A good credit rating 'vital' for FTBs
30th Apr 2012
It is essential that people hoping to take their first step onto the property ladder have a good credit score, according to one expert who has advised prospective homeowners to do 'all they can' to boost their rating.
Catherine Hearnden, director at MyMortgageDirect, said that first-time buyers (FTBs) need to have a "squeaky clean" credit rating.
"What we are finding is that your credit file has to be absolutely squeaky clean, so if you think that you are going to start saving up for a deposit and you might be thinking of taking out a mortgage in the next few months or few years even, then you need to check your credit file and check what is on there," she advised.
As there has been an increase in identity fraud, people need to ensure their record is as clean as possible to avoid delays in their mortgage application, or even a refusal, Ms Hearnden stated.
"We have seen an increase in them refusing loans just because of tiny defaults, poor credit and for not being on the electoral role," the expert added.
Anything that people can do to increase their credit score is a good idea, she added, recommending that people always register on the electoral role, even if they move house often.
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