how accurate mortgage in principle

Jo1923

hi, i don’t know if worrying unnecessarily- just had mortgage in principle agreed, 51% LTV - i answered all the questions honestly - no defaults , late payments etc …i have a credit card upto the limit 0 percent, and i took a small loan out in nov but paid off in january when unexpectedly had a bonus and sold house quickly, due to the upto limit CC and loan my experian took a nose dive to fair , like i say answered all questions honestly but she didn’t ask about actual credit score …we are going to proceed with the mortgage application , i onow the in principle is only. guide - but how often do they then get rejected??

ACG

There is no such thing as a credit score. Mortgage lenders do score your application, but not using the number on the credit report. They have their own way of doing it. 

They are generally pretty accurate. If you give the right information and provide it as requested then they are accurate. If you provide something incorrectly then maybe not. As an example, I speak to people who say they are on maybe £40k a year. What you sometimes find is that is £30k and £10k bonus or overtime. That might be viewed differently to £40k basic. 

Chances are you will be fine. 

Jo1923

thanks , i thought they would look at experian and go what the hell is she doing 😂😂  i think it’s the maxed CC and loan application  ( loan now payed off ) which dropped my score , maybe by the time the application goes through it may go up again ….she had my pay slips , etc and all the affordability is fine - so fingers crossed 
thanks for the reply 

DullGreyGuy

Jo1923 said:

thanks , i thought they would look at experian and go what the hell is she doing 😂😂  i think it’s the maxed CC and loan application  ( loan now payed off ) which dropped my score , maybe by the time the application goes through it may go up again ….she had my pay slips , etc and all the affordability is fine - so fingers crossed 
thanks for the reply 

Experian once offered a 150 point bump if you completed a questionnaire for them, goes to show why no lender uses their scores but instead takes the data and makes their own decisions. 

The will be able to see the maxed out CC is on 0% and will make up their own mind on what they think of that. 

Personally would say the "in principle" isnt very accurate but ACG clearly has vastly more experience in this field than me, I just have 2 data points but in both cases there were problems... in the first case we got an in principle agreement for a flat/maisonnette but on application got told there was a limit on flats that was less than we'd asked to borrow. We then switched to another provider who equally gave a positive decision in principle but on application we were asked to pay down a chargecard (which is odd as a chargecard has to be paid in full every month anyway) otherwise they wouldn't lend. 

ACG

DullGreyGuy said:

Jo1923 said:

thanks , i thought they would look at experian and go what the hell is she doing 😂😂  i think it’s the maxed CC and loan application  ( loan now payed off ) which dropped my score , maybe by the time the application goes through it may go up again ….she had my pay slips , etc and all the affordability is fine - so fingers crossed 
thanks for the reply 

Experian once offered a 150 point bump if you completed a questionnaire for them, goes to show why no lender uses their scores but instead takes the data and makes their own decisions. 

The will be able to see the maxed out CC is on 0% and will make up their own mind on what they think of that. 

Personally would say the "in principle" isnt very accurate but ACG clearly has vastly more experience in this field than me, I just have 2 data points but in both cases there were problems... in the first case we got an in principle agreement for a flat/maisonnette but on application got told there was a limit on flats that was less than we'd asked to borrow. We then switched to another provider who equally gave a positive decision in principle but on application we were asked to pay down a chargecard (which is odd as a chargecard has to be paid in full every month anyway) otherwise they wouldn't lend. 

The first example was down to the property rather than yourself by the sounds of it - different property and you would have been fine. 

The second is one of those reasons why underwriters are sometimes given bad names. Its not unheard of for them to make mistakes or have silly requests. Easy enough to prove though as like you say, it would have happened at some point anyway within a month. 

Jo1923

i perhaps need to stop focusing on experian then ….its become a bit of a obsession !