Mortgage Advice – Getting ‘mortgage fit’ with Birmingham’s Caboodle Finance

Friday, October 23rd, 2015

Applying for a mortgage can sometimes appear to be quite daunting, so here are a few tips that might make life easier and give you the best possible chance of getting an approval:

1. Check your Credit Report – You can register for a 30 day free trial with Experian (www.experian.co.uk) or Equifax (www.equifax.co.uk). Alternatively, register ‘free for life’ with Noddle (www.noddle.co.uk) to receive a copy of your report every month without charge!
2. Correct any errors on your report – If you spot anything wrong then contact the company involved and ask them to correct the error. If they refuse you may have to complain or take matters to the ombudsman but it’s better to get the matter resolved than ignore it…..it may be 6 years before it goes away!
3. Electoral Register – Make sure you are on the Electoral Role at your current address as this will improve your chances of getting a mortgage.
4. Manage your credit carefully – Try to keep well below the limit on credit cards, store cards or overdrafts. If you have old accounts you no longer use then close them. Some mortgage lenders may penalise you if they think you still have access to unused credit limits or facilities
5. Keep payments up to date – Just one missed or late payment on finance can be enough for some lenders to refuse a mortgage. Always set up a direct debit to pay the minimum payment in case you forget or go on holiday, you can always pay the full balance later.
6. Remove ‘Links’ or ‘Associations’ to any ex-partners – This is especially important if they’ve had credit problems in the past as through the ‘Link’ or ‘Association’ it could affect you.
7. Don’t take out any payday loans prior to applying for a mortgage – Some mortgage lenders will not provide a mortgage if they see that a payday loan has been used in the last 12 months, even if it is settled.

Mortgage Advice from Birmingham’s Caboodle Finance

If you are struggling to understand your credit report, then speak to a well qualified and professional broker such as Caboodle Finance. They will be able to review the report and guide you in the right direction. Don’t despair if you have some problems showing on the report as they may be able to find a lender willing to help when others have said no!

Also, if you have already been turned down by a lender then STOP and speak to a broker. Don’t be tempted to try the next lender on the high street as this may result in several searches (or “footprints”) being recorded on your credit file unnecessarily, which can then also have a negative impact on your credit rating.

Next month, we will look at the documents that will be required when making an application. In the meantime, if  you are in need of great mortgage advice, just call Birmingham’s Caboodle Finance today on 0121 308 9114 or click HERE to contact us by email and we will get back to you.