Don’t Pretend to Live Somewhere Else
Once you begin the home moving process, you’ll no doubt be dealing with many stresses. Something that is always a bit of a hassle to sort out, but is very important, is updating all the records of your address so that your bills can go to the right home.
You will likely have a lot to change, from your local GP practice details to your online shopping profiles. It doesn’t just help with receiving posts though, as updated information can be a lot more beneficial for you in other areas, such as your credit file.
Most of the time it can be quite easy to miss an address somewhere when you are going through it all, which can sometimes mean your name might end up being tied to multiple addresses. This actually does have an impact on your credit score. The fewer addresses you have, the better it will be.
Due to the significance surrounding your credit score, you will of course need to make sure that you have a great credit score in order to apply for a mortgage. Making sure these addresses are all up-to-date, is a good way to move closer to that goal.
Applicant Address Behaviours
We frequently see in more recent times, first time buyers in Sheffield and home movers in Sheffield tend to feel like they understand how credit scores work much better, and will look to manipulate their credit score by using their addresses to their own advantage.
Typically, this is achieved when they have moved out of their family home with their parents, becoming renters of their own home. Whilst they do now have an address of their own, they will look to leave all of their credit cards, electoral info, and even bank statements at their previous address with their parents.
Many of these people think that they can just keep it the way it is, to prevent having varied addresses, having a long-standing and stable address instead. Whilst as we said before, too many addresses can have a negative effect, taking part in this type of practice can actually be harmful.
Records of Your Address
The reason why doing something like this won’t quite work is that somewhere along the line if you have moved addresses, there will be some sort of record of you at your new address. It is a very flawed strategy to try and keep them in the same place.
No matter if you are paying your regular bills, have any outgoing car insurance payments, have bought something online or have entered your personal address anywhere else from the time you’ve moved in, somewhere on your credit file, it will be listed.
In turn, this can make it seem like to the mortgage lender, that you are actually living in two places at the same time or that you have failed to disclose crucial information to them. In either of these particular cases, the mortgage lender (who needs to trust their applicants) may not look upon you favourably.
Keeping Your Address Up-to-Date
The most ideal thing that you can do when looking to purchase a new home in Sheffield and apply for a mortgage of your own, is to be completely transparent, make sure all of your addresses are up-to-date and that you are being open and honest.
Basically, this means all your shopping accounts, your electoral roll information (this is a big one), credit cards and virtually anything else that has your address on it, needs to be your address at your current home.
When you look at updating your home information on the electoral roll, make sure that you definitely are using the correct dates for when you moved in and out, as getting this information can once again make it look like you are in two places at once.
What else can be done to help me obtain a mortgage?
Aside from just keeping all of your addresses up to date, there are lots of other tips that could be incredibly beneficial to first time buyers in Sheffield, on the road to completing their mortgage journey.
Some handy tips include staying on top of your bank accounts, trying to avoid unnecessary charges and limit/halt your gambling transactions, especially if you are a regular gambler. If done too often, it can have a highly negative effect.
Bear in mind that your bank account will represent a true reflection of how well you can keep up your monthly mortgage payments, generate some income and handle your finances in an appropriate way. This is a big deal when it comes to determining whether or not you can get a mortgage.
Gifted Deposit
A gifted deposit can be an incredibly useful way for a first time buyer in Sheffield to take their first steps during their mortgage journey. It is here where family members or friends can gift you either some or all of the deposit, as a way to get onto the property ladder.
You should always remember that this is intended to be a gift and not a loan that you will repay. Your mortgage lender will want to see confirmation of this.
Check My File Credit Report
We would always recommend that customers look to obtain an up-to-date credit report as soon as possible, whether new or existing.
Check My File is a fantastic tool that can compile all of your information from a variety of sources, to get a much better view of your financial situation.
Try it FREE for 30 days, then £14.99 a month – cancel online anytime.
Date Last Edited: November 10, 2023
