Credit score and mortgage

DE5T1NY

Here is another part of the 2nd quote:

Mortgage lenders in the UK tend to use three credit agencies; Experian, Equifax and Callcredit. Each of these agencies use different scoring systems, and each one has different ‘minimum’ requirements. Experian, for example, score you out of 999, and a credit score of 700 or above is considered good. If you have a credit score of 800 or over, your credit score is considered excellent. Equifax score you out of 700, and a score of 475 and above is generally considered good. Callcredit bases your credit score out of five, with five being the best and one being the worst. The closer you are to 5, the better.

So like my advisor and lender both state in my case (maybe not others): Your creditscore does count when it comes to getting a mortgage/loan.


Reason both held off on the "hard search" for over 4 weeks.


Update:


This might be of some use:

If however you have a low score, it's not the end of the road for you. Smaller and specialist lenders will ignore credit scores and instead look at the overall merits of the application, if you have, for example, bad credit, they may still lender if there is a reason behind it or the problem is now resolved.

[Deleted User]

That quote just tells you that CRAs produce credit scores, which you already knew.

They're still not provided to or used by lenders.

sambaird

DE5T1NY the way to look at it is like this...

1. You apply for a Mortgage.
2. Mortgage company checks your credit file with the CRA agencies and scrapes all of the financial history data.
3. They input this history into their internal credit risk models and maybe they give you a score. If it meets their risk appetite, they might accept you. If it doesn't they will decline you.

What they don't do is this:

1. You apply for a mortgage.
2. The Mortgage company checks your credit file with the CRA agencies and receives your "credit score number" that the CRA agencies have worked out based on your history.
3. Depending on how high this number is they may or may not approve your mortgage.

Lenders DO NOT base their decisions on the numbers that are shown to you by CRA agencies.
Is that simple enough for you?

DE5T1NY

Hello sambaird


Thanks, that sounds a lot better.

[Deleted User]

As already explained (and ignored) in the previous 2 pages of this post.

If your advisor/lender thinks that lenders look at CRA scores then you need to find new ones who know what they’re talking about.

I don’t know how much your mortgage is for, but I know people with low 300 “scores” who get approved for £300-£400k mortgages.

DE5T1NY

None of the last 2 pages have been ignored, actually two or more posts have helped me get a better idea how this all works.

Examples

They're still not provided to or used by lenders.

After reading this information above, I did some research and came across this: (think the bold type below is what the top quote means)

The three credit reference agencies, Experian, TransUnion and Equifax, have individual ways of scoring you, meaning the numbers you see may be different for each one.
Interestingly, lenders don't see this score at all - it's just for you. The score you see reflects what's actually in your file, which is what lenders will look through when you apply for a credit product.

Did a recheck of my earlier "quote" posts and noticed they came from a UK credit card website, so not sure if they give a true account of the facts you and others were trying to explain.

Once again without this thread I'd be sitting without a chance of getting my granddaughter her dream house.

Thanks Everyone

[Deleted User]

The first quote is from Investopedia, and American website.

The second one is from some 2-bit mortgage “advisory” website that looking through I would never use or trust.

Oh and if the mortgage is in your name the house doesn’t belong to your granddaughter.

Just for clarities sake.

DE5T1NY

Investopedia, and American website

came up as investopedia uk on goggle, my fault for not spotting the mistake.

The second one is from some 2-bit mortgage “advisory” website

so simply ignore these sites, same genuine advise can be said about the misleading quote below for a Finance Limited website.

What lenders see when they check your account:

By running a credit check on your file, the lender will receive your credit score, which ranges from 0 (very poor) to 999 (very good). This score or ‘rating’ gives lenders a number that they can work with and they can accept customers based on their scores or allocate different interest rates accordingly.

As for granddaughter she's only 6 years old at the moment (adopted at birth).


So hopefully this sale will go through as planned, but if not I'll seek more advise/help here first before planning another house buy, bet you can't wait. :beer: