A credit score is a numerical expression based on a level analysis of a person’s credit files to represent an individual’s creditworthiness. Lenders use this numerical expression to determine your affordability for a mortgage, loan, credit card, and the rest. Although different lenders have different credit scoring criteria, the credit score listed on your file will usually range from 300-800+.
???? 300-580 – This is an example of a poor credit score, and having a credit score like this may minimise your chances of being accepted by a lender.
???? 580-670 – A score like this is deemed fair, and some lenders may be more lenient with you when you have a score alike.
???? 670-740 – This is a good score, and your odds of being accepted will be high if you have this score on your credit file. We tend to find that this is usually the average credit score range.
???? 740-800 – This score is excellent. A score as good as this will put your chances even higher of being accepted.
???? 800+ – If you have a score that’s 800+, that is a perfect credit score. Your chances of being accepted are well above average; well done!
If you have a credit score above 670, a lender will likely see no problem lending to you. On the other hand, if your score is less than 670, you may struggle to get the competitive deals that other applicant’s with a higher score are accessing.
Our team of Specialist Mortgage Advisors in London have dealt with an extensive array of cases daily. It’s often the case that mortgage applicants come to us after being declined by their bank due to a low credit score or something similar. Their job is to step in and assist wherever they can to get your application mortgage ready.
There are various reasons why you could have a low credit score. The most common understanding that we come across is that the applicant is the subject of a county court judgement (also known as a CCJ). If you fail to repay a loan/borrowed money, you will likely get a CCJ.
A CCJ can leave a harmful impact on your credit file for up to six years or more. We strongly advise that you make sure that you pay off your debt before applying for credit. It will surely pop up on your file, and the lender will start asking questions.
Neglecting to stick to credit agreements can be bad too. Anything like failing to keep up with a Mobile Phone contract can cause damage to your file. It’s the little things like this that can cause substantial damage. For example, dipping into your maximum arranged overdraft every month could cause a long term adverse effect. Even using loads of price comparison websites can sometimes affect your score.
These are just a few things that could negatively impact your credit rating, and there are lots of other reasons why you could have bad credit. However, our mortgage advisors in London job is to help you develop your score, so you get the chance to move into your dream property!
There are multiple ways to improve your score. But the most crucial part is not to give up just because you have a low score because it’s still possible to secure a mortgage in some cases.
Trying to improve your credit score can be a challenging task, that’s why we hope that this handy guide can give you some indication on how to improve it. We must inform you that every lender has there very own lending criteria, so your score may impact what deals you can access.
Additionally, it also means that just because you have an excellent score doesn’t mean that you’ll match every deal. It’s sometimes down to personal circumstances. It’s all up to your lender and their criteria.
Every time you go directly to a lender and their in-house mortgage advisor puts you through for a deal, they will perform a soft or hard credit search on you, and this search will leave an imprint on your credit file. If your application gets declined for any reason, the credit search performed could harm your credit score. Multiple searches may lower your chances of getting accepted for a mortgage in the future.
Applying for credit can sometimes ricochet on you, especially if you don’t have a reason for doing so. If you can pay back the credit that you’ve borrowed, it may look good on your application. However, flip the situation on its head, and your credit score could end up in trouble if you fail to meet the credit payment deadline.
During your mortgage application, we strongly advise that you hold off applying for credit. In some cases, you may be able to get away with it, but lenders may believe that you are struggling for money in other scenarios, they could think that you are putting it towards your deposit or using it to aid your mortgage payments.
Here at Cambridgemoneyman, we aim to get it right the first time, which means that we will take a look at your credit score and only approach lenders that hold criteria that we know you’ll pass.
Here’s an easy way to improve your credit score; make sure that you get registered on the voter’s/electoral roll. Being registered on the roll shows that you are who you say you are. All you need to do is go to the government’s electoral roll page, and it’s easy to get registered from there. Additionally, this could be a great way to boost your score.
You must provide accurate information when registering on the voter’s/electoral roll, ensuring that everything gets filled out correctly. You will need to use your current living address, not your previous address.
We always recommend checking that all of your accounts and details get linked with your current address during the mortgage application process. Additionally, this won’t affect you as much if you are a First Time Buyer in London and this is your first application.
