Credit checks in the 6 months before mortgage application

luiza8

I've been going through my credit report, and the report mentions that its a good idea not to have any credit applications in the last 6 months before a mortgage application. Thats fine.

When I try to get an agreement in principal, my broker will do a credit check on me so they have an accurate idea of what can be offered. Surely this can't be detrimental to my credit score?

MovingForwards

They mean loans/credit card/other finance applications.

Your broker should only go for a DIP/AIP after going through everything with you and you being happy to try for the DIP/AIP with a view to full application going in when you have an offer accepted on a property.

MovingForwards

Ps the credit score is irrelevant in the UK and just a number, financial institutions do not see it or use it as they have their own internal guides.

luiza8

Thank you for your reply!

Why does the broker want a copy of my credit report if the lenders don't use it and have their own requirements? I thought they would at least weight the credit score in some way, but you're telling me it's unweighted?

Thanks

MovingForwards

Because a broker will go through it to check for defaults, late payments, missed payments, payday loans, CCJs, bankruptcy etc and put you with a suitable mortgage company.

No point putting your application through a company who won't accept someone with late payments.

Or someone with perfect credit history and apply through a mortgage company that only deals with adverse credit history.

sully1311

luiza8 wrote: »

Thank you for your reply!

Why does the broker want a copy of my credit report if the lenders don't use it and have their own requirements? I thought they would at least weight the credit score in some way, but you're telling me it's unweighted?

Thanks

Don't get credit score and credit report mixed up.