Knowing what a credit score consists of is the first thing. All mortgage lenders have their own credit score which designed to capture business which fits their lending profile.
The exact methodology is secret but we know that in broad brush terms the score is arrived at by considering the following;
However, scoring varies amongst the banks and Building Societies and and there are many additional sources of information that are weighted differently between mortgage lenders.
If you are a well paid, self-made business person you might have more wealth than your neighbour but if your income relies on self employment you might find yourself getting less points than you might expect. Lenders like stability and they generally equate that with long term employment.
Taking into account all of the above, it may surprise you to find that having a mortgage actually increases your credit score, especially once a few years of regular payments have gone by and more especially if your home’s value is growing. Your mortgage becomes an asset, in credit terms at least.
If you need to check your credit history consider contacting one of the major credit agencies like Equifax, Experian or Call Credit - or view this short video for more information.
For more information contact us or speak to a mortgage adviser on 01628 507477.
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