First Time Buyer

Be Realistic

Ensure that you are realistic when working out exactly how much you can afford to spend on your new house. You should ensure the intended mortgage is affordable (by doing a budget calculation) and it is wise to seek a Decision in Principle certificate which our advisers can do for you, so that you know how much you can offer once you have found a suitable property.

Even a newly built house will require some sort of furnishings, whereas older properties may require extensive work, such as re-flooring, tiling or renewing the wiring.

Make sure that you factor in all these likely expenses, in addition to the purchase price, and other fees such as conveyancing and stamp duty.

Great ways to Improve your Credit Score: –

Pay your bills on time

Paying on time any direct debits or credit agreements you may have is a great way to prove to lenders that you’re capable of managing finances effectively.

Register on the electoral roll

If your name’s not on there, you’ll find banks, building societies may not consider you. You can register to vote online or by post. Hyper links https://www.gov.uk/register-to-vote , https://www.gov.uk/government/collections/register-to-vote-paper-forms

County Court Judgements (CCJs)

Receiving any court judgements for debt will have a serious impact on your credit score. If you’re having problems keeping up with payments, find free debt advice online.

Defaults

Receiving any Defaults for debt will have a potential serious impact on your credit score. If you are having problems keeping up with payments, find free debt advice online

High levels of existing debt

Ideally you should eliminate as much outstanding debt before applying for new credit. This is because banks, building societies and credit card companies might be hesitant about lending you more if you already have a lot of existing debt.

Check for mistakes on your file

Even having just a slightly wrong address can have an impact on your score. So, make sure you check all the details and report any incorrect information immediately.

Check if you’re linked to another person

Having a spouse, friend or family member’s credit rating linked to yours through a joint account could affect your personal rating if they have a poor score.

Check for fraudulent activity

If something on your credit report is incorrect or doesn’t apply to you, i.e. if someone applied for credit in your name without your knowledge, contact the credit reference agency immediately to have your file updated.

Moving home a lot

Lenders feel more comfortable if they see evidence that you have lived at one address for a considerable period. Be sure to bear this in mind.

If you’re struggling to improve your score, it’s worth contacting us to discuss ways of improving your credit score and discuss options available to you.

What information is in a credit report?

Each agency holds slightly different information about you, so it’s worth checking for a more accurate picture.

In general, your file will include:

• Name, address and date of birth
• Some search footprints on your file, such as credit applications
• Financial links to other people – for example, a joint loan or bank account
• Any late/missed payments or defaults
• How much money you owe to lenders
• Any Defaults,  County Court Judgments (CCJs) against you that are not paid in full within one month of receiving the notice
• If you’re on the electoral register at your current address
• If you have been declared bankrupt or entered an IVA (Individual Voluntary Arrangement).

It won’t include the following information:

• Your salary
• Student loans
• Criminal record

However, you will asked for this information when applying for a mortgage.