I haven’t mentioned it for a while, but it certainly is causing a lot of customers an issue. Credit scoring! This is an assessment on all available financial information and calculates a ‘score’ for the lender. It also includes a search on your overall credit history covering, in the main, all of your financial transactions over the last six years.
Most lenders credit score applications to try and assess your ability to repay any loans. This will take in to account many factors including the amount of credit you have, whether you are on the electoral role, your recent payment profile on any existing credit and the number of recent credit searches you have on file. Nearly all financial institutions will register a credit search against you. So, if you have recently updated your car insurance, home insurance, taken out a mobile contract and just got a new credit/debit card, that’s probably four searches in a short amount of time! Be wary that some ‘comparison sites’ may have also searched you just whilst seeking a new insurance quote.
If the lenders computer says ‘no’, you will tend to find most high street lenders doors shut to you. But fear not, if you have a reasonable deposit and can prove all income, there are lenders who do not credit score, but will manually review and underwrite affordable applications on an individual basis.
I always suggest that you speak to an independent mortgage broker with access to whole of market mortgages. Banks may only advise on their product range. Estate Agents ‘in-house’ mortgage advisers may only be able to offer mortgages from a select panel of lenders. Therefore, in order to get best advice, make sure you do your homework, speak to a whole of market mortgage broker who can advise on the most appropriate mortgage in the market to meet your requirements, whether this be with a credit score or just a credit search.