Understanding credit scores in mortgage applications

Specialist brokers discuss credit scores and mortgage applications

Introducing Censeo Financial

Censeo Financial are an award-winning mortgage broker specialising in Shared Ownership and affordable homeownership. Having been trading for over 16 years, we work with many housing associations, councils and developers and have helped thousands of first time buyers get onto the property ladder. We have access to all lenders who offer Shared Ownership mortgages and often get exclusive deals that you wouldn’t get from going to a lender direct. We strive to offer the best service possible and to find our customers the best mortgage for their personal needs saving time and money.

Understanding credit scores

A credit score is a numerical representation of an individual’s creditworthiness. Your credit score is like your financial CV.

The score is a picture of you as a credit risk to the lender at the time of your application. Suppliers and lenders will use it to verify your identity and gauge your credibility. It measures how likely an individual is to repay debt as agreed. In simple terms, credit scores reflect how financially trustworthy a borrower is.

A credit score is usually a three-digit number that helps lenders, such as banks and credit card companies, assess the risk of lending money to someone, and the interest rate you are charged for this credit.

Credit scores are based on various factors, including payment history, amounts owed, length of credit history, new credit, and types of credit used. It also checks if you are registered on the voter’s roll at the address you live.

A higher credit score generally indicates that a person is more likely to repay their debts on time, making them a lower risk for lenders. Generally, credit scores range from 300 (poor credit) to a maximum of 850 (exceptional credit).

A good credit score can make it easier to qualify for loans, get better interest rates, and access other financial opportunities.

It’s important you maintain this score so make sure you maintain credit payments and limit applying for new credit as this can impact your mortgage application.