How’s 2018 looking for house price movements in your area?

For anyone trying to buy – or sell – a property right now, the UK housing market is a confusing place to be. Tax cuts for first time buyers would seem to be an encouraging sign but then mortgage approvals have hit a significant low. On the one hand house prices are still some of the highest in Europe – but for those looking to sell movement has been incredibly sluggish. So, where are we right now in terms of the housing market and what change is there on the horizon? It’s not a great time to get a mortgage According to industry trade body UK Finance, mortgage approvals fell to a 13 month low at the end of 2017. 40,488 mortgages were approved in November, for example, compared to 41,576 in September. Some experts have predicted that this marks the beginning of a downward trend in mortgage approvals, something that has been made worse by the rise in interest rates last year. There could be many other reasons for the fall too, from the higher interest rates on mortgages in 2018 t
http://bit.ly/2GzIBbM

Advertisements

Credit file vs credit score – what’s the difference?

“Credit file” (or “credit report”) and “credit score” are terms that are often used fairly interchangeably, as if they represent the same thing. However, while both involve the same data these are two quite different elements in the picture of your financial health and history that available data can create. So, what’s the difference? What is a credit file This is essentially a potted history of your financial behaviour with respect to the credit that you’ve had. This information comes from public sources (e.g. the electoral roll) and also from private sources (e.g. data that is shared between lenders). It is collated by credit reference agencies who then put it together into a report that is made available to lenders, mobile phone operators – anyone that you apply for credit with. What’s in a credit file? There are three main elements to your credit file: who you are, how you’ve borrowed and what you’ve borrowed. Who you are. This is personal information about
http://bit.ly/2rPpDuv

How do Credit Reference Agencies work?

Credit reference agencies, such as Experian, have come to play a significant role in most people s lives. We tend to interact with them at the point of applying for credit, whether that’s a mortgage or personal loans. However, while most of us have had some interaction with credit reference agencies at some point there is still quite a lot of misunderstanding about how they actually work. Why do credit reference agencies exist? According to the World Bank “credit reporting…allows lenders to evaluate the borrowing capacity of clients. And lets good borrowers benefit from more and cheaper lending.” Today, credit reference agencies have two main purposes: to help lenders make decisions that are fair, consistent and well informed and also to help prevent financial fraud. There are three agencies in the UK: Callcredit, Equifax and Experian. Who uses credit reference agencies? Banks, other lenders, building societies, mobile phone companies and retailers are some of the main organis
http://bit.ly/2rFr3ro

What are your responsibilities as a guarantor for a loan?

For someone without a great credit score, finding a friend or relative willing to be a guarantor can be a simple solution to getting rejected for credit. If you’re willing to stand as a guarantor for someone you know then you’re doing them a great favour. However, it’s also important to understand what you’re signing on for and what might happen if they’re not able to pay back the loan. What is a guarantor? If you decide to be a guarantor then you’re guaranteeing the obligations of the person who is taking out the loan. In practice, that means that if the borrower can’t make any repayments on the loan you’ve agreed that the lender can demand them from you instead. Guarantors are asked to sign a guarantee agreement – this is a legally binding document and once you sign it you become responsible for the loan repayments if the person you are acting as guarantor for cannot pay. Why do lenders ask for guarantors? It all comes down to how creditworthy the borrower is. If t
http://bit.ly/2rCZr6a

What types of credit may still be available if you have a bad credit history?

If you’re looking to borrow, bad credit can be a problem. However, even if you don’t have a perfect credit score, you still have options. Roughly 30% of people fall into the territory of having a “bad” credit score i.e. one that sits at the bottom of the levels defined by credit references agencies. However, it’s widely recognised that even someone who falls into this category may still have borrowing needs. And, as sensible borrowing can actually help to mend a broken score, credit is something that could benefit anyone, even those on the lower end of the spectrum. What counts as a bad credit rating? It depends very much on the agency doing the rating – and not all of them are that straightforward about the numbers that would give you a bad credit score. However, if your credit score sits at the lower end of the scale then you’re firmly within this category. There could be any number of reasons for ending up with poor credit. It might be something as obvious as defaulti
http://bit.ly/2rxnFyG

What types of credit may still be available if you have a bad credit history?

If you’re looking to borrow, bad credit can be a problem. However, even if you don’t have a perfect credit score, you still have options. Roughly 30% of people fall into the territory of having a “bad” credit score i.e. one that sits at the bottom of the levels defined by credit references agencies. However, it’s widely recognised that even someone who falls into this category may still have borrowing needs. And, as sensible borrowing can actually help to mend a broken score, credit is something that could benefit anyone, even those on the lower end of the spectrum. What counts as a bad credit rating? It depends very much on the agency doing the rating – and not all of them are that straightforward about the numbers that would give you a bad credit score. However, if your credit score sits at the lower end of the scale then you’re firmly within this category. There could be any number of reasons for ending up with poor credit. It might be something as obvious as defaulti
http://bit.ly/2G146lI