high credit rating?

raspberryrippl3

Hi guys

Bit of an odd one this, but hope one of you knowledgeable types knows more than me!

I've just done an experian report, and scored 980 which I understand is a relatively high score. With this information, do I have any bargaining power when applying for a mortgage? Or is it just a case of "you'll get what you'll get"

cheers!

[Deleted User]

No. Your score means nothing and is not seen by anyone apart from you.

Lenders will score you according to their own criteria.

raspberryrippl3

straightforward enough. thankyou!

cakeforbrains

Your only bargaining power is the ability to shop around to get the best rates on offer at the time.

The score that Experian (or Equifax, or Call Credit) give you will never be seen by the lender. They'll see the details of your report and they will run those through their own systems (with its own set of preferences) to result in an accept or a decline. Different lenders have different criteria, but these aren't published in full.

When it comes to loans, if you've got a nice clean credit file you may find that you'll be offered the headline rate, whereas people with less desirable files might be accepted but offered a higher rate. With mortgages, as far as I am aware, it's up to you to choose and apply for the product with the rate you like.

Credit reference agencies create these numerical scores to keep things simple for the customer (you). They want you to buy into their monthly product and entice you by suggesting ways to improve your number. Some of these measures are perfectly reasonable, while others probably won't affect whether any particular lender accepts or declines. Focus more on the details of your report, such as if any late payment markers have been placed, as these will be the things that turn lenders off.

Other things that will increase your chances of getting the best available mortgage rates are having a low Loan to Value (ie. a large deposit) and sometimes having a current account with the lender you're applying with.

raspberryrippl3

brilliant, thanks cakeforbrains!