Buying your first home has been out of reach for many people over the last 5-7 years. Now the dream has become a possibility if not quite a reality for many people, especially over the last 12-18 months.
Easier but not less complicated.
There is a considerable amount of information gathering at the beginning of the mortgage approval process. However, we have found that by helping you gather it all together at the start of proceedings, and to understand why it is needed, actually makes the whole experience smoother and somewhat less stressful.
5 Major Factors you need to consider and know before applying for a mortgage.
2: Do you know your Credit History/Profile?
We’ve probably all heard of a “Credit Score” but have you heard of a credit profile?
The lenders will use either one of, or a combination of the credit reference agencies to obtain the data known as your “Credit Profile.”
“Equifax” & “Experian” will offer to divulge to you, your personal profile and give you a score free of charge. It remains free for the first month then they charge a monthly subscription. “Call Credit” or “Noddle,” as it is known on the web, is free of charge for life at the time of writing.
Equifax score is out of 500
Experian score is out of 999
Call Credit score is out of 5
Although these scores can give you an indication of what sort of view a lender will take when assessing an application, it does not necessarily mean you will be passed or declined.
The profile, is a history of your last 6 years’ worth of financial activities and associations. With details of whether your current and previous loans having been maintained correctly and payments paid on time etc. This includes utility contracts, some broadband contracts, mobile phone contracts, hire purchase, overdrafts, credit and store cards etc. Additionally it will also hold all the information on any defaults, arrears, CCJ’s (County Court Judgments), IVA’s (Individual Voluntary Arrangements) and bankruptcies.
Each lender will have their very own internal scoring system based on that particular lender’s criteria (rules). It is all very secretive on how each system is put together but with our experience we have picked up a few key indicators that can have influence your score.
Nearly all the lenders have an automated scoring system, yet there are a few exceptions to this rule of thumb. This handful of lenders will still take your data from a credit profile, via one of the credit reference agencies mentioned above, and then assesses your profile manually, i.e. a human makes the decision.
In order to assess which lender’s criteria best suits your profile and before making a recommendation on which path to take, we ask that you register with one of the credit reference agencies and allow us to assess your profile with you, then we can have much more confidence in getting the right outcome for you from the beginning.
So as you can see, there is quite a considerably bit of information gathering and various aspects to considers before you even decide on what product you are going to need let alone what lender to apply to and all before you even start the mortgage approval process.
Rest assured that you are in safe hands with an experienced, reliable firm who have your best interest at the very heart of everything we do. We will hold your hand through the whole process and make the experience almost bearable.
If you would like the burden halved and be allowed to focus on the exciting elements of buying a home then get in touch with me to have a chat and see what can be achieved, please feel free to contact me.
Daniel Hulme CeMAP
07743 357 419
This information is given as a guide. Lenders affordability calculations require proof of income and criteria can vary. All aspects of an individual’s circumstances will be considered before making a recommendation.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
We normally charge a fee for mortgage advice, however this will be dependent on your circumstances. Our typical fee is £350 payable upon receipt of offer of mortgage.
J&M Green Mortgage Services Ltd is an appointed representative of Personal Touch Financial Services Ltd which is authorised and regulated by the Financial Conduct Authority