With banks being extremely strict about who they deem to be worthy of a loan these days, landlords are being encouraged to do something for themselves by applying themselves to improving their credit rating.
Clearly this is one of the first things the banks look at when they are deciding who to loan money to. The better yours is the more chance you have of getting your hands on a buy to let mortgage and at a favorable rate.
Now is the ideal time to try to get your credit history to paint a more favorable picture of you as a good ‘risk’. With interest rates so low, landlords who have stable tenants are in an excellent position to pay a little more than the minimum on any outstanding mortgages in their portfolio. This will help to improve your credit rating.
It is true to say that one of the biggest reasons for a landlord falling behind in payments and, therefore, damaging their credit history is tenants who default on their rent. It is very hard for a landlord to meet their commitments if a tenant is failing to meet the rent. For this reason it is especially important at this time that landlords are cautious and vet their potential tenants carefully.
Your credit rating has never been as important as it is in the current climate.
