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Poor credit score due to available credit
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Raybeans
Posts: 6 Forumite
Hi all,
Our house it currently up for sale and we will be paying off all debts with the equity from the sale and should have a decent deposit. The problem is that my credit score is showing as poor on Experian, but there is only one negative factor: The usage of your available credit indicates a higher risk.
We have already been turned down a mortgage in principal and don't want to apply for another in principal for the searches to show on the credit report. It's frustrating as we will be paying off all debts in full when we sell up. :mad:
My question is do any mortgage lenders take this in to account before making a decision, or do they always go off the credit score?
Many thanks in advance to anyone who may be able to answer.
Our house it currently up for sale and we will be paying off all debts with the equity from the sale and should have a decent deposit. The problem is that my credit score is showing as poor on Experian, but there is only one negative factor: The usage of your available credit indicates a higher risk.
We have already been turned down a mortgage in principal and don't want to apply for another in principal for the searches to show on the credit report. It's frustrating as we will be paying off all debts in full when we sell up. :mad:
My question is do any mortgage lenders take this in to account before making a decision, or do they always go off the credit score?
Many thanks in advance to anyone who may be able to answer.
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Comments
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Lenders treat this situation different and some are friendlier to high unsecured debt usage than others.
Engage a mortgage broker and let them do the work for you.
Good luckI am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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 -
Who turned you down?
Yorkshire BS Group, by any chance?I am a mortgage broker. You 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. Please do not send PMs asking for one-to-one-advice, or representation.0 -
kingstreet wrote: »Who turned you down?
Yorkshire BS Group, by any chance?
Hi there. It was Nationwide, but there is a search on my file from Yorkshire.0 -
Nationwide don't like high levels of unsecured credit v income and being at, or over card limits etc. What's generally viewed as over-commitment.
I've never known them have an issue with unused credit, where YBS definitely has.
How do you have a YBS search if you've never applied to them?
What's the loan to value?I am a mortgage broker. You 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. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Thanks for that.
I only noticed the Yorkshire search today and have no idea. It states application type: Identification: Generic Check, so maybe this wasn't a so called hard search. We had a financial advisor, but they didn't mention Yorkshire to us. Will have to chase it up.
LTV is aprox 84%0 -
Yorkshire Building Society, or Yorkshire Bank?
TBH neither takes business from brokers, although NAB's other UK arm Clydesdale does, as does YBS Group member, Accord.
If you have an independent broker working on this, leave them to come up with some alternatives for you.I am a mortgage broker. You 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. Please do not send PMs asking for one-to-one-advice, or representation.0 -
kingstreet wrote: »Yorkshire Building Society, or Yorkshire Bank?
TBH neither takes business from brokers, although NAB's other UK arm Clydesdale does, as does YBS Group member, Accord.
If you have an independent broker working on this, leave them to come up with some alternatives for you.
It was YBS.
Thanks for the advice.0 -
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Thrugelmir wrote: »Are you downsizing? Or in effect consolidating debt by increasing the size of the new mortgage.
Hi,
We're upsizing. With the equity from the sale we're planning to pay off any debts which should leave us with roughly a 16% deposit.0 -
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