Ignore the score
Your credit score is a made up number. Very very few lenders use it (I think you could count them on one hand). What happens with most lenders is one of 2 things:
High street – they pull the information from your credit report, by this we mean balances, limites, payment history etc. That is then combined with the information from your application form. That is then scored and you either pass or fail that part of the application process. The score from the credit agencies is not used.
Non high street – Once you go off the high street, no credit score is used. They typically work off more of a checklist –
Is your adverse within criteria? Yes/No.
Is your income acceptable? Yes/no.
Does it pass affordability? Yes/No, and so on.
If you have a row of yes’ by the end then it is quite likely you will get your mortgage at the end of it.
The rate is not that important
Its funny, as a broker who deals with a lot of adverse we are used to seeing higher rates on a regular basis than most brokers. What I found (more so with smaller mortgages in fairness) was that people would be shocked by the rate, but ok with the repayments.
Its not the rate that is important. It is the repayments that matter as it is that what needs paying month after month come what may.
The other side are the fees. A lot of lenders may offer lower rates to sway you, but when you add in the fees – application fees, arrangement fees, valuation fees and so on, that can add up.
It is important to not get sucked in by the rates. You (or we if you are using us are your broker) will look at the overall cost. Its all well and good saving £50 a month in repayments. Over 2 years that equates to £1,200. But if the fees are £3,000 it is more expensive overall.
That being said, for some people the repayments are the priority rather than the overall cost. As your broker we will find out what is important to you and come up with what we think is the best solution.
How much to offer?
This is a difficult one isnt it? It is so easy to get caught up in the moment and with estates jobs to drive up the prices, they will know how to do that.
On the one hand, I always say have a price in mind of how much you want to offer and dont go above that. On the flip side however, if an agent comes back and says an extra £500 will get you the home would you regret not offering the extra £500?
This is one of those things that comes down to the individual. But it is important you do not get caught up in the moment and offer more than it is worth or more than you are comfortable with.
Speak to a Broker
Ah come on! I could not post top tips and not mention using a broker, specifically Mortgage Success!
We have plenty of good reviews on google and trustpilot
We have awards,
Mortgage Success is small and family run which means no call centres, we care and you can speak to your advisor,
We have over a decade of experience.
I could go on, but I think thats enough.
We are more than happy to help if you would like discuss your circumstances. But even if you prefer to do it without using us, we wish you the best and happy house hunting. Enjoy the looking stage, it gets a little more stressful once your offer is accepted.