Mortgage Credit Scoring

SimonPittaway

Hi All,

Will be applying for a mortgage with my girlfriend in the new year, we almost have our deposit and fees ready for the big move.

I would like some advice please, i recently attempted to transfer my credit card balance over to a 0% one so i could pay off sooner, thing is the lender came back with a few reasons, 1, being existing credit too high, 2, being that i had a defaulted account at a previous address. Thing is the address in relation was when i was at uni nearly 8 years ago, i have accounts with Equifax and with Experian and nothing is showing as delinquent on either of these accounts.

Please could someone advise on what the banks (when arranging a mortgage) look at, and how they make a decision so as we can get the best rates available, my credit, although a tad used (paying lots off prior to applying) is in good shape and i have no defaults, 1 late payment in past 6 months but everything else paid on time.

Please if anyone knows, could you give me a break down of what score (in numbers, mine is currently 800) would be okay or adequate to get a mortgage?

Thanks
Si

herbiesjp

Don't get too hung about those scores.

Ultimately it is the score you achieve on the lenders own scoring system, that will dictate what kind of mortgage amount they will agree for you and what rates will be available

Anything older than 6 years should fall off your credit file anyway, and should not affect your mortgage application.

It sounds like you should not have a problem with your mortgage based on your credit history - assuming your deposit/income etc are all fine as well

SimonPittaway

Thanks for this, so are you saying that they only use a bit of the data from the likes of experian etc and for mortgages they do their own calcs that includes income etc, unlike credit card and loan firms who only use experian etc. I have no ccjs or anything, but i just don't want anything to hinder us with the process.

Thanks
Si