What Credit Score You Need For Your Mortgage Loan Approval

When you make an application for a mortgage or other type of credit, lenders work out a credit score for you. This is to assist them to determine whether they consider you’ll be a risk worth taking – you’ll be a reliable borrower and likely to repay the debt.

Generally, a higher score means you ‘re seen as  lower risk –the more points you score, the more chance you have of being considered for a mortgage, and at better rates.

So, without any further ado, let’s get started!

How do lenders make their decisions?

It’s difficult to analyse every lender’s specified criteria, there are certain general grounds that apply to mainstream lenders. 

Below detailed are the areas that all mortgage lenders will asses. A few key factors that’ll help them to decide.

Let’s take a look.

• Details on your credit report including your credit history 
• Information provided by you in mortgage application form.
• Lending policy, every lender has their own lending policy

It is pertinent to seek genuine guidance from Mortgage Adviser London. As they’ll asses the level of mortgage repayments you can afford. This implies you should end up with a mortgage that meets your requirements.

Checking your credit report will give lenders a detailed insight into your credit history.

What is a good credit score to get a mortgage?

The credit score is based on the information mentioned in your credit report.  It runs from 0-999 and gives you a fair idea of lenders is likely of how lenders are likely to view you. The higher your score, the more the chance you have of getting the mortgage application approved. 

Improve your credit score for a mortgage application 

The mortgage environment is highly competitive and it can be arduous to understand what exactly is on offer.

So, it’s a good idea to consult Lifetime Mortgage Adviser, before making up your mind.

It is important to make credit payments on time. This ensures that you don’t have late payments on your credit history.

A few important points to remember

• Stay within your credit limits- It is important to keep your balances at 25% or less of your limit, as this may help you score
• Register to vote
• Reach a score of 750 or higher and you have excellent credit. Yes, getting there 
• Think of creative ways to free up more money to pay down your debt.
• Make sure the information provided on your credit report is up-to-date and accurate.