Mortgage Calculator: Credit Expert Warns Against Checking Credit Report Before Applying For A Mortgage | Personal Finances | Finance


From the best rate to the type of mortgage that is right for the borrower, there are many things to consider when obtaining a mortgage. Some people may choose to use an online mortgage calculator. However, potential home buyers may want to consider their credit score as well. This is a number used by lenders to help determine if a borrower may qualify for a particular type of loan, including credit cards, loans, and mortgages.

It can be provided by credit reference agencies and is available to individuals.

Lenders can look at a person’s credit report to see the applicant’s credit history, before determining their own credit score.

This report is a credit report that has been used for the past six years, along with other relevant records.

These can include electoral rolls, court rulings, bankruptcies and credit applications.

James Jones, consumer manager at Experian, told “For many of us, applying for a mortgage is the most important application we’ve ever made, so it’s worth it. ‘be prepared.

“It means investing a little time in reviewing your credit score as early as possible in the process.

“This will give you time to iron out problems and, if necessary, increase your score to give you the best chance of getting a good mortgage deal. “

What advice does Experian have for loan applicants?

For those applying for a mortgage, they suggest that it might be a good idea to review their credit report with each of the three credit reference agencies as soon as possible – ideally at least six months before a purchase.

Research by Onepoll suggests that 74% of UK homeowners did not check their report before applying – which Experian says could mean their credit scores may not have been as good as possible before they applied. to apply.

And, the credit reference agency suggested it might have left some with a limited – and more expensive – choice of mortgages.

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How to make sure your credit health is in good shape when buying a property, according to Experian:

Check your credit report to make sure everything is correct and up to date.

Even minor deviations can affect a person’s credit rating.

See if you can strengthen your credit history and further improve your chances of being accepted for a mortgage

  • Register to vote at your current address
  • Make sure all past debts are correctly displayed as paid and closed
  • If you’ve had problems in the past for a good reason, like losing your job or being sick, send a “correction notice” to the three credit reference agencies to explain this to the requesting lenders.
  • If your credit report is still linked to that of an ex-partner, ask the agencies to break the link for you
  • Try to avoid applying for other credit products in the six months prior to your mortgage application
  • Avoid missing regular payments as these can damage your credit score
  • Pay off existing debts if you can. Depleted credit cards are bad news for credit scores

Check which mortgage products you are likely to be accepted for and how much you could borrow, based on lender criteria through an eligibility checker.

This check only leaves an indirect search on your credit report, so it has no impact on your credit score and allows you to see where you are based on your current credit status.

You can get as many mortgage quotes as you want without hurting your credit score.

However, be aware that as soon as you ask a lender to commit to a loan to you, including getting a mortgage “deal in principle”, it risks leaving a hard footprint that can affect subsequent credit scores. . So only do this once you’ve found the right deal for you.

Once you get your mortgage, sticking to your monthly payments will further boost your credit rating.

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