You’ll find when applying for credit, the fewer addresses that you have tied to your name and accounts the better it will be for your credit score. Because of this, it will also be better for when you apply for a mortgage.
A lot of modern First-Time Buyers in Sunderland and Home Movers in Sunderland feel like they are gaining a deeper understanding of how credit scores work and have a tendency to utilise their previous and current addresses to their advantage.
We find it’s most commonly seen in applicants who may have possibly moved out of their parents home into a new rented accommodation, but they think it is a great idea to leave their bank statements, credit card and electoral roll information registered at their previous address.
Whilst it might sound like a preferable route for some people to take, in all honesty this is a very flawed strategy. No matter if you think you’ll get away with it, any time you have moved home to a new address, there will be some record of it somewhere on your credit report.
This could be showing from a delivery address you have set up when you have ordered something online, to any online home or car insurance searches you have undertaken, as well as various other things that may be tied to an address.
We would say that without any shadow of a doubt, the best strategy for someone looking at their options for buying a home and taking out a mortgage, is to get all of your accounts, cards, accounts and electoral roll changed over to your new address.
Make sure all your addresses are up-to-date, accurate and consistent with one another.
When you update your address on your credit file and electoral roll, it is important that you double-check the date you moved in and the date that you moved out. If you make any mistakes with either of these dates, it can appear to the lender like you are living in two places at the same time.
Correcting your addresses and dates is a more open and honest way of trying to apply for a mortgage with a lender and will definitely work in your favour.
There are other helpful tips that first-time buyers in Sunderland might wish to use alongside keeping your address up-to-date.
One of these includes maintaining your bank accounts well. Try to avoid unnecessary charges and limit any gambling if you can. This will show the mortgage lender that you are responsible and can manage your money well.
Another very popular and useful option is to use a gifted deposit. By utilising a gift from a family member or friend, you reduce some of the financial burden. If they gift you more than the minimum 5% deposit, you open yourself up to better rates and mortgage deals.
We always recommend obtaining an up-to-date credit report, so you can see where you stand financially. To learn more, please see out article on Obtaining an Up-to-Date Credit Report.