Arghhh Credit score reduced just before mortgage deal ends :(

keeno

Hi all

I have had a really rough couple of months with my finances and the pressure of trying to get them sorted. I have really being trying to get my score up and have not applied for any additional credit and have not missed any payments. To be honest it has been a very long time since I missed a payment anyway, the only thing effecting my score was current debts and applications that I never took any further.

Here is a list of my previous scores :

840 (29/03/2008)
931 (20/02/2008)
931 (12/02/2008)
840 (25/12/2007)
780 (01/11/2007)





As you can see my most recent has reduced to 840

The only thing that has changed on my credit file is a new monthly contract with three mobile (saving me a fortune after pay as you go). I was advised that this would not effect my score.

So now I have went from a good credit rating to fair. Anyone shed some light on this? and what are the chances it will have a detrimental effect on my hunt for a good mortgage deal in April. I really thought I was getting on top of things, I am hoping this has not set me back too much???

Thanks in advance for any replies

MarkyMarkD

These online credit scores are irrelevant nonsense.

Each lender evaluates customers using its own scorecard. One lender might care about things that have changed in your history; others may not.

The only way to know whether it's a problem for a specific new lender is when they accept or reject you.

Anyway, if you stay with your existing mortgage lender but switch products, you won't get re-underwritten. So that's always a fallback plan if you cannot remortgage - indeed, it should be your first consideration, as it's far less effort. Check what your existing lender will do for you first.

grogdog

from what you say keeno you shouldnt have a problem, but as the previous post says different lenders will look at cases different, i have done cases recently were c&g accepted the case on an adverse deal and abbey accepted it on normal rates with no evidence of income required.

keeno

Thats interesting. Should I go through a broker to negotiate with my existing lender (bank of scotland) or approach them myself? Will they do a new credit search or will they go by my previous history with them?

Thanks for the reply

MarkyMarkD

A broker won't help you with your existing lender at all. Talk to them direct.

But also get a broker to advise where else you should go, and compare the two deals.

sarkin

Yes get a broker they will find you the best deals 99% of the time

keeno

Im with the bank of scotland at the minute and the rates they have on their website are not too hot.

I currently owe £120000 on my house that is worth £200000, a 5 year fixed mortgage without fee's is working out at 783.10 a month, that is compared to £615.53 i am currently paying. I think I may have to look at another lender.

herbiesjp

You should be fine with a re-mortgage assuming your income is high enough to support the mortgage and any other debts you may have.

I'd move pretty quickly if you see a deal you like, as lenders are still extremely nervous about funding and liquidity and increasing their interest rates with little or no notice

liney

Well once upon a time O2 wouldn't give me a contract phone! I was intrigued and concerened that something was amiss on my credit file and checked it out, along with my credit score which turned out to be 999.... so what i'm really saying is, it's a load of old codswallop and don't worry about it. Companies have their own criteria.

keeno

Hi guys

thanks for the replies. Im going to move as fast as I can, im getting really anxious about the way the market is heading at the moment. Im very tempted by the 10yr fixed deal on offer with barcleys. At least it would be piece of mind.

herbiesjp is see that you are a morgage advisor. Ive just started a new job so getting time of to see an advisor here is going to be really difficult. How much can be done via the internet + phone? Ive used the same broker twice and want to stay with him but meeting up will be a real pain so im hoping I can deal with him that way.

herbiesjp

YOu can do everything over the internet/phone if you want to, as long as your broker is geared up to work that way.

I think I now conduct most of my business this way, whereas a year ago it was probably the other way around