Mapping your mortgage

Imagine you are at the shooting gallery at a fair. Your partner desperately wants you to win the 'Big Teddy Bear'. You take aim, squeeze the trigger and suddenly the lights go out! Pitch darkness. Would you fire? Of course not, explains Ray Batchelor from Alpine financial solutions

Amazingly, to their detriment, taking a shot in the dark seems to be what a lot of first time buyers are prepared to do when it comes to finding their mortgage. Lenders are declining more than 16,000 mortgage applications every month, according to new Bank of England figures, mainly because applicants didn't appreciate the implications of lenders criteria, or they failed the credit score or both.

Buying a house is likely to be your largest financial commitment: it is worth doing your homework. You need to maximise success, not minimise it.

First, get as much information as you can about your credit files. Lenders typically use three reference agencies.

Your score may be better on one than it is on another. It therefore makes sense to consider lenders who use the higher scoring agency.

Second, check your credit file carefully. Have you missed any payments? Have you got any County Court judgements you weren't aware of? You would be shocked to know how many people have got judgements on their file that they didn't know about. Preferably get a professional adviser to check your file with you.

Third, talk to your adviser about your eligibility for certain products: your circumstances are as individual as your fingerprint. Your adviser will discuss the
details of the lender's requirements or criteria with you. Understanding your suitability is vital to your success.

Check that your adviser can help you with direct products. Today's market means these are likely to save you money compared to adviser-only deals. Check also that your adviser can help you with the application. Presentation of your case can be the difference between success and failure.

In addition, you need to guard your credit file. Too many buyers forget that applying for a 'decision in principle' online usually leaves a 'hard' footprint on your credit file. Too many footprints and declines could spell disastrous consequences and no one will lend to you.
A classic case of 'don't try this at home!'

Impartial professional advisers can help you. If there is any doubt, your adviser can recommend an appropriate course of action.

It often helps to discuss a client's case with the lender informally. If necessary (with your permission), the credit file can be sent to the underwriters for guidance: your adviser can usually do this for you. This ensures there is no 'formal' search of the client's credit file and hence no footprint. Success becomes a probability not a possibility.

The softly-softly approach can take a little more time, but a thorough approach usually means the client achieves success in the end. Happy house hunting!

Your home may be repossessed if you do not keep up repayments on a mortgage.

For further advice, speak to Ray Batchelor from Alpine financial solutions. Call 07765 545259 or 01462 892425.