Your Credit Score’s Affect on Remortgage

Credit score is a primary factor in a lender’s decision to remortgage or not. 

When applying to remortgage, make sure to understand that credit score weighs heavily in the minds of potential lenders. There are three aspects of credit history that most lenders will consider in formulating the risk they are taking on. These are: how you have handled debt in the past, how much total debt you have and most importantly your payment record.

Lenders will not use the credit score alone to determine the quality of borrower you could be. Certainly, most people go through challenging financial times, so a stellar record is hard to keep. Usually lenders will look back into payment history only for the last 18 months. That provides a sense of relief for many borrowers. You can repair the damage.

Also, get rid of any unused credit or retail store cards which have been sitting idle. In addition, keep in mind that you will be more attractive to lenders since you have a credit history versus someone who has never needed credit, or has been very hesitant to borrow.

Ultimately, lenders are looking at the whole picture and how much of a risk you pose to them. Seek advice of a professional remortgage to make sure you are presenting your credit history in the best way possible.