As mortgage brokers who specialise in adverse, bad credit, poor credit scores, lack of credit history and so on, one of the things we have in our arsenal are Mortgage lenders who do not credit score.
There are quite a few lenders who do not credit score and they cover various parts of the market, from those who have no bad credit at all, to those who have a handful of defaults last month and everything in between.
None credit scoring mortgage lenders are not necessarily more expensive than the high street banks, they may be specialist lenders or small building societies. They do what is known as manual underwriting and they will look at the application as a whole.
You may have someone who is a first time buyer, always lived with mum and dad, has a bank account and nothing else as they have never needed credit. Because of their lack of credit history, they may not pass the scoring mortgage lenders apply when assessing an application. You could have someone who has moved around a lot and has lived at several addresses over the last 6 years, a good example here could be someone in the armed forces or a pub manager.
Neither have done anything wrong, but because of work, they may have moved a lot. With the non credit scoring lenders they will take a look over everything – bank statements, payslips, we can give them an explanation and pre-empt the likely questions and concerns an underwriter will have and get a lender on board before applying.
Using the examples above, you may also have a some bad credit – defaults or CCJs, if you move a lot, the paperwork may have been sent to a previous address and you had forgotten about it. Chances are we would not have the same lenders available as above, but it does not mean it can not be placed. We just need to show that it was a mistake and explain how the bad credit markers came about.
Who are the non credit scoring lenders?
They vary from relatively well known names to companies you may never have heard of.
All are fully regulated and authorised by the FCA, they are not loans from Dave and his mates who will come knocking with a big dog and baseball bat if you do not pay.
They are typically smaller lenders who take the personal approach. Because of that rates are normally competitive but depending on the circumstances, they could be higher. The process is also a little longer. Banks have their processes in place to cater for the masses and to be pretty slick in the main. Non credit scoring lenders take the opposite approach, you are not just a number, the underwriter wants to know you much more and understand why you have come to them.
Where does Mortgage Success fit in?
We use these lenders regularly. We know how they work and what they are looking for. Our job is to “package” your case up. By that we mean, we will check everything and raise any questions with you before applying. The idea there being that your application is more likely to be accepted and if we pre-empt any issues and put notes on, it shows we have done our job (which makes the underwriter more comfortable) and saves time.
There is nothing worse than going back and forth and waiting days for a reply. It adds to the stress and anxiety and it holds things up. We want to avoid that as much as possible. We will not always be perfect, but we will do our best to make it as painless as possible.
Get in touch, give us a try and test us out. See how we do 🙂