Arranging a mortgage can be a challenging task, but it is extremely difficult if your credit report is incorrect.

If you are applying for a mortgage, you know how important your credit report is. Your lender will consider a number of factors but the contents of your credit report will have a massive impact on their final decision.

This means your credit report can decide how much money you have to pay each month for decades, and it might even decide if you are eligible for a mortgage or not.

Given the number of things people need to take care of when buying property and arranging a mortgage, it is easy to leave certain things for the experts. However, if you assume that your current credit report is accurate, you might be in for a nasty surprise when you apply for a mortgage.

Not every credit report is accurate

If you have a poor credit report or your past actions have resulted in your credit score in being less than stellar, you know you will struggle to arrange an affordable mortgage.

However, some people have applied for mortgages, only to be refused or offered such a poor standard of mortgage that they cannot press ahead with their property plans. These people have been left surprised at a poor credit report, and if they had reviewed their report prior to applying, they could have avoided this outcome.

There are two leading credit agencies when it comes to credit reports

In the UK, Experian and Equifax are the trusted credit agencies when it comes to credit reports.

The information contained on both reports are not necessarily the same, which means mortgage applicants are advised to review both reports to obtain a full picture of what lenders see when they review an application.

There is a difference in how some debts are reported by each agency, and even if you checked one report and felt confident about the findings, there might be less than pleasant reading on the other report.

How can you minimise the impact of inaccurate credit reports?

The most important thing you can do to minimise the impact of inaccurate credit reports is to take nothing for granted.

Buying a home is often a lengthy process, especially for first-time buyers. Therefore, use this time wisely. At least six months before you look to make an offer on a property, review both your Experian and Equifax reports.

  • If everything is in order, you can proceed with confidence
  • If there is a sizable difference, or something is notably wrong, you need to have this resolved

If there is a clear error, collect paperwork that indicates the error and state your case to the agency. Mistakes can happen with credit reports, and you will not be the first person who has an inaccurate credit report.

It is best to remain calm, but act quickly. The longer you leave a problem, the harder it might be to resolve. However, by acting swiftly when you realise there is an issue, you improve your chances of improving your credit score in time for your mortgage application.

How to explore your mortgage options with The Money Hub

If you are looking into taking out a mortgage in 2022, but if you don’t devote the time or energy to finding the best deal, you might miss on great value. Thankfully, help is at hand.

Call The Moneyhub Limited on 0203 725 5830 and speak to one of our highly specialised and dedicated Mortgage Advisors or you can complete an enquiry form which will allow you to schedule a call time.

DISCLAIMER: These articles are for information only and should not be construed as advice. You should always seek advice prior to taking any action.