|By Marketwire .||
|September 26, 2012 04:30 AM EDT||
LONDON, UNITED KINGDOM -- (Marketwire) -- 09/26/12 -- Leading housebuilder David Wilson Homes has urged first-time buyers looking for new homes to get mortgage fit to avoid any disappointment when looking to secure their first home.
For customers looking to buy a home, getting a mortgage is still the biggest issue, with many not aware of how these barriers can be tackled. Just by following a series of practical steps, first time buyers can appear more attractive to mortgage lenders. This can help with securing a cheaper rate.
Adrian MacDiarmid, David Wilson Homes' Head of Mortgage Lender Relations comments: "Lately we've had a few signs that things are finally starting to ease up, including the introduction of the Government backed 95% mortgage scheme NewBuy. So we're encouraging potential buyers to make themselves as attractive as possible to a mortgage provider and have released our top five tips to making yourself 'mortgage fit'."
"A person's credit score helps lenders to decide not only whether you are eligible for a mortgage, but also how good the interest rate is. It can be affected by a number of things, from missed bill payments to lack of information, which you might not even consider."
1. Check your score
This is the first thing you should do and is quite easy to do online with the two main credit reference agencies, Experian and Equifax. Make sure all your information is correct and if it isn't, you should write to the agency and ask them to change it. If your score is poor, you are able to start making changes to improve it.
2. Understand your limits
If you have credit, through credit cards or loans make sure you keep up with the minimum repayments. Also, try not to exceed 30% of your credit limit. If you do, this can be viewed as excessive debt.
3. The family connection
Unless you have any joint finances with family members these won't show up on your individual credit score. If they have a poor one, make sure you keep this separate. This includes bills and joint accounts in both names.
4. It's all history
Not everyone realises that those with no credit history are often viewed as less credible as lenders have no information on which to base their decision.
Don't get in debt to build up a credit history, just by taking out a credit card and using it regularly (paying off the bill at the end of the month with a direct debit) you'll begin to build a credit history. A mobile phone contract is also a good way to do this.
5. Get on the electoral roll
Lenders look for those that have a 'stable lifestyle', i.e. who are in full time employment and live at a fixed address. If you aren't already, register for the electoral roll as you may not get credit without it.
Adrian concludes, "By following these steps now, purchasers should find that they are in good stead for securing a mortgage when the time comes to getting a foot onto the property ladder."
NOTES TO EDITORS:
1. For further information about 'Barratt Developments' please contact Liz Morley on +44 20 7379 5151.
2. David Wilson Homes is part of Barratt Group, which sold 11,171 homes in the last financial year, making it the biggest housebuilder by volume in Britain.
3. Barratt Group was named Housebuilder of the Year at the Housebuilder Awards 2011.
4. Barratt Group was awarded a maximum five star rating for the second consecutive year in the 2011 Home Builders Federation Customer Satisfaction Survey.
5. In 2011 site managers working for Barratt Group won the highest number of NHBC Pride in the Job Quality Awards for a record seventh consecutive year.
6. Barratt Group is the only housebuilder to guarantee the fixtures and fittings in place at the time of purchase of its new homes for five years.
7. For more information on the developments available across the country, visit http://www.dwh.co.uk/ today.
+44 20 7379 5151