Accessing credit and loans, especially for big items such as a mortgage or a car, are of course a regular feature of family finances. Applying to lenders and hoping that they will agree to your request can be a stressful experience. However, it can be made a whole lot easier simply by better understanding how a potential lender might assess your application.
The key question for any lender is the chances that you will repay a loan in full and on time. By assessing the risk involved as best they can, lenders can make an informed decision. As a result, most lenders will refer to a credit score constructed by one of the UK’s three registered credit reference agencies. Your credit score is a snapshot of your credit status. It isn’t too difficult to understand your credit score – It is based on a 0-999 scale and the higher the number, the lower the risk.
So, how do the agencies assign your score? A major although not the only factor is your credit report. This is compiled by credit reference agencies from a whole range of available information to paint a picture of your financial reliability. Whether you know about it or not, there is a credit report on you and you can expect it to be the first port of call for any potential lender.
Your credit report includes personal information such as date of birth and address. It also contains details of your credit accounts and money you have borrowed and your repayment record during the past six years. Although it may seem trivial, even if you have paid a mobile phone bill late or missed an electricity bill, it may appear on your credit report and have a detrimental impact. It is therefore important to make sure that you and your family pay bills in full and on time. If you haven’t listed yourself on the electoral roll, then do it. This is one of the resources used by credit reference agencies and gaps in your residency may seem suspicious. Another thing worth noting is that if you are making mortgage overpayments, make sure that you don’t miss out on an entire monthly payment. Even if you are overpaying in order to reduce outstanding debt or guard against interest rates, a missing mortgage payment could be a red flag on your credit report.
Thankfully, it is very straightforward to check your credit report and it is advisable to do so regularly. You can simply request it from any of the credit reference agencies who will likely post it to you within a week. Once you receive the report, make sure that you check it thoroughly for accuracy. If you spot any mistakes, then you should contact all three agencies to have the report rectified. If there is an error connected to family members with whom you have no financial link, then you can ask to be “disassociated” from them through the agencies. If there is an inaccuracy concerning your credit record, then your first port of call should be the creditor who can update their records and then inform the agencies. If the creditor does not agree to amend their records, then you are entitled to attach a 200 word “Notice of Correction” to your file, explaining the disagreement.
Hopefully though, your credit report will need no corrections, in which case you are well advised to simply check it regularly and make sure it remains up to date.
Written in collaboration with David Taylor, finance writer from Leeds
We’ve had a lot of sun here lately. In fact over the last few days it’s been a bit too hot! I had trouble sleeping last night & had to keep the fan on, & I almost dread getting in the car for fear of being turned into a roast dinner!
And in case there are ever any doubts about my Britishness – I was after all born in New Zealand – here we are in the middle of a blazing sunny heat-wave, & I’m complaining about the weather!
(I love it, really…)
This being Wales though rain is never far away & this summer we’ve had our fair share.
Going outside in the wet stuff seems to bother me, & most adults, a lot more than it does my children!
During a recent shower Ellie insisted on going outside into the garden. And I insisted that she put on her raincoat.
Another creature who’s very fond of wetness is that little slimy thing beloved of all gardeners everywhere: the snail. We found millions of them! Mostly on the flowers, busily munching away of course.
We decided then that we would find as many of them as we could & put them in their new home.
We ended up having a lovely time! Ellie was giving each of her new pets their own names: first Daddy Snail, Mummy Snail, Jake Snail, then her friends, teachers, grandparents, cousins, aunts & uncles – anyone we could think of. It was a great little game!
She seemed really pleased with her little snail-house, full of her new pets!
I was also pleased that they were there & not eating up all the garden plants…
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It is good to have dreams, but at some point you have to take steps to make your dreams come true. Whether it is a big home on a large plot of land, a flat in the middle of London, or a modest cabin on the edge of a nature reserve, now is the time to find your dream home. If you have been dreaming about the home of your future, why not take steps to make your dream a reality?
1. If you don’t start now, you might never start.
Sure, it’s easier to sit back and be content with what you have. Maybe you are renting and you are simply complacent, paying the mortgage off for your landlord. The time to start reaching for your dream home is now. You will never be any younger or more motivated than you are today to start the process of getting into your dream home. Start investing in your own future by finding a property you love and making it your own.
2. Mortgage rates are at an all time low.
Mortgage rates are incredibly low throughout the world and in Australia, rates are as low as 2%. With the expectation that home prices will remain stable and economic growth will occur in 2014, Australia is a great place to find your dream home and make your dreams come true. With the help of 1300 Home Loan you can own the home of you have always wanted. The only place for mortgage rates to go is up and as rates go up, home affordability goes down.
3. It is still a strong buyer’s market.
Prices are stable throughout the world and buyer’s still have an advantage just about anywhere over home sellers. The markets have enough supply unless you are looking in a city such as London, and with lower mortgage rates homebuyers can purchase homes that were once considered above their means.
4. Foreclosures are still going strong.
Homeowners are still trying to get out of bad mortgages and are unable to keep their large homes. You will be able to get a better home for your money, but not for long. The rate of foreclosures is expected to decrease as the market continues to stabilize and the economy remains in a pattern of growth.
5. Confidence in continued economic growth is high.
No matter how you look at it, economic growth is happening and is expected to continue. We’ve all been living in a period of economic decline for years and the economy is taking a turn for the better. Home prices are low and only expected to rise. Job security is strengthening for employed workers and most experts agree that now is the time to buy for the best return in your investment over the years.
6. DIY Home Restoration and Interior Design Is Easier Than Ever
Whether you are tuned into HGTV or regularly check websites like Fine Home Building, the knowledge is out there on how to do redesign projects and make the changes you want for your dream home. It will save you money, so if you’re holding back because of a few thousand dollars, you can make up the money when it comes to the design aspect of your home.
My personal circumstances have changed dramatically recently – more on this later! – so this is particularly relevant to me at the moment.Written in collaboration with David Taylor, a finance writer from Leeds, England, who also spends time in Melbourne, Australia.
It was Jake’s turn to say the magic words that can make this here Daddy very happy.
The Mummy had cooked dinner & I was in the kitchen clearing up, as is my wont.
She & Jake & Ellie were all in the lounge watching TV together.
Suddenly there was the sound of rapidly approaching quick little footsteps…
Then a little voice, shouting
Wait for it…
“DADDY, COME AND WATCH FOOTBALL WITH US!!”
Yes, they were all watching football. Without me.
And they wanted me to watch it with them!
I was sorely tempted, and as much as I would have loved to accept the gracious invitation as a dutiful Daddy I carried on clearing up after dinner.
I did though get in to the lounge as soon as I could!
To find that they were all now watching Sooty. Apparently the match was very dull.
And anyway my first (sporting) love has always been rugby: I hope to introduce Jake & Ellie to its joys as soon as I can!
So, “Izzy Wizzy let’s get busy!”
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When they see me they are often madly excited. They run up to me shouting: “DADDY! DADDY! YOU’RE HERE!”.
It’s often difficult to park the car; I have to wait until I can herd them away. They want to touch my hand, greet me.
Jake especially is fond of telling me: “YOU’RE THE BEST DADDY IN THE WORLD!”
He’s quite fond of telling other people too!
More often than not they’ll insist on saying goodnight or goodbye with a big kiss & a big hug.
These indeed are the Magic Moments that make this parenthood thing worth it :)
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