Move 2 You

In the last article on mortgages (see it here) we pointed out the way that mortgages are putting the brakes on the housing market – how they’re one of the main reasons people are not able to move house at the moment.

There are many reasons for that problem – some that are out of our control, and some that we can all do something about. There’s no point worrying about what we can’t change … there’s enough opportunity to seize by focusing on what we can influence.

The article is about the first of those – the first hurdle that you can overcome to help you successfully obtain a mortgage that will enable you to move house.

(Oh, this also applies to any of your friends & family, and to anyone else who might be wanting your house … so please help us share this information so you can help your buyers too!)

So … what’s the first hurdle?

It’s the way that banks (and any other lenders) look at you.

Now, you already know that our free move2you web service matches people with property, and property with people - but did you know we also rate the quality of those matches – so you get to find out if the person who says they want your place really looks like they want it? After all, you don’t want to waste your time with people who are less likely to take things forward do you?

Well, if you put yourself in the bank’s position, you’d want the same thing. Many people now know that we all have a “Credit Score” – a file that’s kept on each of us that’ll give banks (and other lenders) information about our financial track record.

Some of us have checked that file, others can’t be bothered. The majority of people don’t know how to check it.

And when people think about this information they assume that the banks are interested in assessing risk.

This is a myth.

They’re not really using this information to check risk. What do you think they’re more interested in?

Think about this! – because if you do “get this”, you can put yourself in a much stronger position at the very first hurdle.

What are the banks really looking for? What do they obsess about? What’s reported in the media about banks?

It’s all about profit. Banks want to know how much profit you can make them.

Do you see how that’s different from risk? Sure, if your credit file tells them you have a dodgy track record in paying bills and loan repayments then they’re much less likely to want to lend to you. But not because of the risk itself … because you will likely make them less profit that someone else.

This is so important!

So what can you do about this?

In later articles we’ll give you some actions that you can take to improve your financial chances, but for this article today we’ll provide the starting points:

Number 1: Think Like They Think

In other words, if you know what the banks are looking for, you start to know how to play them at their own game.

So … what are they looking for? (Imagine you’re looking for a date …) They’re looking for Attractiveness.

Hmmm … what does that mean? How can you be “financially attractive”? Does that mean you’ve got loads of money?

Well, that helps … but that’s not really what we’re talking about here. The thing that makes you super-attractive to banks is that they think you’re going to make them lots and lots of lovely profit. Nothing will get the salivating more! We’ll cover more on how to do that in later articles.

Number 2: Take control & ownership of your file – only YOU care about it!

It’s sad, but true. You’re the only one who really cares about your credit file. Or you should! Because if you don’t care about it, then that leaves no one who cares about it.

And that can really harm you.

Lots of organisations add information to your file – credit card companies, utility companies, banks, mortgage lenders and many others. But not one of them cares about your file. Sure, they won’t create a problem for you deliberately, but they all make mistakes. It’s just that there’s no consequence to them if they do make a mistake.

But there could very well be a consequence to you.

So … you need to know if your file is right, and if it’s got errors in it. Because errors could make you “ugly” … and you want to be “attractive”, right?

We’ll tell you where to get your credit file (for free) in a moment. First, let’s look at what you need to do once you’ve got hold of your file.

Number 3: Verify and Act

What should you look for when you’re checking your file? Here are the priorities:

(a) Right Personal Details – is everything about “you” (the person) correct. Name(s), address(es), other personal details. If they’re not right you could get mixed up with someone else … someone who’s “ugly”. And you don’t want that!

(b) Right Debts and Balances – are all the credit agreements listed really yours? Are the balances right? Are the amounts repaid shown correctly? Do they show any missed payments? Are those accurate? Again, wrong information could make you look “ugly”.

(c) Currently Active Accounts Complete – does the file include all your currently active records? If you know something’s missing it’ll be showing up on someone else’s file. And if that record is something that’ll make you look more “attractive” then you definitely want it back on your file!

Number 4: What if there’s an Error?

If you find a problem with your file, firstly remember … you’re the only one who cares! So you need to write to the agency requesting a change be made to your file. Again, we’ll cover this in later articles.

What to do Right Now

Are you attractive or ugly? You need to know … so you need to get hold of your file. There are many ways that you can do this, and most charge a fee for doing so.

It’s well worth spending money on this anyway, but for now, here are a couple of ways that you can get the information for free, using the main two credit reference agencies, Experian and Equifax:

For the Experian route, go to www.creditexpert.co.uk and choose the Free Report option. They’ll sign you up for a 30 day free trial. Once you’ve got your file, just phone them on 0800 656 9000 to cancel your trial and that’ll stop any charges being made.

Another option is through Equifax, at www.econsumer.equifax.co.uk You can try any of their services, but look for the option that says “free for 90 days, then £69.99 for 12 months”. Again, once you’ve got your report, just phone them on 0870 010 0583 to cancel the membership and you won’t get charged.

Of course they could change their offers and contact numbers at any time, so check out what’s available – these details are right as this article goes to press.

So … we’re starting to uncover a lot of information – really important stuff that you need to be aware of … and this is just the first hurdle when playing the mortgage game.

But, if you know how the game is played, you can get better at the game, can save yourself lots of money, and can win.

And that means you (and everyone else you share this information with) can get the best deals, and can move house … and you can even help other people in your chain at the same time … so everyone wins!

Stay tuned for more key info that’ll make all the difference to you.

Chris