Just received credit report, am I going to be turned down

2bFrank

Hello,

I have recently applied for a mortgage and we are awaiting to see if we have it or not. However I have just received by credit report from Equifax (Awaiting Experians). I bought the extra Credit report as well to receive my Credit Score.

I got a score of 437 which apparently is good and I am above the average for UK borrowers. However when I looked at the report I have a late payment for my barclaycard March 2010. This was due to me being on holiday and simply forgetting to pay the bill. I sorted it when I got back and paid the card in full. However is this going to affect my credit. The only other credit I have is my mobile and my car Finance (Which I got in March this year). I have two credit cards (AMEX for points which is paid off in full each money by Direct Debit, and the Barclaycard for buying things on the Internet for protection where they dont take AMEX), both cards are fully paid, infact the AMEX is in credit due to a refund. Everything else in the report is classed as excellent (i.e. long account, searches etc)

All in all, is the late payment or anything a mentioned above going to affect my mortgage application, I am just nervous about it as we have found the house we like.

Thanks

hcb42

All lenders have different criteria, however I wouldnt be overly worried, although other factors will also be considered e.g. LTV etc

broker

I wouldn't have thought so as it is over 12 months old. If you have plenty equity/deposit then I would say definitely not. I think the score is out of 999 though which means the score is a bit low. Some lenders do a credit search and disregard the score however. Can't remember which ones though

2bFrank

Thanks for your quick replies.

The LTV is 80% (We have a 20% Deposit) Also it is a joint application, so I know my missus record will be considered as well. I know she has no issues as all bills are paid imediately, she has just completed her car loan last December and also has a Mobile as well (no cards or anything else). I think we are ok on the mortgage affordablilty as we can get a max mortgage for £144,000 on our income (Minus my car payments) and the mortgage is only for £90,000. Also we have no CJJs or anything like that.

Fingers crossed then. Also as a side question are student loans concidered, I have a student loan from the SLC which is taken away each month from my wage. The advisor said it will not count, but I am just concerned as I haven't offically declared it on the application.

Thanks

Conrad

If the SL shows on your payslips, the lender will pick it up.

437 is low for an individual wanting a mortgage, but your other half will help offset this to an unknown degree.

2bFrank

Thanks for your advice, the loan is shown on my pay slip. I am presuming that the Student Loan counts as a outgoing for the mortgage.

What do the lenders do, add the two scores together and divide by two to get the average. I will get my missus to do a score tonight to see what she gets.

beecher2

The score's meaningless - each lender will use their own criteria.

mustang1

I had a late credit card payment from April 2010 on my report and I have just been approved by Woolwich so you may be ok (depending on who your lender is going to be). I may not have been so lucky if I was going with HSBC / First Direct.

paint

Don't worry about the 437 score from Equifax - I believe they use a different scoring system to Experian and Call Credit. I'm also in the 4 hundreds with Equifax (rated 'Good'), but am 999 with Experian.

I also had a couple of missed credit card payments, which I flagged to my lender, and they were fine about it, so I hope you won't have any problems.

sammy66

I presume different lenders use different credit references but do not Equifax and Experian etc hold the same details on everybody? How does it work? thanks Could Experian have different credit details on you to say Experian?

[Deleted User]

sammy66 wrote: »

Could Experian have different credit details on you to say Experian?

Yes they could. Not all lenders report to both (or indeed all 3) CRAs.
There's a been a few post recently of peple finding their Experian files are a lot thicker than Equifax.