90 LTV exceptional credit report.

Betty2012

I keep hearing it is hard to get these mortgages without and excellent credit score versus an 85 LTV but what does that actually mean?

what is different between the two that someones hard check would allow and 85 LTV but not 90. Is it things like use of  over draft at all? 

I am confused as I have heard it several times and I am not sure what it means. 

K_S

@betty2012 Most lenders do something called a "credit scoring" when judging an application. Each lender does it differently and it is unrelated to the Experian/Clearscore/Credit karma credit scores.

This credit scoring takes into account multiple factors in your credit history (late payments, debt to income, recent hard checks on the report, financial associations, overdraft use, electoral roll, etc etc).

At 90% LTV lenders will usually require a higher internal "credit score" and may be less forgiving of issues that they might consider on an 85% application.

As an example, a lender might say in its criteria that applicants must have no late/missed payments in the last 2 years. For the very same applicants and application, at 85% LTV they may be willing to disregard 1-2 late payments with a good reason. At 90% LTV they may simply decline without considering.

Betty2012

Thanks that makes sense. Interesting.

claneyuk

As above
I have recently received a mortgage offer for a 90% LTV mortgage. My credit scores are all in the 'fair' range partly due to not having a mortgage already and using a large percentage of my available credit on credit cards (around 48%). However everything else is pristine on my credit report and I have a high income which looks favourable in terms of affordability.