When taking out any kind of mortgage, your lender will check your credit score to help them determine what sort of applicant you are. They often base it on trustworthiness so that they can work out whether you are the type of applicant that will be able to meet their mortgage payments month-on-month.
You may think that they just look at your income, and expenditures when assessing your credit file and finances, however, this is not the case, they will look at everything!
Your credit file is usually based on a score from 1-1000. This score is calculated through an in-depth analysis of your finances. They will look at your current financial situation such as your bank balance (including other accounts like your savings) and whether you are in debt. Usually, they will also factor in your monthly income, expenditures, and current financial agreements using your bank statements.
Amongst other small bits here and there, your recent addresses will also be factored in. It is quite clever actually!
On your credit file, there will be a list of your previous addresses; unfortunately, the more addresses that are on there, the more likely that your credit score will be affected. The reason for this is that lenders may see that you were unable to stick down a property. This could affect your more if you are a younger applicant too.
Don’t take this the wrong way though! As a mortgage broker in Harrogate, we have seen applicants deliberately leaving off addresses from their files to try and increase their chances of getting accepted for a mortgage; it is important that you do not do this.
For those who choose to leave off an address, it is usually where they have moved out of their parent’s home into rented accommodation. Normally, not changing to their new address on their bank statements, credit card and electoral roll.
So, why does this affect your credit score? If your lender can see on your credit file that half of your accounts are linked with one address and the other half are linked with a different address, where do you actually live? They need to know where you currently live and want everything to line up correctly.
All of our mortgage advisors in Harrogate would say the same thing – “check everything!”. From your delivery addresses in your Amazon account to your online car/home insurance search, anything where you have to enter an address in, use your current one.
We would also recommend double-checking that all of your credit cards and store accounts are linked to your current address. This way, when you are looking at moving home in Harrogate, everything matches up and your lender can’t pull you up on your addresses not matching.
As a mortgage broker in Harrogate, when going through the mortgage process with you, we will make sure that all of your addresses line up and help you make the correct changes so that you stand the best chance possible of getting the mortgage that you want.
Remember that lenders are looking for reliability and someone who has their finances in order. Keeping your addresses up-to-date can sometimes be a painstaking task, however, it always pays off when you come to submitting your mortgage application and you don’t have any trip-ups.
Getting mortgage advice in Harrogate is always an option when it comes to situations like this. Our advisors would love to help you through your mortgage application to overcome any mortgage hurdles you may face along the way.
We have been helping applicants in Harrogate for over 20 years prepare their mortgage applications. Whether you are a first time buyer in Harrogate or looking at moving home, we are here to help!
At Harrogatemoneyman, all situations are considered, and anyone can qualify for a free mortgage appointment with a mortgage advisor in Harrogate. Just give our team a ring or book your free appointment online, it’s up to you how you get in touch.
Last edited 28/12/2022