Getting a mortgage with fair credit score of 736

hanney1980

We have the 5% deposit and the government scheme and have been told we only need a 75% mortgage.

Dave_Ham

I am sorry, but you are going to need to be more specific if you want anywhere near helpful opinion.

A default of £51 5 years ago is going to be easier to overcome than a default of £7,000 13 months ago.

Please detail the specifics and will be able to give useful opinion.

As it stands I think your advisor is correct and you have no chance.

Abu-Dina

Experian scores are not totally worthless as long as one understands that the algorithm used to calculate the over-all score maybe different to the ones used by lenders.

Dave_Ham

Abu-Dina wrote: »

Experian scores are not totally worthless as long as one understands that the algorithm used to calculate the over-all score maybe different to the ones used by lenders.

If one understands the algorithm (which incidentally no-one does as every lender scores the information in different ways) then what use is the score

Abu-Dina

Dave_Ham wrote: »

If one understands the algorithm (which incidentally no-one does as every lender scores the information in different ways) then what use is the score

I'm sure you know about these things more than me but what I said was that one needs to understand the algorithms are different, not understand the maths behind it.

Experian might give you 200 points for being registered on the electrol roll but some lenders might give you 0 points if registration date is less than 3 years etc... But that doesn't make the score worthless surely? If anything it gives one a rough idea of their credit worthiness? Or am I still wrong?!

dunstonh

Abu-Dina wrote: »

I'm sure you know about these things more than me but what I said was that one needs to understand the algorithms are different, not understand the maths behind it.

Experian might give you 200 points for being registered on the electrol roll but some lenders might give you 0 points if registration date is less than 3 years etc... But that doesn't make the score worthless surely? If anything it gives one a rough idea of their credit worthiness? Or am I still wrong?!

Just ask anyone with a 999 score who cannot get a mortgage how valuable it is.

R_P_W

Abu-Dina wrote: »

I'm sure you know about these things more than me but what I said was that one needs to understand the algorithms are different, not understand the maths behind it.

Experian might give you 200 points for being registered on the electrol roll but some lenders might give you 0 points if registration date is less than 3 years etc... But that doesn't make the score worthless surely? If anything it gives one a rough idea of their credit worthiness? Or am I still wrong?!

Yes you are still wrong. The scores are useless

GMS

Abu-Dina wrote: »

I'm sure you know about these things more than me but what I said was that one needs to understand the algorithms are different, not understand the maths behind it.

Experian might give you 200 points for being registered on the electrol roll but some lenders might give you 0 points if registration date is less than 3 years etc... But that doesn't make the score worthless surely? If anything it gives one a rough idea of their credit worthiness? Or am I still wrong?!

Easiest way to show how pointless the score is with regards to a mortgage application:

Score of 999...........what could possibly go wrong?................

At no point does a credit search mention income...............

Score of 999 with no job/income would mean no mortgage. The 999 score would be useless.

Simple!!

Dave_Ham

Abu-Dina wrote: »

I'm sure you know about these things more than me but what I said was that one needs to understand the algorithms are different, not understand the maths behind it.

Experian might give you 200 points for being registered on the electrol roll but some lenders might give you 0 points if registration date is less than 3 years etc... But that doesn't make the score worthless surely? If anything it gives one a rough idea of their credit worthiness? Or am I still wrong?!

Whilst I understand your logic, you are off track I am afraid.

The Experian algorithms are flawed as they weight things differently to lenders and as GMS says no use of income, visa/permit details, deposit, payday loans inconsistent applications and lack of credit history is another big one. The automated scores kills a score on limited credit history, whereas many lenders do not..

Abu-Dina

GMS wrote: »

Easiest way to show how pointless the score is with regards to a mortgage application:

Score of 999...........what could possibly go wrong?................

At no point does a credit search mention income...............

Score of 999 with no job/income would mean no mortgage. The 999 score would be useless.

Simple!!

Sure, but as you guys always say in this forum, a mortgage application is a jigsaw puzzle made up of several important pieces one of which is the credit score. A missing piece like income/affordability can stop a mortgage application but from what you're saying it sounds like you want the credit score part to include everything which doesn't make sense.

However, I do take your point (and Dave) about the score being misleading. Not sure if it's possible but a company the size of Experian can have some developers come up with better more intelligent ways to weigh the credit information so they give more accurate credit worthiness scores.