Credit rating drop after paying off mortgage

Too_Hairy_Husky

Hi guys - we are considering changing our mortgage product from a 70% LTV with the Woolwich to an 80% LTV rate also with the Woolwich. I spoke to the Broker at L&C yesterday and said they may re-score us (she's just waiting to hear back).

I know there are mixed opinions on Experian and the like, but I checked both mine and Husband's just now - mine has dropped slightly but is still within the excellent bracket. Husband's has dropped like a stone and is now Fair.

The only change on either account is that we have paid off our old mortgage after selling our house back in January.

Does anyone know if the Woolwich would look at the circumstances or just the numbers?

Thank you

Let_Us_See

Redeeming your mortgage is unlikely to have a negative affect on your credit - look elsewhere for the reason.

I am a little confused as you claimed you paid off your mortgage, yet want to change from a 70% to an 80% LTV? Therefore, I assume you have found another property to buy and thiswill require an 80% LTV mortgage? If so, then the Woolwich will treat as a new mortgage with full underwriting.

Too_Hairy_Husky

Yes - sorry - we sold and moved out in January with a mortgage "promise" on another house that is causing us a very large headache!

The Broker suggested it could be that we were no longer on the Electoral Roll?

Let_Us_See

Not really. Not being on the electoral roll is a nuisance rather than a deal stopper - after all, I imagine you were on the register at your previous address? Ask your broker to stop "suggesting" and find out why. I still believe the reason is elsewhere.

ValHaller

Let_Us_See wrote: »

Ask your broker to stop "suggesting" and find out why. I still believe the reason is elsewhere.

I agree. Spend £2 and look at the detail of your credit record for yourself. And don't give any credence to the so-called 'credit score'