It’s important to remember that you need to be careful with your credit score when it comes to applying for a mortgage. This is because you’re more likely to be accepted for a mortgage if your credit score is higher. Addresses can be one of the factors that can affect your credit score. Having fewer addresses on your record is best, however, people have been taking this in the wrong direction.
In some cases, where applicants have moved out of their parents’ address into rented accommodation, they have left the address they previously lived in on their bank statements, credit card, and electoral roll information.
The reason many do this is that they believe that it could help their credit, but this is simply not true. If anything it can make it worse, because even if you don’t think it will show up, if you have moved to a new address, it will be recorded somewhere on your credit report.
This could be from when you have ordered online and your delivery address is shown, or can be from a car/home insurance search. Basically, the address will link to your credit report from anything you have done involving a payment.
Before carrying out a credit search and applying for a mortgage, it’s good to check that nothing will go against you. The things that will need to be switched to your new residential address includes both credit cards and current accounts as well as the electoral roll.
These checks only apply in situations where you have already moved out of your parents or previous home, as usually you only change your address after you’ve moved in, not before. If you are in a situation where you have already moved in and are paying off a mortgage, it’s imperative that you update your address to reduce any harm in the future if you are looking to remortgage.
Updating your address on your credit file and the electoral roll is something that people forget to do, however, it can make a huge difference too. As well as this, being accurate on the date in which you moved into your rented apartment/new home and the day you left is important because, making a mistake with these dates can sometimes make it look like you’re living in two places at once.
You need to demonstrate that you are responsible and take your financial life seriously. Therefore, you need to make sure that every bit of information on your file is up to date to show the lender that you are fully prepared. Impressing your lender is something you want to do ahead of applying for a mortgage and, by doing this, you conduct yourself in a more open and honest way.
Having no mortgage experience as a first time buyer in Derby can be difficult, this is why we are here to offer you a helping hand. Get in touch if you still need some mortgage advice in Derby or you are looking for some insight from a professional mortgage advisor and we’ll see how we can help.