Equifax/Experian rating help please

Doglover88

Hi
3 months ago i applied for a top up on my existing mortgage to move house which has 3 more yrs to run, 5 yr fixed at 4.75% (as a 1st time buyer i wanted security for a few yrs). it was approved in principle so i found a house and sold mine. In that time ive been switching a credit card debt between 0% cards and when i went back to confirm my mortgage application it was turned down. Apparently my credit score had gone down from 3 to a 4? I have never defaulted or missed a payment so i assume the credit card applications effected it? Now i have to find another mortgage as my exisiting lender wont lend any more and pay a £7000 penalty for gettin out my existing deal. i applied for my credit file with equifax and experian about 6 months ago and all was ok does anyone know how long/whats needed for my score to go back up? is this how it works?
many thanks in advance

Glen

Debt_Free_Chick

There is no such thing as a credit score. Who told you it has gone from "3 to 4"? Individual lenders will score you for all sorts of things, but there is no common score applied to all lenders. And mortgages are scored a little differently to loans & credit cards anyway.

I suggest you get your current credit files (£2 each, by post) and look at them again.

If you have credit card debt, it could be that the total debt plus the new amount you want to borrow is more than the lender is comfortable with i.e. they may think you are overstretching yourself.

Is the new mortgage more than 3 times your guaranteed annual income?

If you can post some more details, then we may be able to spot something.

HTH

Odo_2

Hi glenbat,

If you go to https://www.creditexpert.co.uk you can have a 30 day free trial. Once logged in you can view your credit file. Need to wait for them to send you a pin through the post before you can log in for the first time.

If you don't cancel within 30 days they will automatically take 49.99 for a years membership.

They say that you will be able to see any changes in your credit rating. I am awaiting the pin so I cannot say if it is a good service.

Plus if you are signed up to greasypalm you will get 2 pounds cashback for taking out the trial

Hope this helps

Doglover88

Chick

My mortgage advisor (independant) told me about the scoring from 3 to 4, and he was told this by my current lender Bristol and West. Could be that im overstretching myself, I need to borrow 4.2 times my guaranteed income and need 95%LTV which isnt helping i guess?

I know its sneaky but i was thinking of dragging out my house sale to the 1st time buyers hoping that my credit file would 'improve' over the next couple of months. i.e. B&West re check my details and ive gone back up to a 3.. whatever that is in their eyes

glen

Galstonian

I still think a key part of all this is what the agreement in principle constituted. If they have promised to lend you the money and the only thing that has changed is that your credit card debt is at a better rate than it used to be then this should not alter their decision. I assume you still earn the same, owe the same and want to borrow the same amount?

I would ask the mortgage advisor for more information. I'm puzzled why you needed to go through a mortgage advisor to deal with your current lender. I don't want to start accusuing anyone of anything untoward but wouldn't there be a conflict of interest? Surely they stand to make much more commision on a mortgage rather than you simply borrowing a bit more from your exisiting lender? What exactly have you committed to through the broker? If you do ask questions and find there is any doubt whatsoever then I'd contact your lender and discuss things directly with them.

bbruce

There is such a thing as a Credit Score - see Martin's article on Zopa.

Joe_Bloggs

Your credit score will go down if you move elsewhere, are not on the electoral role, do not have a telephone landline etc.
You say you sold your house in your first post. How can you sneakily hold back the sale in your second post?
J_B.
Get rid of credit cards you don't use.

Compensationitis

Automated credit analysis systems have 'Credit Scores', we all have a 'Credit Score', regulation has encoraged lenders to use these as a matter of course in order to avoid the STASI knocking on their door screaming 'IRRESPONSIBLE LENDING'. You have the FSA to thank for your woes and we will see more of this in future..