Excellent credit scored but poor credit affortability for a mortgage application

Lookingforamortgage

After talking with Nationwide and Halifax and give them all my income, and the mortgage advisor being optimistic about passing the first phase of the mortgage application.......
I was rejected after doing a soft credit check.
They did not know why

So I have checked my credit score and report in experian, and this is the result:
My credit score is 984 out of 999... excellent.
But Credit cards affortability is weak Why?
Loans affortability is good.

I have 3 credit cards but I just use 2.
My credit cards are always paid more done half of it (therefore the minimum payment is met) and in the last month I paid them both in full.
Another thing that I do is that i use my overdraft every month for some time then when income gets in I come out of it and take away to a saving account what is left and come into overdraft again. I do it because it is very cheap, experian shows an average of overdraft of £1200 a month..... is this affecting my credit affortability and therefore it leads to mortgage application rejection?

How can I improve the affortability for a mortgage application?

What is strange is that my credit scored is excellent 986, I thought that was enough.... it is clear I dont know how this works, but i want to learn


Thanks in advance

[Deleted User]

Your credit score is a made up number, as it the affordability score. They're not used in lending decisions.

A mortgage lender will only be looking at your credit history and commitments.

Check your three credit files to see if there is anything amiss. If not, it will simply come down to the lender's assessment of your affordability.

Make sure you clear your cards in full each month though.

BoGoF

Oh dear, using an overdraft (cheap or not) is not a good sign. Constant use of an overdraft suggests you are living beyond your means.

ACG

They score your affordability now?
Thats a new one on me.

What is wrong with "is it affordable?" "yes/no"? I have found that to work pretty well for the last 6-7 years.

Lookingforamortgage

Yes in Experian now you can see credit card affordability score and loans affordability, mortgage affordability coming soon.

answering to your question, is it affordable?
With an income of £3500 net a month and a mortgage repayment of £850, the mortgage advisor was very confident we were going to do the application right there. you should have seen his face when I failed to pass the soft credit check. He did not why it did not pass, and me neither.

Now I am learning what using the overdraft means, I did not see it that way. But i wonder if that alone made my affortability that low? How many months back are checked on a mortgage credit check?

[Deleted User]

Your credit files show your last 6 years of credit activity.

The emphasis that any given lender puts on certain factors will vary.

amnblog

Lookingforamortgage wrote: »

Yes in Experian now you can see credit card affordability score and loans affordability, mortgage affordability coming soon

More marketing nonsense.