LEEDS, UNITED KINGDOM--(Marketwired - April 26, 2013) - First time buyers face a number of challenges when attempting to buy their first home and getting approved for a mortgage is one of them. Finding the right mortgage for your finances and the type of property you want can be difficult, but you can take steps to make the whole process a bit easier.
A growing number of mortgage providers are looking at a tenant's rental record to see if they made their rent payments on time. This is increasingly being factored into your overall credit score which could affect your eligibility to get a mortgage(1).
Credit ratings are a vital part of getting a mortgage or other forms of borrowing as it allows the lender to see how much of a risk you are and decide whether or not to offer you a loan. Your credit profile is made up of payments and direct debits such as household bills, credit card bills, phone bills and more which collectively paint a picture of your ability to meet repayments. Missing payments could result in a bad credit history which might mean you could be refused a loan or mortgage.
There are a number of ways you can improve your credit history and paying your rent on time is just one way to improve this. Sign up to the electoral register as this is one of the places that credit agencies check(2).
Moving frequently can also affect your credit rating as credit reference companies look at addresses lived in over the last three years- which is another reason to be a good tenant! Moving around a lot, especially after periods of less than six months can reflect badly on your credit report, especially if you want to be a homeowner.
Asda Money has partnered with Noddle to offer customers the chance to take advantage of the free for life Noddle credit report- a great way to help protect your credit rating.
Notes to editors
(1)Changes Affecting Your Credit Report, AARP, 12/12/2012
(2)Credit rating guide, Asda Money 25/07/2012
Asda Money is a trading name of Asda Financial Services Limited. Asda Financial Services Limited uses a selection of companies to provide its products and services. Please refer to www.ASDA.com/money for details of our product partners and the relevant terms and conditions for each of our products and services.
Founded in the 1960s, Asda today is one of Britain's leading retailers. It has over 180,000 dedicated Asda colleagues serving customers from 542 stores, including 32 Supercentres, 309 Superstores, 27 Asda Living stores, 174 Supermarkets, 25 depots and seven recycling centres across the UK. It has its main home office in Leeds, Yorkshire and its George clothing division based in Lutterworth, Leicestershire. Asda serves over 18 million shoppers a week in store and its growing home shopping business at www.asda.com serves 98 per cent of UK homes.
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