The Credit Record explained, and available Mortgage assistance from Shire Direct!
The Credit Record has been devised over the past thirty years or so in order to provide a degree of protection for traders providing credit and mortgage facilities.
"Explained things in concise clear language. Easy manner - no pressure - created environment to make a decision."
Mr & Mrs M., Leeds, West Yorkshire
Here we'll explore how your Credit Record may be used and the type of information it may hold about you, and how it could potentially affect your chances of obtaining mortgage funding. Finally, we'll take a look at how Shire Direct can help with mortgage funding even if you've experienced credit difficulties!
Table of Contents:
What is a Credit Record?
So, what are Credit Records exactly?
It seems that George Orwell was correct about "Big Brother" in his visionary novel '1984'! Virtually all the population of the United Kingdom will have some form of computerised record that can provide some form of information about the individual to any interested party.
These can include a whole range of records, for example birth certificates, library tickets, medical and dental records, bank details, sales lists, etc.
For adults, each individual, a Credit Record will usually be maintained. The Credit Record has been devised over the past thirty years or so in order to provide a degree of protection for traders providing credit and mortgage facilities, against potential borrowers who may be somewhat economical with the truth when providing information on an application form.
To be able to compile the Credit Record, financial institutions such as banks, HP companies, mortgage lenders will report details of credit transactions they hold against each account holder. Further information from public authorities regarding bad debts, for example County Court Judgements, Bankruptcy, Administration Orders, and Individual Voluntary Arrangements is collected for inclusion within an individual's Credit Report.
What information does my Credit Record contain?
Your Credit Record will usually contain details of:
- Your address
- Electoral Information (Voters Roll details, including the length of time you have been registered to vote at the address shown)
- Bankruptcy action against you
- Individual Voluntary Arrangements (IVA) you may have been involved in
- County Court Judgements registered against you in the last 6-years
- Mortgage transactions you are involved with, and the amount owing.
- Loan transactions
- Credit Card transactions
- Repayment history and missed payments over the last 12-months
- Details of recent searches by other financial institutions
Who keeps details on my Credit Record?
Credit Reports are compiled and kept by Credit Referencing Agencies, the two main ones being:
- Experian, and
- Equifax.
Do all lenders require a Credit Record for me to get a Mortgage or Loan?
Yes, invariably.
The lender and/or intermediary will check out your Credit Report by carrying out a Credit Search with one of the Credit Referencing Agencies. The search report will enable them to verify your residential stability, credit worthiness, and the extent of your current outstanding indebtedness.
The report will also show trends as to how you've conducted your financial affairs by way of your payment record, missed payments, credit defaults and County Court Judgements.
It also helps us to work out the most appropriate way of advising you, and coming up with the best solution when taking your circumstances, needs and aspirations into account.
However, a note of caution!
If you are making multiple applications with financial institutions, this in itself could be detrimental to your application as with some lenders, especially those institutions operating credit-scoring methods where multiple searches usually result in lower points towards your pass score!
Will all lenders require a credit search of my credit record when assessing circumstances?
Yes - but don't worry if there is adverse credit registered against you!
Here at Shire Direct we understand that personal circumstances can sometimes get into a bit of a tangle. And so we have incorporated a range of lenders and mortgage schemes within our lending portfolios to ensure our customers' requirements can be accommodated - even in the trickiest of circumstances!
Please remember, we're here to help. We always look for reasons to fund an application - not to turn it down! So if you are considering buying a new home, or simply remortgaging, and would like an indication as to whether or not we can help, please do not hesitate to Contact Us!
We have the approach, experience and the skills to arrange mortgage funding - whatever your circumstances!
Our specialist underwriters and professionally qualified mortgage advisors have a wealth of experience in carefully assessing your requirements, and providing appropriate advice. We're confident that you'll find our service to be thorough, and comprehensive, as well as helpful and friendly.
Our lines are open daily until 10.00pm - including weekends, and we'd love to hear from you. So call us now on Freephone 08000 282 281, in confidence, and we'll provide you with a rapid in-principle decision, alternatively enquire online at any time, we'll be delighted to help in any way we can.
So that concludes our look at the Credit Record and the type of information it holds, and how the information held on Credit Records can affect your chances of mortgage funding. Remember, you'll find lots more useful information throughout our website and we're only ever a free telephone call or couple of mouse clicks away!
The overall cost for comparison is 9.8% APR.
The actual rate available will depend upon your circumstances. Ask for a personalised illustration. APR variable and based on a usual case. Most customers are likely to receive a lower rate or the same rate as our overall cost for comparison rate - learn more about APR.
There are no upfront broker fees.
However, a fee may be charged on successful completion. An indication is that on conforming cases (straightforward applications with no or minimal adverse credit) a fee may be charged of up to 1% of the amount advanced, typically £795 and will depend on your circumstances.
For non-conforming cases (where case research and processing may be more complex due to adverse credit or unusual circumstances), a fee may be charged of up to 3% of the amount advanced, typically £1,995.
THINK CAREFULLY BEFORE
SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED
IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Adding existing debt to your mortgage will increase the repayment term and overall cost.
Are you worried and becoming stressed because you are having problems getting a mortgage or remortgage? Worry and stress no more! Here at Shire Direct we provide tailor made mortgage solutions to suit you, and can usually help with all kinds of circumstances including...
Remember, we're here to help, and would love to hear from you!
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Shire Direct and Shire Direct Mortgages are trading styles of Shire Processing Centre Limited which is
Authorised and regulated by the Financial Services Authority in respect of regulated mortgage products and general insurances.
Registered No: 302389. Commercial funding and Secured Loans are not regulated by the FSA.
Licensed Credit Brokers. Consumer Credit Licence Number: 349999.
Shire Processing Centre Limited is registered under the provisions of the Data Protection Act by the Information Commissioners Office: Registration No: Z6795249. Registered in England & Wales. Company number: 2732202. Telephone calls may be recorded for training, monitoring and security purposes. All applicants must be aged 18-years or over.