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Vanilla prime?
282820
Posts: 21 Forumite
Can someone explain what this refers to in mortgage lending?
Thanks
Thanks
0
Comments
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Squeaky clean credit low risk mainstream lending.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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I have no missed payments, defaults, ccj's etc yet my credit score is not great according to experian as they say I have quite high credit commitments and 2 searches in the past 3 months. My score with equifax is average.
Presumably I would not be classed as low risk?0 -
I have no missed payments, defaults, ccj's etc yet my credit score is not great according to experian as they say I have quite high credit commitments and 2 searches in the past 3 months. My score with equifax is average.
Presumably I would not be classed as low risk?
Credit scoring is set by each individual lender, not the credit reference agencies. Having credit commitments can work in 2 ways. Managed debts with no issues will help credit scoring as it demonstrates an ability to manage debt. However if the credit is high in relation to your income then it can have a detrimental effect.
Having no credit commitments will mean a lower score as no proof of ability to handle credit. It is a catch 22 situation.
Each application is different but high levels of debt will cause issues with most lendersI am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
About 10k of unsecured debt but as I said no missed payments at all. I am very, very careful to make sure that I never miss a payment or go over limits.0
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If you have access to rolling debt (credit cards, flexi loans etc), and high balances and credit limits on these facilities - then although you are meeting and have met your monthly repayments, the underwriters/lender may feel that your access to further credit (post completion), may leave you struggling to maintain your payments, and them over exposed if your finances become streched.
Try and reduce your borrowings, which may improve the score you achieve with a lender. (as will a low LTV).
Hope this helps
Holly0 -
Actually I have just looked again and it's around 8k according to equifax.
The mortgage I have applied for is only 25%ltv but it is shared ownership.0
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