YesCanDo Money’s “DON’TS” in the run up to getting your first mortgage
When it comes to getting a mortgage, it’s best to have a clean slate but we understand that this isn’t always the case. Most mortgage lenders look back at your past 6 years credit history therefore you want to make your credit file look as clean and strong as possible.
1. NO Defaults and late payments:
Defaults or late payments indicate to the mortgage lender that you either cannot afford your current lifestyle or you are not organised with your money. Most late payments are just human error, so make sure every single payment is made on time. If possible, make sure you have a direct debit set up for all your monthly payments.
2. NO to Pay Day Loans:
They may seem a quick easy fix but mortgage lenders HATE pay day loans! We have had a customer in the past be rejected by a certain mortgage lender by only having 1 pay day loan. It says to the mortgage lenders that you are struggling to make ends meet with you money. Say no to any type of pay day loan!
3. NO to Gambling:
You don’t have to be gambling big time to cause issues when getting a mortgage. The odd weekend football bet can worry a lot of mortgage lenders. We would suggest to stop gambling up to 3 months before getting a mortgage.
Your Overall Credit Score and Debt
When it comes to searching your credit history, the mortgage lenders will look at your credit rating. There are lots of ways to check your credit score from Experian to ClearScore. Work on getting your credit score as high as possible ready for applying for a mortgage.
Debt doesn’t mean you’ll get rejected for a mortgage, but it does counteract your affordability and bring the amount you can borrow down. Therefore you want to try and pay off as much of your debt as possible before getting a mortgage.
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