Why Do You Need A Credit Report For A Mortgage?
Why do you need a credit report for a mortgage?
The answer is just like when you take out an overdraft or apply for a credit card, a mortgage is a form of credit that you can apply for if you want to borrow money to buy a property.
Most lenders will use a credit scoring system when they assess your mortgage application.
Many of them use their own credit report system to work out your credit score based on information held in your Credit Report.
And they will routinely check your information through more than one Credit Reference Agency.
You may ask “What’s the minimum credit score I need for a mortgage?”
There isn’t a specific credit score that you need for a mortgage, but the higher your score the more likely your application will be accepted.
This is because having a higher score makes you a lower risk, and suggests that you are more likely to be able to keep up with the repayments.
If you have any outstanding debt or have struggled in the past to repay a credit card or other forms of credit, you will be seen as a higher risk.
Even if you’ve never been in debt, not having any credit history could also affect an application. It’s important that as a lender we can see you have a good track record of sensible borrowing.
Check My File will base your credit score on all of the Credit Report information.
Your credit history is gathered from Equifax, Experian, TransUnion and Crediva and will help you get a better understanding of how you are likely to be assessed when applying for a mortgage or other credit.
Click the link below for more information and to find out how your credit report will look to a lender.