Borrowers Applying for New 95% Mortgages Will Need Flawless Credit
Borrowers applying for new 95% mortgages will need ‘perfectly clean’ credit history, brokers warn
Borrowers applying for a series of new 95% mortgages will need to have “perfectly clean” credit histories, brokers warn.
Dozens of home loans, partially guaranteed by the Treasury, are now available to buyers with a down payment of 5%.
Aaron Strutt, of brokerage firm Trinity Financial, says: “ To get a 95% mortgage you will probably need a clean credit history.
Credit checks: dozens of home loans, partially guaranteed by the Treasury, are now available to buyers with a down payment of 5%
“ However, it is worth remembering that even if you are rejected by one lender, another may still hire you. ”
Jane King, Mortgage Advisor at Ash-Ridge, says: “Most of the companies offering these 95% deals are High Street lenders, who are less likely to accept applicants with poorer credit histories.
“ But if you only have one or two missed payments from three or four years ago, you might be fine. ”
Buyers looking to boost their credit scores quickly should ensure they are playing an electoral role and that the credit reports from agencies such as Experian are accurate.
Misspelled names and addresses and incorrect dates of birth can negatively impact a credit score, but renters can also increase their score if they’ve kept up to date with payments to their landlord.
However, missing a mobile bill payment or minimum credit card refund could damage your score.