Borrowers applying for a raft of new 95 per cent mortgages will need ‘squeaky clean’ credit histories, brokers warn.
Dozens of home loans, partially backed by the Treasury, are now available to buyers with a 5 per cent deposit.
Aaron Strutt, of broker firm Trinity Financial, says: ‘To get a 95 per cent LTV mortgage, you’re probably going to need a squeaky clean credit history.
Credit checks: Dozens of home loans, partially backed by the Treasury, are now available to buyers with a 5 per cent deposit
‘However, it is worth remembering that even if you get rejected by one lender, another may still take you on.’
Jane King, a mortgage adviser at Ash-Ridge, says: ‘Most firms offering these 95 per cent deals are High Street lenders, which are less likely to accept applicants with poorer credit histories.
‘But if you have just one or two missed payments from say three or four years ago, you may be OK.’
Buyers looking to boost their credit scores quickly should make sure they are on the electoral role and that credit reports by agencies such as Experian are accurate.
Misspelt names, addresses and incorrect dates of birth can negatively impact a credit score, but renters can also boost their ratings if they have kept up to date with payments to their landlord.
However, missing a mobile bill payment or a minimum credit card repayment could damage your score.
