Passing a credit score for a mortgage can be challenging for the majority of applicants looking for a mortgage. Mortgage Lenders’ credit scores are quite varied and usually, there are some which are more difficult to pass than others. If you fail a credit score then lenders can sometimes be quite reluctant in terms of informing you as to why you have failed the credit score. This can be a mixture of factors, as lenders can’t be sure precisely why your application was unsuccessful because it is not information that is in their hands.
This is often the best time to get into contact with a Mortgage Broker in Birmingham. If you can get a copy of your credit file, your Mortgage Advisor in Birmingham will go through it and try to work out which Lender it is that you have a better chance of passing with. The more deposit that a person is able to put down, the easier it is for them to pass their credit score for a mortgage.
Several things are already available for you so that you can improve your credit score, for example, If you have a credit card, you should use it regularly and make sure you pay the balance off in full each month. It would help if you were on the voter’s roll where you live, that helps. You can also close old bank accounts and credit and store cards that you are no longer using.
It isn’t a reason to give up if you fail one Lender’s credit score – there is always the chance that another Lender may accept you, but it is important to be careful about having too many hard credit footprints registered against you. Having too many credit searches can affect your credit score.
This is another way to boost your credit score watch our YouTube video “How To Improve Your Credit Score”.
All Lenders have different ways of calculating how much you can borrow. It’s possible that you could approach ten different lenders and the outcome is ten completely different answers. Some Lenders are more generous than others, for example, when an applicant is Self Employed in Birmingham. Some Mortgage Lenders can consider assessing 100% of an employee’s overtime and bonuses, whereas others don’t. Additionally, some lenders accept “unearned” income, such as tax credits, child benefits, and maintenance. So it’s a very varied chance of success when you’re looking into lenders.
A Mortgage Broker in Birmingham can approach several different lenders without the need for a credit check to perform an affordability assessment. If you are looking to buy a home, it’s a good idea to have an affordability assessment carried out before you start viewing properties to avoid potential disappointment further down the line.
Proving that you have maintained mortgage or rent payments in the past does not necessarily guarantee that you will pass a Lender’s affordability test.
All lenders have criteria that are individual to their own products hence, depending on your situations, some lenders are better than others. Lenders look to carve out niches for themselves to attract good quality mortgage borrowers who might not tick all the right boxes for their competitors, which gets them ahead in the market.
Some examples of why your application has been declined for being outside of policy are:
As an experienced Mortgage Brokers in Birmingham, we will use our past experiences and an extensive array of lender and criteria insight to recommend you the most suitable mortgage tailored to your circumstances. If your situation is outside the norm or something you may be dubious about it, then you should look for Mortgage Advice in Birmingham as being declined elsewhere may affect your chances of being accepted.