So, what do we mean by the question, are you “mortgage fit”?
When planning on taking on the commitment of a mortgage it makes complete sense to look at your financial position ahead of even thinking about looking at properties.

The first place to start is by getting a copy of your credit file/report.

Most lenders use Experian or Equifax, and by knowing this tiny piece of information and applying for either one, you will know what they will be viewing and they will see the same information as you.

Here are 4 things you need to check:

1. Do you have any credit card balances outstanding?

If so, start working to get them down or better still pay them off.

2. Do you have any personal loans outstanding?

If so, are you allowed to make overpayments to reduce it faster? Are you in the position to clear the loan completely?

3. Have you been at your current address for 3 years or more?

Most lenders want to see where someone has lived for 36 months - if you have moved, your credit file should show the previous address.

4. Are you on the electoral roll?

This simple act increases your credit score substantially.

Are there any late payments on there that you didn't know about? Go back to the source of the information and call them, as it may well be a mistake on their side.

With a few lenders in the marketplace, if a mortgage application is rejected it can be extremely difficult to go back to explain where the error is from, for example a clothing catalogue which has your information as missing one payment two years ago. Your credit report will show you all the credit you have applied for, and its payment history.

As mentioned, go back and question any discrepancies - meet them head on and ask for any error to be moved immediately if applicable.
Do you always live in your overdraft facility? If so why?
With a little planning and cost cutting, would your bank statements look healthier?

Remember you are asking a financial institution to lend you a lot of money over a long term, to buy your home for the future so get your own house in order first. It might just make the difference between you getting the mortgage you need or not.

Should you require any assistance or advice on any of the above, please do not hesitate to get in touch.