However, if you are Moving Home in London from rented accommodation and you still have your parents address linked with any of your accounts, your lender will pick up on it straight away. That’s why it’s essential to change your addresses and make sure that it’s up-to-date before applying. Being linked to the wrong address could impact your credit score.
If you go down the broker route, your Mortgage Advisor in London will help you out with this step. They will make sure that everything is updated with you to ensure that you have the best chance possible of being accepted for a mortgage.
Maxing out your credit card(s) each month will heavily impact your credit score. Your lender will like it if you can pay off your credit card balance each month as it shows that you can manage your money.
If a lender can see that you are exceeding credit card limits and always dipping into your overdraft, they may think that you don’t take your finances seriously.
If you are still financially linked to an ex-partner or family member, your credit score could be getting harmed without you even knowing. If the account is still active and live, you won’t be able to remove your links. The only way to remove your connection is to get in touch with the credit reference agencies and make a request.
Depending on the lender and how strict their lending criteria is, they may be lenient and allow some wiggle room. If there are some personal reasons involved, your lender may be considerate and factor them into your application, and it’s entirely up to them what they do.
A Mortgage Broker in London like us will always be transparent with you and factor in every bit of detail. Even if you have a score on the lower end of the spectrum, our hardworking team of Mortgage Advisors in London are determined to secure you a deal that will suit you.
We have access to specialist mortgage deals through our vast panel of lenders; we are sure that we will find one that matches your mortgage needs. If you need further assistance or Credit Score Mortgage Advice in London, feel free to get in touch with our team.
It goes without saying that it can be costly to buy a new home. There are various costs that can add up, as well as different options every step of the way that you can choose from.
If you’re a first time buyer who is looking for mortgage advice in London, you’ve come to the right place, as this piece will explain many of the costs typically associated with buying a new home.
Only those that are selling a property are required to pay an estate agent. It should be noted that these fees can vary drastically between different estate agents. Often, these fees can be negotiated, particularly when there is a lack of properties available for sale.
The cost of surveys can vary depending on requirements, however, your mortgage advisor will be able to recommend the most suitable option for you.
Mortgage lenders will inform you of the value of the property you are considering buying. This enables you to determine whether it is worth the cost. This can cost upwards of £300, or may even be offered for free by your lender.
It is also possible to request a more detailed Home Buyer’s Report, which often costs in excess of £1000 for the most in-depth surveys.
As a guide, mortgages with low-interest rates are typically those with the highest fees. Mortgage arrangement fees can vary between being free, or even costing upwards of £3000.
Mortgage advisors in London are in the best position to explain the most cost-effective products that align with your requirements, working out the total amount to pay throughout the product term, including fees.
It is usually possible to add arrangement fees to the mortgage. In this case, it will prevent a costly one-off payment; however, there will be interest on the fees, which end up costing significantly more over the mortgage term.
It is essential to have a solicitor take care of the legal aspects of buying your home. Your solicitor needs to be on ‘panel’ for the lenders you require, so make sure your choice facilitates this. Your mortgage advisor in London will be able to guide you throughout this process.
It’s also important to make sure that the quotes you consider for solicitors’ fees include local searches and VAT, preventing any unexpected costs from arising.
Stamp duty is a tax that is paid to the Government for some property purchases. This is paid to the solicitor upon completion, as they will pay the government for you.
For more information, visit: https://www.gov.uk/stamp-duty-land-tax/
When searching for a mortgage broker in London, it’s important to understand the applicable fees.
The majority of mortgage brokers in London charge fees, with the sum of money owed often being linked to the amount the lender pays the broker for carrying out work on their behalf. Many brokers only charge fees when they successfully get a formal mortgage offer for you.
Reviews are a great way to see other peoples’ experiences with a mortgage broker in London, which can help you to make your decision. As an example, if you find a mortgage broker in London with great reviews, this can give you confidence when choosing to work with them.
While some people choose to hire a van and move their own furniture and belongings into the new home, removal companies can take the stress out of this process.
While it does cost to have a removal company take care of this on your behalf, they can speed up moving and enable you to focus on other things, making your move more enjoyable!
