Consumers Advised To Check Credit Report Ahead Of Remortgage

By: Tom Dawson

Homeowners need to take steps to safeguard their financial future, it has been suggested.

According to Experian, those Britons who are looking to remortgage their property in the months to come as their fixed-rate deals expire are set to find that such a process becomes increasingly hard. These predicted difficulties were attributed to moves by numerous loan lenders to tighten up their borrowing criteria and withdraw competitively-priced products from the market due to the impact of the credit crunch. With this taking place on an "almost daily basis", consumers are reported to be facing a "mortgage freeze". As such, it was stated to be more crucial than ever that homeowners take the time to make sure their credit history is in the best shape as possible.

In an attempt to present their financial history in the most favourable light, borrowers were urged to make sure that any previous arrears and debts have been paid off in full. Meanwhile, consumers who have developed problems with making repayments in the past were advised to state the reasons why such difficulties appear on their report.

For those consumers who discover that they encounter difficulty in securing a competitively-priced mortgage and so have to opt for a more expensive than previously anticipated product, it may be possible that they struggle to manage their money. Not only could such people face increased mortgage costs, but a rise in such a spending commitment could impact upon their capacity to meet other financial demands such as loans, credit and store cards, household bills and council tax.

Commenting on the report, James Jones, consumer education manager for Experian, said: "More than a million people will be coming to the end of fixed-rate mortgage deals this year and Experian is already seeing increasing numbers of people checking their own credit report before applying for credit. Quite understandably, consumers are taking much more interest in their credit status."

In addition, the financial services firm advised that consumers take the time to ensure that their current address is registered on the electoral roll. Should prospective borrowers fail to do this however, it was stated that they may find a "dent" is placed on their credit history. Meanwhile, Experian advised that credit cards and other borrowing accounts which are no longer being used should be shut down. The company pointed out that money lenders might take into account any credit which is already available to consumers even if they are not actually making use of it.

Those consumers who have previous debt difficulties but are looking to supplement their spending may find that a bad credit loan is advisable. Such a loan could prove to be of particular help to people who in the past have struggled with credit commitments but who are now confident about their ability to make repayments. In addition, this type of loan could be of assistance to those consumers who are concerned about their capacity to meet more costly mortgage repayments. Getting a bad credit loan might be of instance to those Britons wishing to avoid filing for bankruptcy. In recent figures by the Insolvency Service, it was revealed that 2,800 people in Wales became bankrupt in 2006 due to difficulties with managing money. Such a figure represents an increase of 47 per cent from the previous year.

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