Keeping it clean to buy your dream home

So you’ve found your perfect pad, got a mortgage in place and are on the countdown to completion – time to relax and let your hair down as the hard bits are now done right? Wrong! Many house buyers dreams are dashed at the eleventh hour as they weren’t aware of the importance of maintaining their clean credit score rating right up until they have the keys in their hands.  

Find out how to avoid the credit score pitfalls after you’ve exchanged with some expert advice from Scott Howitt, from Chartwell Mortgage Services.

Why is your credit score important? 

All major lenders will use some form of credit scoring and checking to assess a client/s position financially. Whilst lenders have differing criteria generally they will all use this information to underwrite a mortgage case. Buyers can obtain their credit file using Experian, Equifax or Credit Karma. 

From Exchange to Completion 

Exchange of contracts generally happens 28 days after a new build property has been reserved, however completion will take place at a point after this dependant on the build progress. The period from exchange to completion is however a very important period and it must be stressed that maintaining and keeping finances under control is critical. Almost all lenders will carry out a further check on a customer/s prior to releasing funds. Therefore, any additional financial commitments that have been taken will show and may affect the lender’s decision to release funds. 

Whilst this is a very exciting time for new buyers here are some key things to avoid to ensure your home ownership dreams aren’t unexpectedly halted: 

  1. Buying new furniture on finance – even interest free deals.
  2. Buying a new car on HP or on car finance.
  3. Make sure you continue to pay all bills and other financial commitments on time including phone bills, credit cards, council tax and any loans.
  4. Keep socialising and holiday spending to a minimum because if your living costs have considerably increased, a lender may not think you meet its affordability criteria. 

Our message would be to wait until the home move is completed before committing to any new major purchases on credit or finance.