Lesson 7 Credit history and your application documents

Module 2 | Learning aim: Prepare reliable evidence without chasing quick fixes.

A mortgage application is an evidence exercise. Your adviser or lender will explain the income, spending, debt and deposit records they need for your circumstances. Employed, self employed and variable income applicants may need different documents. Tell them about recent changes rather than trying to make the paperwork look simpler. [S8]

Check your credit reports for errors and ask the reporting organisation how to correct inaccuracies. Keep payments up to date and ask an adviser before making new borrowing commitments during a purchase. A credit score shown in an app is not a mortgage approval.

Put your identification, address evidence and financial records in a secure folder. Keep notes of where deposit money came from, including gifts and transfers. A large unexplained payment may lead to questions even when the money is entirely legitimate.

If you have a missed payment or an unusual income pattern, disclose it early. There is no benefit in hoping it will go unnoticed. Be wary of anyone promising guaranteed approval or encouraging you to hide a debt. Your aim is an accurate application and a sustainable payment, not merely a successful application.

Powwow Tip

Honest information gives your adviser a chance to find a realistic route.

Your next step

Ask for a document checklist and gather one missing item today.

Knowledge check: Is an app credit score a mortgage approval?

Source references: S8,S15. Original teaching examples and Powwow Tips are Property Powwow guidance. See the source register for current guidance links.