Buying a home is one of the biggest purchases you’ll ever make, and while credit scores are usually the starting point of a mortgage journey, we’ve gone through our data to find that actually, having a ‘bad’ credit score has no correlation to whether you are actually mortgage ready!
This is great news for potential buyers, and once fully up and running, our new MortgageScore™ service will be really handy for those who want to understand how to increase their ‘mortgage-readiness’ to get on the property ladder.
A customer’s score is calculated out of a thousand, and those who score 400-500 are deemed as ‘mortgage ready’, although, they may have to go down a specialist lending route as they are towards the bottom of the scale.
Those who score over 501 will be able to access a wider range of lenders, while those who have a score of 399 or below will be offered tailored coaching via the service’s MortgageCoach™ to help them increase their scores. The ‘perfect’ score for someone looking to buy is 600.
But, where in the UK do people have the best mortgage score, and the worst? We undertook a study to analyse the ‘mortgage-readiness’ of 4,000 homebuyers across the UK. We found those who live in Nottingham are the most mortgage ready, whilst those who live in Wolverhampton are the least – meaning that that they have the worst mortgage score in the country.
As part of MortgageScore™, customers will be given guidance on how to improve their score, and improving the score means that it’s more likely customers will get a better offer from a broader range of lenders.