The majority of banks and building societies treat mortgages like a commoditised product, with automated decisions and a computer says yes or no business model (generally determined by your credit score).
For this reason your credit file and the credit score it produces, together with each lenders interpretation of that score, will in most cases determine whether or not you qualify for a mortgage. Ideally, we would recommend that you speak to a mortgage expert well in advance of any borrowing requirements (even if you are just remortgaging to improve the interest rate) as credit checks will always be carried out.
Missed or late payments on any credit commitments, disputes with utility or mobile phone companies, not being listed on the electoral register and taking out payday loans things which you may perceive as being relatively minor – can all causes problems when it comes to applying for a mortgage. Quality independent mortgage advice at an early stage will allow the advisor time to work together with you to improve your credit file where necessary. Simple things like registering to vote, ensuring that all addresses and accounts are correctly recorded, taking out a new credit card to build a credit history or even closing old cards which you no longer use can all have a positive impact on your credit score. Don’t despair, however, if you are still struggling to qualify for a mortgage.
There are now a growing number of mortgage lenders which take a more human approach and will take the time to fully assess your circumstances and the real risk of providing you with a mortgage. These are generally not high street lenders and many of these are not available direct to the public. If you are in any doubt whatsoever, please take expert mortgage advice as early as possible.
If you apply directly to a number of different lenders and are told no on each occasion, this can cause irreparable damage to your credit file and make it more difficult to get the mortgage that you need. It is our job as mortgage experts to fully assess your needs and use our in depth knowledge of the various lenders’ detailed requirements to find the correct match rather than a scatter gun approach to see who may be able to assist.
Local, face to face, independent mortgage advice can smooth the whole process and we would be delighted to help
