Low Credit Score

As a consequence of the financial crisis, lenders have significantly tightened their credit scoring procedures and anyone with anything other than an impeccable credit history will find their choices severely limited.

When you apply for a mortgage or want to remortgage, lenders will check your credit report, so any blemishes will negatively affect your credit score and increase the chances of you being turned down. If you have previously fallen into difficulty paying a mobile phone or utility bill, missed repayments on a loan, had CCJs issued against you or have been declared bankrupt, you credit score is likely to be adversely affected which in turn will jeopardise your chances of being accepted.

Each lender has it's own scoring model and they tend to keep the details of these secret, but they will usually attribute points for being in long term employment, your marital status, age, number of children, how long you have held any current debt and whether you are on the electoral roll.

A low or poor credit score can mean mortgage lenders fail to take you seriously and you may have already been declined, rejected or turned down for a mortgage by a high street lender. As many as one in four Britons would be turned down by a mainstream mortgage lender because of having a poor credit score.

Most of the high street banks and building societies use automatic credit scoring to assess prospective borrowers when they apply for a mortgage. If an applicants' score does not meet their minimum lending criteria, the lender can turn them down.

If you suffer will a low credit score it's important to get expert advice to ensure you are approaching lenders who are more likely to assist. A specialist mortgage broker will know which lenders are more accommodating of people with a poor credit score and will advise you on what your options are. Complete our enquiry form to receive free, no obligation advice.

The range of mortgage products available to people with a poor credit score is limited and the range of options will depend on how bad your credit history is. For instance people who have missed mortgage repayments in the past are seen as less of a risk compared to customers who have been declared bankrupt.

Taking out and keeping up the repayments on a mortgage can help to rebuild your credit score, making it easier to get finance in the future.

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