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Mortgage Applications and Address History

No impact on credit score

Pete Mugleston

Author: Pete Mugleston - Mortgage Advisor, MD

Updated: August 24, 2021

The main thing you need to know about mortgage applications and address history is that some lenders will need more from you than others before they’ll consider you for finance. In other words, if you’re applying for a mortgage and have limited proof of address, the lender you approach could be the difference between approval and outright rejection.

In this guide, you’ll learn how much address history you’ll need to get a mortgage, how to get a mortgage with limited proof of address and more.

How many years of address history do you need for a mortgage?

Most mortgage lenders will request at least 2-3 years’ of UK address history and many will decline applicants that don’t have this amount outright. That said, some mortgage providers will consider applications with 1-2 years, and others don’t specify a minimum amount of address history and will assess the application based on other factors.

The mortgage providers with the strictest policies on this will occasionally make exceptions and lend to borrowers who have less than 2-3 years’ proof of address in the UK. For example, they might be more willing to consider offering you a mortgage if the reason for your lack of UK address proof is because you’re a British expat who’s just returned to the UK.

The amount of address history you have can determine the number of approachable lenders and more deals available to you. This means it can have a major impact on the rates you end up with, and indeed, whether you’re approved for a mortgage at all.

This is why speaking to a mortgage advisor is recommended before you apply, regardless of how much proof of address you have. They can boost your chances of landing the best deal possible by matching you with a lender whose requirements you’re the perfect fit for.

Other exceptions lenders might make

Some lenders are able to accept foreign address history under these circumstances, as long as the applicant is residing in the UK at the time of the application. If you’re a foreign national, rather than an expat, it will likely help your cause if you have the indefinite right to remain and work in the UK, ideally with 12 months residence here under your belt.

Mortgage providers who accept applications based on 6 months’ history or less will only do so under certain conditions. You’ll likely need to have been in continuous employment for a set period of time, preferably with the same employer for at least 6 months of that stint.

Other mortgage lenders might base the application on credit score with no address history requirements whatsoever, as long as your score is high enough. These mortgage providers usually assess applicants on a case-by-case basis and may insist on extra underwriter checks.

Moreover, there are banks and building societies who are known to be more lenient with UK address history requirements if you’re a first-time buyer.

The risks of applying for a mortgage with limited address history

The biggest risk if you’re going it alone and trying to find a suitable mortgage lender yourself is that you might approach one who declines applicants with limited address history outright. Being rejected for a mortgage on any grounds can have an impact on your credit report and this could set your plans back by jeopardising future applications for finance.

Another risk to be aware of is the possibility of having to put down more deposit. There are lenders who cap the loan to value (LTV) ratio at 75% for borrowers with minimal address history, and this would obviously be an issue if you have less than 25% deposit.

The best way to offset these risks is by speaking to a specialist mortgage broker. The advisors we work with have access to the entire market and know exactly how much address history each lender will accept, so you can rest assured you’ll be matched with the right one, first time.

Why mortgage lenders need address history

Your current address and address history are vital parts of your credit information. Mortgage lenders will need to see evidence of it to help them verify your identity and safeguard themselves against possible fraud, but also to trace your financial history at each address.

Being able to view your financial conduct at each address you’ve listed will help the lender form a picture of your creditworthiness, which they will use to determine the level of risk involved in letting you borrow the finance you need. Most lenders prefer borrowers with stable circumstances, so having multiple addresses in a short space of time can be a red flag to them, although many lenders have the flexibility to take the reason for this into account.

To help them verify your identity, mortgage lenders and underwriters will compare the addresses you’ve listed on your application form with official records, such as the electoral register. If you’re not listed on there, it’s a good idea to sign up before you apply.

Do credit reports show previous addresses?

Yes. Addresses are reported to credit reference agencies by lenders and people/organisations you’ve done business with. In addition, any address you’ve used for postal purposes will appear on your credit file, including P.O. boxes and work addresses.

Unlike other types of outdated information, old addresses don’t fall off your credit report and will remain on there indefinitely. Luckily having old addresses listed on your file won’t jeopardise a mortgage application, since they don’t impact your credit score.

How to get a mortgage with limited address history

If you’re applying for a mortgage with limited address history, it’s important to optimise your credit report before you proceed, and finding the right lender is vital. The last thing you want is to approach a mortgage provider who has a strict three-year requirement for address history when you only have proof of where you’ve been living for the last year.

You might find our guide to building and repairing your credit for a mortgage application a useful starting point. If you need to find a lender who will base your mortgage agreement on your credit score, it’s important to make sure it’s as strong as possible.

Once you’ve checked your credit reports, made sure they’re fully up-to-date and optimised them where possible, it’s a good idea to speak to a mortgage broker. They will have access to every lender on the market and know exactly what each one will and won’t accept when it comes to address history. They can introduce you to the mortgage provider who’s best positioned to offer you a good deal based on your needs and circumstances.

As well as factoring in how much proof of address you have, your mortgage broker will take the reason for your limited address history into account when searching for your ideal lender. For instance, if your UK history is patchy because you’re an expat who’s been living abroad, your broker will find you a lender who specialises in expat mortgages.

What to do if a previous address is jeopardising your mortgage application

This can potentially happen if there’s no official record of you having lived at one of your previous addresses, for whatever reason. This could cause your mortgage application to stall as the lender will likely be wary of an applicant with discrepancies in their address history.

Luckily there are potential workaround solutions here and the best way to take advantage of them is through a mortgage broker. If you have documentary proof of residence at the address in question, they can guide you through the process of submitting this to the credit reference agencies and could potentially help you salvage your existing application.

If your application has been declined because of issues with your address history, your broker could potentially help you find a new lender with lower address history requirements, or even no address history requirements, if that’s what’s necessary.

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Does changing address affect a mortgage application?

Your mortgage lender will need to be informed about any change to your circumstances if you have an application in motion with them. In this instance, though, it shouldn’t cause an issue but your lender might want to know the reason for your change of address.

The importance of keeping your lender fully informed if you change address at any point during a mortgage application cannot be overstated. The entire application could collapse if the mortgage provider thinks there’s a discrepancy between where you currently live and the address they have listed for you, so be sure to keep them up to date.

Get matched with an expert mortgage broker today

If you have limited proof of address or are concerned that an issue related to one of your previous residences might affect your chances of getting a mortgage, help is available.

We offer a free broker-matching service that will quickly assess your needs, circumstances, and the amount of address history you have to pair you up with the advisor who’s best placed to help you get a mortgage. This will be someone we’ve handpicked, vetted and matched you with because of their track record serving customers just like you.

Call 0808 189 2301 or fill out an enquiry form and we’ll set up a free, no-obligation chat between you and your ideal mortgage broker today.

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About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

Read more about Pete

Pete Mugleston

Mortgage Advisor, MD

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FCA disclaimer

*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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