Neil Munroe, external affairs director at Equifax, said: “Reports released this week suggest that more than two thousand applications, potentially worth £365m in mortgages, have been received for the ‘Help to Buy’ scheme.”
“To qualify for the scheme, applicants need a good credit history to secure a mortgage with a 5% deposit, but we know that some homebuyers, especially first-time buyers who haven’t applied for a mortgage before, may not be clear about the role of credit information in the process.
“The banks offering the ‘Help to Buy’ scheme will conduct affordability checks to ensure that even if there is an interest rate rise in the future, the homeowner’s income will cover repayments.”
Munroe stressed that it was important that an individual’s credit information is completely up to date to give them the best chance of getting a good mortgage deal.
He said: “We urge potential homebuyers to review their credit report before they apply. Then at least they can spot any information that might need updating – such as being registered on the electoral roll – to put them in the best position to get a good deal.”
