When you apply for a Mortgage the lender will check
a few things to decide if it’s a safe bet to lend you the
money. Here’s what ‘What Mortgage’ say on the
subject.
• Each lender had its own Credit Scoring System. Lenders
get the information from the credit agencies and apply their scoring
system to the data.
• It’s essential that you are registered on the Electoral
Roll at the address where you are applying from. A lot of credit
rejections are down to people not being registered at there current
addressed.
• They will look at your past credit history to see if
you have made repayments regularly and on time. This simple thing
can make up to 35% of your Credit Score.
• Living at the same address for three years or more will
help your credit score
• Working longer for one employer for a long period of
time is usually looked upon in a good light
• Also, staying with one bank is another good way of keeping
a credit score high. Lenders like people who stay with one financial
organisation.
• Having more than one unpaid CCJ on your history will
usually be a cause for rejection.
• Every time you request credit, there is a credit history
check, and these themselves leave ‘footprints’ on
your record. Too many of these can sometimes convince lenders
that you are out-stretching yourself, or that something is up.
• Because lenders use there own Credit Scoring system,
its likely that while one lender turns you down another will offer
you the money, even when they got the same information from the
credit agency. It is better however, to find out why a lender
has declined your application rather than trying somewhere else
straight away.
• If you fail someone’s Credit Scoring system, but
don’t have a bad credit history, you can appeal. If it’s
a case that you have been declined because you have moved too
frequently, or are not registered on the Electoral Roll the lender
may reconsider there decision.
