Would-be borrowers should ensure they are “mortgage ready” before applying for a loan, according to credit-reference firm Equifax.
The company said that, with lending volumes on the up, consumers can improve their chances of being accepted for leading mortgages by taking a number of steps before making an application.
These include checking credit reports, cancelling unused credit cards and ensuring that the number of credit applications are kept to a minimum.
Lisa Hardstaff, credit information expert at Equifax, said: “Lenders will typically look at an applicant’s credit history when determining whether they meet eligibility criteria and may also use credit information during affordability assessments.
“It’s therefore worth anyone planning on applying for a new mortgage or remortgage to get themselves ‘mortgage ready’ by checking their credit report before making any applications. They should also remember that lenders will take into account the information provided on the application form, as well as look at an applicant’s income and outgoings to ensure they can afford the mortgage they are applying for, now and in the future.”
Hardstaff added that potential borrowers should try to manage their existing credit agreements diligently.
“Try to pay more than just the monthly minimum on credit agreements and where possible keep credit balances low,” she said. “Settle debts, such as personal loans or hire purchase agreements in full. This demonstrates your ability to repay debts. Missed payments may make lenders think you’re already struggling with debt.”