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  • FIRST POST
    • michaels
    • By michaels 5th Jan 18, 11:56 AM
    • 20,826Posts
    • 96,413Thanks
    michaels
    Advanced Credit Score Management Prior to Remortgage
    • #1
    • 5th Jan 18, 11:56 AM
    Advanced Credit Score Management Prior to Remortgage 5th Jan 18 at 11:56 AM
    I am due to remortgage in about April so am sorting out my credit record now. It is generally clean but I am a little heavy on recent applications (telecoms, mobile and utility switches and credit card applications) and available (credit card limits) credit.

    I tend to take advantage of Amex intro offers. Where I am currently in this cycle means I have several Amex on the go with a large overall credit limit.

    Some I have now completed the intro offer and so could either close or reduce the credit limit to reduce my available credit or leave alone.

    Reducing the credit limit might make it look like I was only offered a low limit.
    Closing in conjunction with the recent searches (some accounts have only been open a few months) might make it look like I applied but was turned down.
    Doing nothing leaves me with lots of available credit.

    Which are mortgage lenders most likely to be concerned about?
    Cool heads and compromise
Page 1
    • kingstreet
    • By kingstreet 5th Jan 18, 12:06 PM
    • 33,575 Posts
    • 18,212 Thanks
    kingstreet
    • #2
    • 5th Jan 18, 12:06 PM
    • #2
    • 5th Jan 18, 12:06 PM
    Probably neither.

    I'd leave well alone.

    Unless you have a high loan to value and/or previous historic adverse most applications don't need such micro-management.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • michaels
    • By michaels 5th Jan 18, 2:56 PM
    • 20,826 Posts
    • 96,413 Thanks
    michaels
    • #3
    • 5th Jan 18, 2:56 PM
    • #3
    • 5th Jan 18, 2:56 PM
    Probably neither.

    I'd leave well alone.

    Unless you have a high loan to value and/or previous historic adverse most applications don't need such micro-management.
    Originally posted by kingstreet
    Thanks

    I was slightly concerned as my most recent mse credit report had shown a small reduction in 'score' on the basis of having too much available (not utilized) credit.

    Is it worth my while paying off the 0% car finance as it seems from the calculators that max mortgage borrowing is reduced by more than the outstanding finance amount. LTV is below 35% so that is not a factor.
    Cool heads and compromise
    • Thrugelmir
    • By Thrugelmir 5th Jan 18, 3:02 PM
    • 58,972 Posts
    • 52,296 Thanks
    Thrugelmir
    • #4
    • 5th Jan 18, 3:02 PM
    • #4
    • 5th Jan 18, 3:02 PM
    Lenders using their own internal scoring systems to assess your application. They obtain raw data sets from the CRA's and run algorithms across it. Being commercially sensitive their scoring methodology isn't published. Nor does it remain static.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • kingstreet
    • By kingstreet 5th Jan 18, 3:30 PM
    • 33,575 Posts
    • 18,212 Thanks
    kingstreet
    • #5
    • 5th Jan 18, 3:30 PM
    • #5
    • 5th Jan 18, 3:30 PM
    If your affordability is affected by having finance, simply note the finance is "to be repaid on or before completion" and this will satisfy most lenders.

    There are only a couple who want something repaid at least three months before you apply, Santander and Platform. Otherwise they will continue to include them in affordability.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
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