Credit score and chances of a mortgage

zoe123

Some advice please.

I have just checked my credit score, its 853. Is this good enough to get a mortgage? I am a first time buyer, with 15% deposit and comfortably within what I am told my a mortgage broker a bank would lend me.

If this score is too low I'd rather not try for a mortgage for fear of making it lower.

Thanks in advance.

LeeSouthEast

Scores are not worth the paper you can (optionally) print them on.

Your deposit is ok, but 25% would get you a better rate.

zoe123

so the mortgage providers don't use these scores?

What do they base it on then?

Thanks

LeeSouthEast

No one uses these scores. They're just sold to you to turn a profit for the agencies that produce them. Lenders don't get to see it.

They base it on their own criteria (each credit provider looks for different things). Providing you manage your existing credit well for a long time, don't have any (or excessive) debt, no CCJ's etc, you'll generally be fine.

The bigger the deposit, the better the rate and willingness of lender.

leveller2911

LeeSouthEast wrote: »

No one uses these scores. They're just sold to you to turn a profit for the agencies that produce them. Lenders don't get to see it.

That may be true with banks not using them, but many,many companies do use them.

Im in the construction industry and have a fair few trade accounts with different companies and nearly all of them have checked my credit rating before accepting me.....

LeeSouthEast

Nope. They will have checked your credit report. Your rating is never shared with anyone. Therefore, it is virtually meaningless.

Your Experian credit score can help you to understand how lenders view your credit report.
Before deciding whether or not to lend money, many organisations take your Experian credit report, plus additional information from your application form, and generate a credit score. This score predicts the risk involved in granting you credit.
Calculating your score

Every lender uses a slightly different credit scoring formula that represents its own and industry experience. This may be adjusted according to the type of credit you are applying for. So every credit application could generate a different credit score.
Credit scoring is designed to predict how likely you are to repay a loan and to make your repayments on time. Over the years, automated credit scoring has proved to be more accurate and consistent than subjective human judgement.
Credit scores range from 0 to 999. A higher score suggests that you will probably find it easier to borrow money or buy goods on credit. Knowing your existing credit score could help you take steps to improve it.
Your credit score will also change over time as the information in your credit history and on your credit application form changes, the credit score changes too. You should check your Experian Credit Score regularly, so you keep up to date with your credit rating.

http://www.creditexpert.co.uk/credit-score.aspx

leveller2911

I actually meant "Credit files" Lee but yes your right re: credit score..:D

LeeSouthEast

Ah. Credit Files/Reports get traded around like confetti. My point was to the OP that the 'Score' you pay for is pretty much a waste of £6.