On this episode of the ReadytoBuy Podcast, I explain the difference between 'credit scoring' and your 'credit file', why your credit score isn't the be-all and end-all and talk you through obtaining an AGREEMENT-IN-PRINCIPLE, what it is and why you'll need one!

Time Stamps

PART ONE

00:00 – Introduction

01:38 – ‘Credit Scoring & Your Agreement-in-Principle’

03:15 – The Difference: Credit Files

06:37 – The Three Credit Agencies

09:28 – Monitoring Your Credit File

11:11 – Recommendation for ‘CheckMyFile’

INTERMISSION

11:52 – ‘Definitely Not A Silly Question’ Segment

12:21 – “Do I have to proceed with the lender that I get the Agreement-in-Principle?”

12:28 – Answer

13:09 – Contact Info for Questions

13:35 – Risk Warning

PART TWO

14:12 – ‘What is An Agreement-in-Principle?’

• 14:12 – Defining It
• 14:47 – Factors That Make It Up
• 16:44 – Nature of the Agreement
• 18:06 – ‘Full Application’
• 19:25 –  Two Really Important Purposes
• 20:52 – How Long is it Valid For?
• 21:30 – Word of Warning

22:21 – Conclusion 

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Notes

(00:00 – 01:37) Introduction

• Website: www.MHCMortgages.co.uk 

(01:38 – 03:14) ‘Credit Scoring & Your Agreement in Principle’

• Recap of last few episodes - putting your plan in place and getting yourself as presentable as possible.
• You're almost ready to go out and start looking at properties! But, before you do, I would recommend getting something called an ‘agreement in principle.’

(03:15 – 06:36) Your Credit Score & Credit File    

• I’d also like to discuss the difference between credit ‘scores’ and credit ‘files.’ Having a good one for both is great, but I would argue that a good credit score is slightly less important than a good credit file.

Credit Files

• Your credit file contains all sorts of information about your credit agreements (e.g. loans, credit cards, car finance, store cards, phone and utility bills) and these will detail things such as payment history, balance, name of the lender, how well you’ve conducted it, credit limits, etc.
• It will also show if you are on the electoral roll and address history.
• Aliases will also show up on the credit file, if you've been known by different...

On this episode of the ReadytoBuy Podcast, we talk you through how to represent yourself in the best possible light.

Time Stamps

PART ONE

00:00 – Introduction

01:38 – ‘Getting Yourself as Presentable as Possible’

03:58 – Credit Files

• 04:18 ­– Not Missing Any Payments
• 04:48 – Pay-day Loans
• 05:47 – Not Taking Out Any New Credit
• 06:34 ­– Don’t Push Credit Cards to the Limit
• 08:00 – Overdrafts
• 09:03 – Monetary Disputes
• 10:22 ­– Addresses and Voters Roll
• 11:46 – Spending on Luxuries
• 13:03 – Gambling
• 14:20 – Separate Accounts

INTERMISSION

15:16 – ‘Definitely Not A Silly Question’ Segment 

15:45 – “Can having no credit commitments mean that I don’t get accepted?”

15:51 – Answer

17:06 – Contact Info for Questions

17:32 – Risk Warning

PART TWO

18:10 – Being Open with Your Mortgage Broker

19:06 – Get Documentation Ready

• 19:32 – ID
• 19:50 – Marriage and Names
• 20:14 – Scanning of Documents
• 20:43 – Payslips and Self-employment Documents
• 22:00 – Bank Statements
• 24:21 – Concluding Thoughts on Documents

24:58 – Closing Thoughts

25:26 – Conclusion

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Notes

(00:00 – 01:37) Introduction

• Website: www.MHCMortgages.co.uk 

(01:38 – 03:57) ‘Getting Yourself as Presentable as Possible’

• This is not about physical appearance, rather financial presentation to lender(s).
• A good metaphor is a lender having a blank sheet of paper and some basic info and using this to decide whether to give you a loan.
• No one thing will guarantee you get a loan.
• Marginal improvements on your record is the best way to think.

(03:58 – 10:21) Your Credit File

• Not missing any credit payments is very important! It doesn’t necessarily have to be actually missing a credit payment, often it is more to do with late payments. I would advise that you set up a direct debit for your credit card minimum payment so you don’t accidentally miss payments.
• Pay day loans – AVOID these like the plague! These tend to show desperation on your part and demonstrates to lenders that you are either struggling financially or, at best, cannot manage money...

On this episode of the ReadytoBuy Podcast, we take you through your very first steps in beginning to buy your first home!

Time Stamps

PART ONE

00:00 – Introduction

01:38 – ‘Where Do You Start?’

01:45 – Opening Statements

04:28 – ‘Where Do You Start?’ Continued

05:02 – ‘Biggest Advice That I Can Give You’

05:15 – First Option for Getting a Mortgage

06:51 – Second Option for Getting a Mortgage

07:54 – Third Option for Getting a Mortgage

08:33 – Context for Expertise on Previous Options

09:40 – What a Mortgage Broker Does

INTERMISSION

11:04 – ‘Definitely Not A Silly Question’ Segment

11:34 – ‘Two different banks have offered me different mortgage amounts – why is this?’

11:42 – Answer 

12:32 – Contact Info for Questions

12:58 – Risk Warning

PART TWO

13:34 – Main Questions for Mortgage Plan

14:46 – First Question: How Much Will You Need?

• 14:46 – Deposits
• 16:15 – Buying Costs
• 16:28 – Stamp Duty
• 16:41 – Solicitor/Conveyancer
• 17:08 – Estate Agents
• 17:35 – Surveys
• 20:04 – Mortgage Arrangement Fees
• 20:51 – Mortgage Broker Fees

21:50 – Second Question: How Much Can You Borrow?

• 21:50 – Factors
• 23:11 – Monthly Budget

24:08 – Summary of Previous Things

24:37 – Third Question: What Can I Afford to Buy?

25:32 – Conclusion

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Notes

PART ONE

(00:00 – 01:37) Introduction

• Website: www.MHCMortgages.co.uk 

(01:38 – 05:14) ‘Where Do You Start?’

• There's lots of information that can complicate things.
• Don’t listen to unqualified 'advice'.
• Think about it like a car journey - break it down bit by bit and have a plan in place.
• Buying first home should be a positive experience.
• Biggest advice I can give is to understand all your options.

(05:15 – 09:39) Options

• First option (worst): Lots...