Credit Reports Explained

If you’re applying for a mortgage, it’s important that you understand your credit report and how it could affect your chances of approval.

Essentially, your credit report is just a database of information detailing your last six years’ worth of credit and how you’ve managed it. It includes all types of credit such as loans, credit cards, mobile phone contracts and some monthly insurance policies – as well as mortgage payments if applicable.

It’s usually a good idea to check your credit report before applying for a mortgage so you can deal with any discrepancies that might harm your chances of success.

But credit reports are just one aspect of a mortgage application. Mortgage affordability is also a key part of a lender’s decision on whether to agree a home loan – as is the amount of deposit you have.

Each lender has its own eligibility criteria and attitude to risk too. That’s why it’s best to speak to a mortgage broker before applying. This is because, if you apply to the wrong lender and get rejected, this will leave a mark on your credit files. Lots of rejected applications in a short space of time can actually damage your chances of getting a mortgage.

At My Mortgage Maker in Bristol, we will take time to assess your situation before contacting the right lender to give you the best chance of being approved.

Get in touch today and let’s get you moving.