Getting a mortgage with fair credit score of 736

Senior_Paper_Monitor

I probably see double figures of credit reports a week - most of which have 'scores' attached.

At a guess something like 60% of these reflect the quartile I would expect the client to be on with an 'average lender' (if there is any such thing). Experian's match is probably nearer 30-40% !!

What an experienced broker does is look at the data and:
1) discount any lenders where an item (default for x amount within x months etc or 'time in jobe etc) fall outside published criteria
2) use past experience (and the few titbits we pick up from underwriter and/or Business Development Manager meetings and discussions) to select a lender whose individual algorithms are most likely to be 'friendly' to the circumstances.

For instance - if the OPs lowish score was a result of simply little credit activity (apparently not the case) I can think of 2 lenders in the high LTV market place might be more receptive than most. I can also think of several who we wouldn't consider.

I can think of one 90% case we have going through with similar score at the moment (in their case because of limited credit activity) but I would not expect the OPs circumstances (on the limited info provided) to be as acceptable despite the very similar score.

Simon_gloster

But the overall experian score is one if many many factors taken into account. If the score is very poor, then other elements balance it out ie marital status, time with bank to name 2 of maybe 100 point scoring replies to an app

Senior_Paper_Monitor

Sorry Simon but 'the score' from Experian (or anyone else) is NOT taken into account in any way - 'the score' is not seen by the lenders, the data is and that is applied, with the other factors you refer to, to the individual lender's algorithm on which any lending decision is made.

dunstonh

But the overall experian score is one if many many factors taken into account.

Not a single lender uses it. It is an internal score to suit experians views. not a lender.

lawriejones1

The confusing nature of all of this doesn't help many people - it makes people more confused!

The logical step for anyone in this is to contact a mortgage broker and discuss it with them. Ask trusted friends and relatives for a personal recommendation and don't pay for their advice.

Goldiegirl

Prior to being on MSE, I was aware that you could get a credit score from Experian, but what has suprised me is the level of obsession and angst that surrounds this.

The lender has it's own credit score - that is what you need to pass to get your mortgage. It doesn't matter whether you are a 999 or a 736. What matters is what the lender's system decides you are.

Incidentally, even within the bank or building society the algorithm is a closely guarded secret. If it was general knowledge, a rogue mortgage advisor could take advantage of this and key an application to fit the needed criteria.

By all means use Experian for information, but don't rely on it as guideline to whether or not you'll get a mortgage.

Dave_Ham

lawriejones1 wrote: »

The confusing nature of all of this doesn't help many people - it makes people more confused!

The logical step for anyone in this is to contact a mortgage broker and discuss it with them. Ask trusted friends and relatives for a personal recommendation and don't pay for their advice.

I think this is dependent upon circumstances, remaining mindful that you get what you pay for.

Typically if someone is having to get involved worrying about credit scores/files, then they may need to pay to get a effective solution.

Take the point about referrals, always best to get a personal recommendation.

Goldiegirl summarises the credit file issue perfectly. The information is used by the lender into their own algorithms, the score is completely irrelevant.

whitescarf

Dont read anything into the credit score!! - my husband has just been discharged from bankrupcy, the bankrupcy is on his experian report, and yet experian still give him a 999 credit score!! - they are completely meaningless and should be ignored. Only read the information supplied on ALL THREE reports and ignore the score!