This piece should have given you plenty of useful information, helping you to understand the basics of mortgage advice in London and setting you on the path to getting started.
Remortgaging basically involves moving your existing mortgage to a new provider or switching to a different arrangement with your current lender.
It’s considered an effective approach to saving money on your scheduled mortgage repayments with competitive deals. If you’re struggling to decide whether it’s worth it to remortgage your property in London or not, you’re at the right place.
We’re here to help you make the right choice as your remortgage advisor in London. Here’s our list of top 5 reasons why you should consider remortgaging your property:
One of the best reasons for you to move to a new deal is if your current deal with a low fixed rate is about to end. You need to get expert mortgage advice from a mortgage broker in London at least three months before your existing deal expires and you have to pay a higher rate for it. This will allow you to explore various options and choose the one that fits you the best.
At the start of your new mortgage deal, you mostly get a discounted introductory deal. It moves to your provider’s standard rate after 2 to 5 years.
If you believe that your new fixed mortgage rate is costing you too much, it’s the ideal time to switch to a deal that offers you a lower interest rate. Also, if you have a fixed rate deal with your current lender, you’ll be required to pay an early repayment charge or exit fee to repay your current mortgage.
Therefore, take a look at the total cost in comparison to the savings with a new mortgage deal before making a switch. If the difference is negligible, it might not be worth your while.
Your mortgage lender might agree to lend you more money for a myriad of factors, such as buying property to let out, home renovations, going traveling, paying off debts, and even buying a new car. It can be a cost-efficient solution to remortgage your property for borrowing more money.
If your present mortgage lender in London has refused to lend you more money or is offering a deal that doesn’t suit you, you can raise more money at lower rates by moving to a new mortgage provider.
It’s important to note that your mortgage provider will ask you the reason you need to borrow additional money. Don’t forget to take all the fees into account to ensure that this is the cheaper way of borrowing money.
Sometimes changing circumstances, such as parting ways from your partner, can be the reason you want to make changes to your mortgage deal.
If you are thinking about selling your home, try remortgaging your property instead. Your lender will permit you to buy out your former partner with the money raised by remortgaging. However, it’s significant to bear in mind your current and new mortgage costs.
If you’ve remortgaged your property in London, you might be familiar with the recent upsurge in the tracker rate mortgage of people who had it connected with the Bank of England after the bank hiked their base rate by 0.25%. Many people had to face their mortgage rate escalate and, in turn, their payments increase.
If you’re worried about the rates going up again in the future, it’s a wise decision to analyze your current mortgage deal and switch to a new deal by remortgaging.
We highly recommend you to reach out to your mortgage advisor to get all the gains and losses of your remortgaging arrangement evaluated before making the final choice. If you’re looking for a remortgage advisor in London, we can help to make the process smooth and hassle-free for you.
We hope this article will serve as your quick guide to remortgage in London and help you decide what works the best for you!
We all end up with a reduced income after we retire in London, so that is why Lenders usually want the mortgage to getting repaid before your stated retirement age. They will consider lending past state retirement age in some circumstances, but only if the job you do is relatively non-manual and as such it would be reasonable for you to carry on working to a later age.
Evelyn was in her late forties when she applied to us for a First Time Buyer Mortgage in London. The issue she had was that her husband was a little older, and she felt slightly uncomfortable with the monthly mortgage payments when I quoted her over the term to his state retirement age.
Evelyn had moved to the UK from Hungary and also had a modest property back home that she rents out. She planned to sell that property at some point in the next ten years and use the proceeds of the sale to pay a large chunk off this mortgage in the UK. That gave us both additional comfort about potentially extending the term on this new application to get those payments lower for her.
Fortunately, her husband was in a job where it would be reasonable for him to work into his 70’s, and we found a lender who got prepared to go eight years past his state retirement age. Evelyn and her husband may have left it slightly late to get onto the UK property ladder. Still, their application progressed with no issue, and they are now the proud owners of 2 properties, indicating a comfortable retirement for themselves when the time comes.
If you can relate to this scenario and need some Specialist Mortgage Advice in London, get in touch and we will see how a Mortgage Advisor in London may be able to help.