Each lender has a different playing field when it comes to credit scoring. You may find it easy to pass with some lenders and hard with others. If you fail to approve a credit score, lenders can sometimes be unhelpful and not tell you the exact reason why you failed.
It might be down to a mixture of things, and they can’t find exactly why your application was unsuccessful.
It is the place where your specialist Mortgage Broker in Cardiff offers you a helping hand. If you can obtain a copy of your credit file, come and speak to one of our Mortgage Advisors in Cardiff and they will try their best to match you with a lender that you have a high chance of passing through.
Also, offering a deposit of more than the minimum of 5% will increase the chances of you succeeding a “good” credit score for a mortgage.
If you have a credit card, using it regularly and paying it off every month is a great way to prove that you can keep on top of payments. Registering on the voter’s roll can also really help and is easy to set up.
If you also have any old bank accounts or store cards that are no longer in use, you should get them closed down as this looks better from the lenders’ viewpoint.
If you have failed a lenders’ credit score, don’t worry! There are lots of different lenders out there, all with additional criteria. You should eventually find one that you will fit perfectly, and there are many ways to improve your credit score, it all takes time and good patience.
On the other hand, please don’t apply for too many hard credit checks as the more you do, the worse effect it can have on your file. Lenders can see you are failing over and over, possibly removing all of your chances of passing altogether.
As well as having their unique lending criteria, each lender will also have their way of how working how much you can borrow. It is more than usual to approach ten different lenders and receive ten completely different answers. Some will be lenient, and some will be strict.
For example, if you are Self Employed in Cardiff, the lender may be more generous. You will find that some lenders will assess 100% of an employee’s overtime and bonuses and others may not, it depends on the lender. Others may allow you to pass with “unearned” income such as tax credits, child benefits, and maintenance.
As a trusted Mortgage Broker in Cardiff, we have a large panel of lenders. We can approach any of these for you, without the need for a credit check, to perform an affordability assessment for you.
If so, to get ahead of the game, you could have an affordability assessment carried out before you start searching for properties. Here’s what would show you what sort of financial situation you are in before you begin getting credit checks.
Providing evidence that you have kept on top of your mortgage and rent payments does not guarantee that you will pass a lender’s own affordability test.
Each lender has their own strict lending criteria. Some are better than others, depending on your personal and financial situation. Lenders want to attract good quality borrowers who may not fit their competitor’s criteria. They engage them by carving out niches for themselves.
Here are some reasons why your mortgage application could be denied or has been getting denied for being outside of policy:
If you come to us, your mortgage broker in Cardiff, we can find the best lender for you based on your situation. Even if you think your problem is a little complicated, don’t hesitate to get in touch.
We have dealt with thousands of complex cases, and we can’t wait to help you through yours. With our help at Cardiffmoneyman combined with a perfectly matched lender, you will be able to put down a deposit for a mortgage in no time. Get in touch with a mortgage advisor in Cardiff and receive a free mortgage consultation today.
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