Mortgage Application and Credit Score

piglet22

Good afternoon

I am not sure if anyone here can offer some reassurance.
We have a slightly complicated mortgage application going through at present, in regards that we are applying for two mortgages. One is a unregulated buy-to-let and the other is a residential.

Firstly, we are downsizing house so overall debt will be in the region of £150k less than at present and total borrowing will be approximately 4 times joint salary, inc buy-to-let which should hopefully be covered by rental. As it stands, we are struggling with current mortgage and credit cards BUT have kept up with payments.

At the time of applying for both mortgages, we both have "good" credit ratings and our mortgage advisor advised that we were classed as medium risk based on current borrowing. However, I reviewed our experian ratings this week and both have dropped, mine has gone from just below excellent to very poor. The only items to have changed are the credit checks for both mortgages are now showing.

We have had the offer on the buy-to-let (Northern Rock) and have just had the valuation for the residential (Halifax). My concern is that there will be another credit check prior to the final release for the buy-to-let or residential which will ultimately mean we lose one/both mortgages just down to credit score Can I just add that my equifax report is still stating "good".

abbieno7_2

hi there - dont know if it is much help but from reading other peoples posts on here - the score on Experian does not mean a thing - it is the report that the lender will be interested in - ie any defaults or late payments etc so i dont think you have anything to worry about

kingstreet

Ignore these flipping scores! Until Experian start lending money what they tell you is at best an indication and nothing more. They don't know your income, how long you've been in your job, how long with your bank, all the things that go into the lender's score.

I'd be surprised if your score didn't go down at this point, to be honest.

You should not be re-scored unless you make a material change in your application, such as an increase in what you need to borrow.

piglet22

Thank you all for your replies. It just had me really worried because we are aware that we need to reduce our borrowing and that is exactly what we are trying to do. If everything goes accordingly to plan, assuming job security, we pose much less of a risk to borrowers.