Cleared mortgage now score dropping

robti

Hi cleared off my mortgage a month back and have noticed that my credit score has dropped with the above being cited as the cause, just wondering if this is correct?

TheMilkmansDad

Well yes. But the score don't mean a thing so nothing to worry about.... it's just a marketing gimmick and has no bearing on anything. As long as whats in your credit file is correct then nothing to worry about.

Brie

Depends on the type of mortgage.  I have one that looks like a huge overdraft.  Having cleared that makes potential creditors nervous as I have too much credit available.  But that's obvious on my credit history.  My credit score isn't looked at by anyone but me.  

CliveOfIndia

Yes, this is correct.  As is stated on here time and time again, your score will drop in reaction to any change in your credit circumstances - whether good, bad, or indifferent.  Proof, if any were needed, that it means nothing.

And, as has already been stated by other posters, your score is only visible to you, lenders can't see it (they use their own internal systems to score you internally, this will bear no resemblance whatsoever to the score dished out by the CRAs).

All other things being equal, lenders will now view you more favourably as you have less outstanding debt, simple as that.

molerat

I had similar, cleared a massive stooze and score dropped.  According to Equifax I also need to monitor the fact there is no mortgage showing on my report - I thought mortgages were only for people who don't own their house

Nebulous2

molerat said:

I had similar, cleared a massive stooze and score dropped.  According to Equifax I also need to monitor the fact there is no mortgage showing on my report - I thought mortgages were only for people who don't own their house

I'm the same. It is listed as a factor requiring attention that I don't have a mortgage.