1) Check your credit report. You need to get a copy from all three credit reference agencies Experian, Callcredit and Equifax. Your credit report shows all the information held about your credit history including late payments to credit card companies and loans and mortgages that you have repaid. This is what a lender will use to make a decision on whether to give you a mortgage.
Get your free credit report here
2) Make sure you are on the electoral roll. Lenders use electoral roll information to confirm your address. Once you receive a copy of your report check the electoral roll information on it. If you have recently moved you may not appear as local authorities only update information every six months.
3) Make sure any CCJ information on your report is correct. If you paid a judgement within one month then it shouldnt appear on your report. If you have paid a CCJ over a longer period and have completed your payments make sure that it is shown on your credit report. If it isnt Experian suggests contacting the County Court to obtain a Certificate of Satisfaction.
4) If you are financially connected to other people who appear on your report you will be affected by their poor credit history. If your credit report shows a financial connection that is no longer correct, you can ask the credit reference agency to remove it.
5) If a person’s name appears on your report and you dont live with them or have any financial link a former occupant of your home, for example you can ask to be disassociated from them.
6) If any of your accounts or loans fell into arrears at any time, or you missed a payment this could end up on your credit file and could compromise your ability to get credit. You can ask for a Notice of Correction to be added to your files explaining why you fell into arrears. This information will be taken into account by any lender you apply to.
7) Every time you make an application for credit it will show up on your file. So if youve applied for several credit cards and get turned down, each one will appear on your file (it will now show if the application was successful or not). If youve made several applications for credit over a short period of time this can influence a lenders decision. So if you are refused credit by one lender find out why before making another application.
8) You may have problems getting credit if you havent applied for credit before. This may seem bizarre as you have no bad history, but you dont have any good history either and lenders like to see that you have a good track record of paying off credit. One way round this is to make a joint application with somebody who does have good credit history so you can start to establish your own history.
9) Make sure that lenders have not searched your report more than once during an application. If this has happened you should alert the credit reference agencies and asked to have the information removed.
10) Talk to a qualifed mortgage adviser if you think you need specialist help.
blackandwhite.co.uk was awarded What Mortgages Best Specialist Mortgage Broker in 2006. They have over 20 years experience in sourcing mortgage solutions for customers who have challenging credit profiles, such as those with credit arrears, CCJs and the self-employed who find it difficult to prove their income.
To arrange a FREE appointment with a blackandwhite.co.uk qualified mortgage adviser, or to simply apply online please visit their blackandwhite.co.uk.
