How you could get your mortgage approved

Men bringing boxes into house-300One of the key things to do when preparing for a mortgage application is tidying up your financial situation.

Your mortgage is likely to be the biggest financial commitment you’re ever going to make – so it’s going to be important to make sure that you find the best deal for your circumstances.

 

There’s plenty you can do to improve your credit score, such as making sure payments on credit cards and loans are all up to date. Also, know your budget. As soon as you decide to look for a property, scrutinise your last few months’ outgoings carefully to understand your spending habits. Are there things you could do without to finish each month with cash in the bank?

And as well as checking your outgoings, you should check your credit report, which includes a record of all your borrowing over the last six years. Ensure everything is accurate and up-to-date. From now until your application, try to appear like an ideal mortgage borrower – and demonstrate you can comfortably manage any outstanding credit commitments you have.

Because lenders have different past experiences and expectations, they take different factors into consideration and may score things differently. The Experian Credit Score is a guide to help you understand how a lender might score your credit worthiness – generally speaking, the higher your credit score, the better your chances of getting your mortgage and the deal you want.

It’s worth thinking about how much you can afford to borrow and later repay in the future, as your deposit is only part of the equation. A smaller deposit can mean a larger loan – which means lenders taking a closer look at your ability to repay. You could use an online mortgage calculator to work out what your likely repayments would be – if you play with the interest rate settings, you might be able to see if you’re able to afford repayments if rates rise by 1%, 2% or more.

For more helpful information on mortgages, visit www.experian.co.uk/mortgages, with useful hints, tips and features.

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10 thoughts on “How you could get your mortgage approved

  1. Sally

    Hi,
    I am trying to remortgage my house, I have an independent finance advisor who tried the Halifax and they refused me on principal but no footprint has been left as far as I am aware, I have been on experience and they have come up with several mortgage suppliers that apparently would consider me, I mentioned this to my mortgage advisor and she told me not to apply through experience as if I get refused my credit rating will be worse, I understand this I also understand that she may not work with all the mortgage lenders but I feel if the experian lenders know my credit score isn’t it wise that I should go to one of those or is my financial advisor right, she said that there to tempt me but does not men that it is going to be successful ? Please help, there are some really good rates on experian and I’m not sure that the advisor I have is thinking of me or her commission !

    Reply
    1. Neil Stone

      Hi Sally,

      Thanks for your question.

      The CreditMatcher service gives you a list of available deals to compare based on the information on your report and your requirements. You can then choose to apply to the lender you feel is best suited out of those suggested.

      Using this service you can potentially cut the number of applications you need to make, although it is not guaranteed that an application will be accepted if you use CreditMatcher, as this will always be up to the lender themselves.

      If you make an application after using Credit Matcher, the company you apply to will notify you of any credit search they need to conduct, this is usually covered in the terms and conditions.

      A search on your report does not show if you are accepted or not only that an application was made. We do suggest that you try to limit the number of applications you make to no more than 3 in a six month period as the searches do reduce your score in the short term.

      While I can’t advise on what is the best action to take in your current situation, I hope that you find this information about out CreditMatcher service helpful in making your decision.

      Kind Regards
      CreditExpert Neil

      Reply
  2. Louise

    Hi, I am currently looking at mortgages as a single buyer. I have one default still remaining on my credit record, will this affect my chances of getting a mortgage?

    Reply
    1. CreditExpert Neil

      Hi Louise, thanks for your question.
      While it shouldn’t prevent you from getting a mortgage, you may find that lenders may not be prepared to be offer the best deals while it is on your report.
      As the default gets older it will have less of an impact, six years from the date of the default it will be automatically removed from your report.
      Kind regards
      Neil

      Reply
  3. Craig

    Hi
    We want to move house and can def afford it. My credit score is 850 because I’ve had some debt in the past but no late payments or issues. I still have a 7k loan that I’m paying £75 a monthk and a credit card with about 2k on that I’m on £100 month. My wife has no debts and we currently make £600 mortgage payments as we’re on overpayment. Will my loan affect our deal as we can afford alot more a month in repayments and we only want to up size slightly.
    Thanks

    Reply
    1. CreditExpert Neil

      Hi Craig, most lenders will look at your existing commitments when considering you for a mortgage so may taking into account your loan. They will normally ask about your income during the application so they can work out affordability. It is always up to the lender themselves however so we wouldn’t be able to say if you would be accepted or not.
      Kind regards
      Neil

      Reply
  4. Rich

    Hi I’m thinking of applying for a mortgage with my wife my score is 631 hers is 800 but we have a good deposit though and good income what do you think our chances are or should I wait till my score improves cheers

    Reply
    1. CreditExpert Neil

      Hi Rich, if you are applying with your wife then the lender will look at both your information when considering your application. So your wife’s positive information could help your application, although it is always up to the lender themselves as to the decision they make. They will also be looking at income and deposit so these will also help. Kind regards Neil.

      Reply
  5. Jessica

    Hi,

    I’m wanting to buy my first home in the very near future. As a alone buyer, however my credit score is 569. I know its poor this was because of missed payments on a mobile phone while i was at university.
    I’m employed, good salary and have been oaying my bills on time since i got my job 2 years ago. I’m worried my low score will mean i am rejected. Resulting in my score taking another knock- when its already in a pretty bad state. I am thinking of thr line of a help to buy home so i am only applying for a 75% mortgage.

    Reply
    1. CreditExpert Neil

      Hi Jessica, recent late payments would be seen as negative on your credit report. As the late payments get older though they will not have as much of an impact.
      Keeping the accounts that you currently have up to date will help your score to improve in the meantime.
      While an application for credit can reduce your score in the short term, after six months it would no longer reduce the score, and there would be no record of whether the application was accepted or declined on your report.
      ultimately it is always up to the lender as to whether they accept or decline your application. You can find out more about getting your report in shape for a mortgage application here. Kind regards Neil.

      Reply

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