A credit check for a buy to let mortgage is standard practice amongst most lenders. It might suit the majority of applications, however some applicants may simply have extended themselves too far, been through a divorce or had some other life event impair their credit score without incurring any actual major adverse credit. These applicants are unable to approach a high street buy to let lender for a mortgage, however a specialist no credit score buy to let lender will consider their case as a business proposition fully taking into account their circumstances, history and rental income before making a decision.
Types Of Applicant Who Benefit From A No Credit Score Mortgage
- Some adverse credit from a while ago
- Patchy previous address history
- High level of existing debt
- Need flexible underwriting by a human instead of a computer
- Unique old fashioned underwriting
- Difficult to prove income
Credit scoring has its place but complex prime cases are not always catered for by this approach. There are many reasons why an otherwise creditworthy borrower might generate a low credit score.
Ditching credit scoring is an innovative, back to basics way of looking at lending
Martin Smith, head of mortgages at Legal & General
What Choices Are Available?
The problem faced by many borrowers is that they can find a no credit score lender amongst the many smaller building societies who have yet to invest in credit scoring systems. However, many of these apply what are in fact considerably more stringent underwriting to their cases than the lenders who do credit score. Lenders such as Marsden building society (who at the time of writing have no credit scoring system) are a prime lender not looking for the types of applicant who would consider themselves to need a no credit score buy to let mortgage.
Luckily there are some innovative, broker only lenders, such as Aldermore Bank who can not only consider applicants who don’t want a credit score on their buy to let mortgage but those who have some minor issues on their credit file. They can take a sensible view on past problems and help landlords raise finance when other lenders would turn them away.
Older applicants and those looking for higher loan to value mortgages will often struggle the most when faced with credit scoring as those are major negative factors. Not only does Aldermore not score but they offer 80% buy to let mortgages and can look at applicants as old as 85 years old at the end of the mortgage term. Their flexible approach can be seen right across their product range.
If you need some advice on whether a no credit score buy to let mortgage is right for you then fill in the short enquiry form below and one of our advisers will be happy to help with quotes and information.