Question about Credit Score and Mortgage

gibbers

Hi,

I have a question and hoping someone can help ease (or maybe not) my mind.

I owned a property about 6 years ago and had to sell it due to the end of a relationship. Since then i have been renting with my current partner and am ready to get another mortgage.

I went onto noddle on the advice of a friend and it gave me an initial rating of 3/5 which seemed a bit low considering i have never missed any payments on credit cards/loans.

Upon finding this i paid for the premium version (since searching on here it looks like i shouldn't have) and it says my score is 580 the only reason it tells me that its low is because i have only been on the electoral role for 2 years.

I am now really worried that this will affect my mortgage application, and its something that i have no control over.

Does anyone know how much they look into your credit rating, i.e will they see that all my accounts are in credit and up to date?

Thanks

kingstreet

You do not have a credit score.

No-one in the UK does.

Stop payig for the stuff being peddled by the CRAs as it's bunkum.

A lender has its own scorecard and checks your overall application data against that card and if you "score" enough, you pass.

Not enough, you fail.

That's the extend of "credit scoring" in the UK.

Plenty of Experian's 999 brigade get turned down, for having no job perhaps...?

gibbers

OK i am really confused now, i have spoken to my broker about this and he said the low score is an issue as some lenders will just reject you straight away.

I have shown him the full report and there is nothing on there wrong, no missed payments, i have a credit card i always pay off and its not got much on it.

How can these companies dictate your "score" when they have no basis on which to mark it down?

Is there anyway i can contact the company and ask for it to be reviewed?

kingstreet

It's only the lender's score on the day that matters, not what a CRA decides it is to market its service.

Any decent broker will know which lenders to choose and which to avoid based on each client's circumstances.

I don't know any decent broker with the slightest interest in knowing Experian think you score 827 Fair, or whatever.

BTW there are plenty of non-scoring mortgage lenders used by experienced brokers all the time.

gibbers

Hi,

Thanks for the reply.

My broker did say he could u non scoring lender but the rate may be a bit higher.

Im just frustrated i have a low score with no reason, there should be someone you can complain to !

kingstreet

There are those with good credit.

There are those with no credit.

There are those with bad credit.

You'll be in one of the above groups.

How a lender will "score" you will depend on your previous history with credit use, that's why people are advised to use a credit card for their everyday expenses and pay it off in full each month so no interest is paid.

Other issues, such as time at address, being on electoral roll, length of employment, amount/percentage deposit etc also contribute to your score with a particular lender.

Never having had credit is not an automatic decline by a scoring lender, depending on the rest of your application data.

ACG

I think your broker is full of rubbish - you have no negative comments on your credit report bar not being on the voters roll for 6 years.

I dont think that is enough in itself to stop looking at the high street just yet.

I agree with Kingstreet you do not have a credit score.
Every credit scoring lenders looks at your credit report AND your application form and then scores your application. If it hits the threshold, great on to the next step. If it doesnt you look elsewhere.

But credit agencies do not hold information such as your income, occupation, length of time in a job, income, expenditure etc etc - and all of that is taken in to account to some degree.

gibbers

Thanks for all the advice guys, i have been approved in principle now so that has taken a big weight off my mind.

amnblog

Halifax by any chance Gibbers?

gibbers

Nottingham