Credit Check vs Credit Score - why the computer doesn’t always say no!

Posted on 29 March 2017

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Well it’s almost Easter already, and as it’s time to consume the vast amounts of chocolate eggs and generate the sugar rush, that will be required to keep our energy levels up, as one of the prime periods for people to contemplate  buying a / moving home is now here. And if it’s your first home, then mixed in with all that excitement is a great big dollop of fear, trepidation and fair bit of anxiety too!

Mortgage Score Mortgage

For those would be home owners that don’t have the sizeable fiscal backing of the “Bank of Mum & Dad” and have somehow scraped together that precious 5% deposit, it’s a nervy time, when having found your dream home, beaten off the competition and had your offer accepted, you now need to arrange your mortgage. There’s so much choice out there, with many lenders offering free valuations, cashbacks to cover your stamp duty, no arrangement fees, to name but a few, as they  try and snap up your business. So now having decided on a lender (probably the cheapest rate), the big worry is will you get a thumbs up, or will you hear that dreaded phrase “the computer says ‘no’!” Luckily these days its couched in slightly more consumer friendly terms, but the message is still the same, you can’t have the mortgage you need, and you also have a brand new footprint on your credit file.

Many of the large high street lenders are still totally reliant on you passing the credit score card and affordability calculations that at the higher loan to values (LTV’s) are much harsher and severe than they are if you’re putting down a deposit of say 40%. So it’s no wonder that it can often seem like a lottery, when trying to choose which lender is likely not just to lend to you, but also to lend you what you actually need, however, all is not lost, there are lenders who take a more sympathetic view. These lenders “credit check” rather than “credit score”, and with some of them, we brokers can still speak to an actual underwriter about each individual case, with Clydesdale being an excellent case in point. They “credit check”, and we have dedicated underwriter access, as well as lending at 95% up to £500,000.

A good number of the regional building societies can also be found in this category, and are far better equipped than their larger automated rivals to meet the needs of 95% market. 

This is a point in your life when you really need someone on your side, to make sure that you get the right deal, and get it right first time to boot. That’s what we do.

For more information please call us now on 0344 346 3672 or submit an enquiry here

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Categories: Mortgages, First time buyers


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