What affects your credit score

In our previous blog we have explained how mortgage lenders use a formula to calculate a score that represents your credit history and helps to indicate what type of borrower you are. The result they come up with can affect the outcome of your mortgage application.

Making sure the information contained on your credit report is accurate and working to improve your score is essential to getting the best mortgage or loan. In this blog we have listed some of the things that can adversely affect your credit score. 

  • Not being on the Voters Roll. Lenders check the roll as a precaution against fraud, to make sure that you live where you say you do. If lenders are unable to confirm your address history from the voters roll or other sources they are unlikely to consider you for a loan.
  • Frequent changes of address as this points to a lack of stability.
  • County Court Judgements.& Bankruptcy Orders stay on your record for six years.
  • Missed or late payments on credit cards, mobile phone contracts, energy bills or other commitments.
  • Too many credit searches in a short space of time. Whilst most people understand that applications for a credit card, mortgage or loan will result in a credit search, applications for contract mobile phones and house or car insurance that are paid monthly are also credit agreements and will result in a credit search. These searches will remain on file for a year.

Your home may be repossessed if you do not keep up repayments on your mortgage. You may have to pay an early repayment charge to your existing lender if you remortgage.


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