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Does Your Credit File Matter to a Mortgage Application? 
You bet it does!  
When we make an application for a mortgage this immediately triggers a search of the applicant credit files. If a creditor has made a mistake on your credit file this can have very serious implications. Remember that your credit file isn't just your credit "rating", but it includes information issued every month by creditors - for the last 6 years! This means that if there is an error made today, it will still be there in 6 year's time and you may not even know anything about it. Remember, lenders treat credit files like the Bible. If it is in the Bible it is the word of God and underwriters believe it, even if it is wrong. They don't know any better, so if there are errors you can correct them - you really have to.  
Remember this: 
Your credit file is not the same as your credit score. You can have a great score and still have a damaged file
Mobile Phones Contracts 
These are probably one of the most common issues we come across. We change mobile phone suppliers regularly. It appears to be common practice for some mobile phone companies to automatically continue to charge their clients even AFTER the account has been closed down. (I have personal experience of this, so I know it happens). Then the phone company will sell on the unpaid debt to collection agencies who stomp all over your credit file. 
Utility Companies 
This is probably the most important area of concern where mistakes can occur. Lenders do NOT like to see fixed commitments going unpaid, especially for these essential services. Debts in this area can lead to a mortgage application being DECLINED.  
When people move home it is very common to find errors when ending contracts for water, gas and electric and switching accounts to a new home. It is very common to find errors occuring when moving home. When mistakes are made by utility companies they are usually very quick to respond and will make adjustments immediately, so again you must find out if there are errors by obtaining your credit file. 
What can be done? 
First. When you change your contracts it is essential to make sure that you have written confirmation of the change and that your account has been closed with nothing due. 
Second. Before making a mortgage application, the first requirement is to check your credit report. (The FULL report is needed. It is our policy that we will only make a mortgage application once we have had sight of a full credit report) 
The two main credit reference agencies used by lenders are Equifax and Experian. Click the links here to go to their login pages. 
Your credit file makes all the difference, but don't forget you also need regular income and a deposit to get a mortgage. 
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