How Do Credit Scores Affect a Mortgage Application?

Monday, June 27th, 2022

This is a question many people ask when enquiring about a mortgage and the importance of getting and maintaining a good credit score consequently remains a hot topic amongst those looking to make an application.

Tracking Your Credit Rating

In the belief that the score provided by a credit reference agency is indicative of their chances of securing a mortgage, an increasing number of people subscribe to one of the many credit reference agencies to keep an eye on their credit report and to track how their credit score is progressing.

Although a higher credit score from a credit reference agency can certainly be an indicator of potential success when seeking to obtain a mortgage, it should be noted that many mortgage lenders have their own internal “scorecards” when assessing an enquiry.

Not All Mortgage Lenders Use Credit Scores

That said, not all mortgage lenders use credit scores to assess applicants. Some still rely purely on the ‘old fashioned’ method of a manual assessment to decide whether they are happy to provide a mortgage given the circumstances of the individual application.

For those mortgage lenders that do use them, many will use different techniques when they assess ‘credit score.’ Furthermore, some lenders also place a stronger emphasis on certain factors, and this can be particularly challenging in the case of customers with complex or unusual circumstances meaning it can prove difficult for applicants going directly to a lender to predict how they may react.

What Affects Your Credit Score?

Various factors that can affect the outcome of a credit score assessment include (but are not limited to):

Although other factors, such as property type and construction could have an impact on the outcome, these are likely to be the ones that will have the biggest influence on any decision.

How Can a Professional Mortgage Broker Help?

Given mortgage lender’s embedded criteria regarding their decision making it is hardly surprising that many applicants chose to use the services of a professional mortgage broker that will first thoroughly assess all the pertinent information and then, following extensive research using a comprehensive range of mortgage lenders, provide recommendations as to the most suitable mortgage option(s).

If you would like to read about what our clients think of the first-class service they have received from us, please check out our testimonials page, HERE.

With all that in mind and wherever you may be on your property journey, if you would like some no-obligation mortgage advice tailored to your individual circumstances and requirements, please call us here at Caboodle Financial Services of Sutton Coldfield, Birmingham on 0121 308 9114, or alternatively, just complete the enquiry form HERE and one of our specialists will be in touch.

We look forward to hearing from you.

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Your initial consultation is free and you are under no obligation to proceed with a mortgage we recommend. There will be a fee for mortgage advice. The exact fee will depend on your circumstances and may be reduced depending on the loan amount and any commission we receive from the lender. It is estimated that the fee will be £595, but it may range from £495 to 1% of the amount you borrow. The fee is only payable on completion and can normally be added to the mortgage. This will be discussed and agreed with you before you make an application. Please ask for a personalised illustration.

Secured loan rates from 3.95% APRC, although we have plans available up to 29.9% APRC which allow us to assist customers with the most severe credit problems. The overall cost for comparison is 7.65% APRC. There will be a fee for secured loan advice and the exact fee will depend on your circumstances. The fee is only payable on completion and can normally be added to the loan. A lender fee may also apply. The actual APRC available will depend on your circumstances. All loans are subject to status. Please ask for a personalised illustration.

The guidance and/or advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK.

Caboodle Financial Services Ltd, registered in England and Wales at Mere Green House, 46-48 Mere Green Road, Sutton Coldfield, West Midlands B75 5BT (number 08044670).
Caboodle Financial Services Ltd is an appointed representative of PRIMIS Mortgage Network (PRIMIS), a trading name of Advance Mortgage Funding Ltd which is authorised and regulated by the Financial Conduct Authority. PRIMIS is only responsible for the service and quality of advice provided to you in relation to mortgages, protection insurance and general insurance products. Any other product or service offered by Caboodle Financial Services Ltd may not be the responsibility of PRIMIS and may also not be subject to regulation by the Financial Conduct Authority. The Financial Conduct Authority does not regulate some forms of Buy to Let.

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