Wednesday, 24 September 2014

As we mentioned in one of our previous blogs ‘What documents will I need when applying for a mortgage?’ we advised obtaining a copy of your credit report before applying for a mortgage. This is so you can accurately calculate how much money you can afford to borrow and also eliminate any delays further down the line that could arise from having a discrepancy on your file.

This week Experian published an interesting article about the top 10 myths of credit. We have highlighted some of the points we found interesting and that should be considered prior to applying for a mortgage.

The first myth is that items in your credit history stay on file forever. Credit reports are designed to give lenders a good picture of your current situation so any issues in the past are irrelevant. Most information about your credit history is therefore held for around six years.

The next interesting myth is that friends and family living in your home affect your credit rating. The only people who can affect your own credit rating is people who you have a financial connection with such as being on a joint mortgage. Living with someone is not a financial connection.

The final myth is that it doesn't matter how many credit accounts you have. Lenders want to be sure that you can afford more credit, so they prefer it if you don't already owe large amounts on multiple accounts. They can also favour customers who aren't heavily reliant on the credit they already have. So try to keep your regular borrowing on cards to less than 25% of your credit limits if you can.

To see the full list of the top 10 credit myths go to

Thursday, 11 September 2014

It has been 5 months since the Mortgage Market Review (MMR) was introduced and there does not appear to be a sign of things settling down any time soon.

One of the key parts of MMR is the change in how a borrower’s affordability is calculated. There have been a number of stories in the press of how customers with excellent credit scores have never missed a mortgage payment but are unable to secure low fixed rate products due to the change in affordability calculations. From our perspective it hasn’t been that we have been unable to obtain a mortgage for clients but it has taken much longer than it once did.

You must also be prepared for the process to take slightly longer. In an article by the Telegraph we saw that 56% of mortgage offers take longer than two weeks to get to an offer stage in comparison with 44% last year. Just 9% of mortgage approvals are made within five days, compared to 13% last year and 25% in 2012. (

This is what appears to be the biggest issue. Time. In another article by The Telegraph we saw that some banks are now conducting 3 hour interviews to apply for a home loan. ( If you wanted to speak to three different lenders this would take up a significant chunk of your time. By contacting an experienced mortgage consultant you avoid having to have numerous interviews with the different lenders. We spend around an hour with our clients discussing their circumstances and requirements in the comfort of their own home, before contacting numerous lenders to find the best available product.