As more and more time goes on, consumers seem to becoming much more savvier when it comes to their credit score. This is increasingly the case in those who are applying for first time buyer mortgages in Doncaster.
Of course the media contributes to this, with finances becoming much more publicly discussed. We actually find regularly that most of the customers who have contacted us for mortgage advice in Doncaster, have actually already taken a look at their credit report online.
Popular websites/apps for credit referencing are always Experian and Equifax, though there are plenty of them out there. We personally would recommend Check My File to new customers, as they can benefit from a 30-day free trial, which can be cancelled at anytime, otherwise going out at £14.99 a month.
They offer a colour-coded report that is easy to follow and can provide an overview of your credit, with information pulled from various sources, such as the aforementioned Experian or Equifax.
Try it FREE for 30 days, then £14.99 a month – cancel online anytime.
We usually find that customers are also now much more aware of the things that can negatively impact their credit score, one of which we will discuss in this article, that being having too many credit searches.
Of course, everyone gets credit searches taken out on them when they apply for any credit. Mortgages, loans, phone contracts, everything.
As a mortgage broker in Doncaster, we personally do not carry out any credit checks on you, though your mortgage advisor will ask for permission from you, as the mortgage lender will be conducting one of these.
Credit searches will usually come in one of two forms, those being a soft search or a hard search.
A hard credit search is where a mortgage lender will take a much more in-depth look at your credit report. Any company taking one of these out on you must seek permission before doing so, as they can (although not always) impact your credit score.
The bonus for customers having a hard credit search taken out on them is that your mortgage lender will already have a more complete overview of your financial state. If you are able to pass this, you are likely to achieve mortgage success.
This is not always a guarantee in any situation, but it is certainly a good sign. Hard searches leave a credit footprint on your file, which is a record that a hard credit search was taken out. A successful one can boost your credit score.
The issue is, the footprint doesn’t actually show whether it was successful or not. This means that if you are having multiple taken out on you (whether you failed previous ones or are just having multiple done for some reason), this can actually go against you and cause you to be declined.
The reason for this, is that multiple credit searches taken out in a small amount of time can make it seem like you’re applying for lots of credit in one time, which not only harm your credit score but put off a mortgage lender.
This isn’t to say that having a few will be too detrimental, there’s no need to worry too much, just always make sure you are cautious when having credit checks.
Quite the contrary to a hard search, soft searches are much less in-depth and would most likely be found with say, a price comparison website or as a means to verify your identity. More and more mortgage lenders these days, are also swapping to soft credit searches.
When a soft search is taken out on you, the company conducting the check will not be getting as much information as would’ve been the case if someone else had carried out a hard search. That being said, soft searches are incredibly unlikely to have any impact on your credit file.
Whilst less information is taken from these searches, if the end result is you obtaining a mortgage agreement in principle from the mortgage lender, the difference between hard and soft searches doesn’t necessarily matter, as an AIP is the goal anyway.
Further to these benefits, whereas a hard search can be seen by both yourself and other financial institutions, soft searches are not, only being able to be seen by you and nobody else. That means you can be unsuccessful in one instance and not worrying so much about the ramifications.
If you would like to look at making an offer on a property, we would always recommend having an AIP to hand, as they will become a big help in your quest for mortgage success. These documents showcase to the estate agent and seller, that you’re in a position to proceed and have a mortgage lender waiting.
This puts you head and shoulders above anyone else who doesn’t have this, except maybe a cash buyer. As a mortgage broker in Doncaster, we are typically able to obtain a mortgage agreement in principle for you within 24 hours of your initial mortgage appointment.
Date Last Edited - 16/12/2022