’s important that you can show potential lenders that you have the discipline necessary to pay your mortgage back. The many way that they assess this is by checking your credit score and credit report, to see what your repayment history is like. As you probably know, your credit report is a record of all accounts you’ve opened in the last six years and features mobile phones, mortgages, overdrafts, loans and credit cards.

In the past it used to cost a fee to request a credit report, but after the establishment of GDPR, they are available at no cost at all. It’s worth your time and effort looking into your credit report to check them all.

Fix Any Errors in Your Credit Score

Have a good look at your credit history in the report and if there are any mistakes, you are legally entitled to fix them. This normally involves either correcting the errors or at least voicing your feelings and say on them. Check first if it is just an error with one agency or more than one. Next, speak to the lender in question. If you get nowhere, take it to the Financial Ombudsman who may act on your behalf and push for the corrections to be made.

Don’t Expect All Lenders to Want to Offer You a Mortgage

Each lender has a different method for deciding whether they want to offer a mortgage to you or not. You will be accepted for a mortgage quickly if you meet their specific criteria. However, if you don’t, they are more likely to reject you. With people that fall somewhere between, this is a grey area and the scorecard the lender uses could involve many different factors, including:

  • Size of mortgage you’re interested in
  • Deposit you’ve saved
  • Income and employment status
  • Credit rating
  • Outgoings
  • Existing debt you have

Register to the Electoral Roll

It is possible to gain a good and even a perfect credit rating without being on the electoral roll. However, if you’re not on it, you are unlikely to get a mortgage. Electoral roll data is used by lenders when they perform identity checks to make sure you are who you claim to be and are currently residing where you claim to be. It’s a way to ensure you are not involved in money laundering.

Your credit history and file will highlight whether you are on the roll or not, but it’s also easy to check via your local city council.

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