Moving, or buying your first home is stressful enough. It’s essential that you prepare your finances in advance, so that you don’t come unstuck on a mortgage application.
1. Weigh up your income (and your partner’s if you are making a joint application), outgoings and deposit.
2. Check the ratio between your debts and income and improve it if possible.
3. Check your credit report. This will detail all your current and previous financial history so it will take time and patience to check it thoroughly.
4. Challenge any information that is not correct. Dispute mistakes directly with the agency and include as much evidence as possible.
5. Make sure that all your on-going payments are up to date. Build a pattern of making payments on time.
6. Pay off any outstanding debts such an overdue bill, court judgment or fine. Wait for six months before making a mortgage request to allow your credit score to recover.
7. Don’t take on any new debt, this will not only worsen your debt to income ratio but will add another hit on your credit file.