So we are bang smack in the middle of the holiday season. You're probably getting ready to pack everything to go off on your fortnight holiday to Spain, Portugal, Greece…
Let's wind the clock back 6 months
Remember when you were booking your holiday 6 months ago, you probably had a glance at your passport just to make sure that it was still valid and had the 3 months extra added onto it. You did that, didn't you! The last thing that you want is to turn up at the airport only to be told that you can't fly because you don't have a valid passport. It's a no-brainer, right!
If that's the case, then why wouldn't you look at your credit report before you applied for a mortgage. There are so many of our clients that take their credit history for granted and just because they don't have the bailiffs knocking on their door, they just assume that there won't be any problem when it comes to getting a mortgage. Quite literally, it's like booking a holiday without checking your passport.
So many times, we come across instances where there are historic defaults on credit cards, loan repayments. Things that clients have forgotten about and because they have buried their head in the sand, they think that they have gone away. But it is the small fry that a lot of the time is the thing that kicks the mortgage application into touch. Here are 3 instances that we regularly come across which cause problems
Internet suppliers placing defaults on clients - that silly little black box hasn't been returned. They want that back you know!
Mobile phone suppliers placing accounts in default because either they have not been told that the service has been terminated or they have conveniently forgotten to update their records
Utility suppliers not being made aware that an account has been closed and continuing to request payments that are not made.
So many times, it is clear to us that our clients are not at fault but if a default has been added to your credit report then you are already on the back foot. It's going to take you an age to get any resolution here and when it comes to getting a mortgage, the clock is probably already ticking. Sellers these days don't tend to wait around if you've got a problem with your mortgage.
So the moral here is to make sure that you check your credit history on a regular basis and it is an absolute must that you know your credit numbers before you contact a broker. There is a great website which collates the 3 credit reference agencies called wwwcheckmyfile.com and I would certainly recommend looking at that website. You can create an account, download your credit file and then cancel the account.
If you are worried about your credit before you start the mortgage application then give us a call.
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