View more on these topics

Finlay re-elected

David Finlay

Brokers say scores from credit rating agency Experian are misleading potential borrowers by rating them as ‘excellent’ when their credit history shows otherwise.

Firms say clients are obtaining ‘excellent’ ratings from Experian when they may end up being turned down for a mortgage, due to factors such as defaults or county court judgments.

Perception Finance managing director David Sheppard says: “Experian should be held to account on this. It creates a false sense of hope in clients’ minds as to their creditworthiness and if Experian cannot grade people correctly then it should stop providing a score, unless it is prepared to lend to these people based on its scores.

“People assume their credit scores will cover their entire credit history and to provide something other than that is somewhat misleading.”

Trinity Financial product and communications manager Aaron Strutt says: “People with 10 missed payments in the last year have been given perfect credit scores, which clearly should not have happened.

“It is a bit of a minefield because lenders all use different credit rating agencies and use these scores as a benchmark.”

A spokesman for Experian says: “The Experian Credit Score is an excellent guide to how a typical lender will assess someone’s credit report and we make this very clear on our website. But it is only a guide. The scores cannot be used as a guarantee that a consumer will be approved for a mortgage.”



Number of mortgage products available up 37.5% in a year

The number of mortgage products available has increased 37.5 per cent in the past year, according to Mortgage Advice Bureau. Using data from, MAB says there were 12,032 products available in November compared to 8,748 a year earlier. This is the first time since MAB began tracking the figures, in April 2009, that the […]


Marketwatch – The Big 100

I find myself at a bit of a milestone – this is my centenary Marketwatch column, the big 100, and I couldn’t have timed it any better coming at the end of another year of hard graft for brokers and lenders alike. What is most pleasing, apart from the fact I have not lost quite […]

Mark Lofthouse Mortgage Brain

Mark Lofthouse: Mind the LTV rate gap

Current research into mortgage product data has revealed that the gap between the interest rates at different LTVs for the same type of mortgage is continuing to rise – and in its most extreme case, has more than doubled. But what’s the story behind the figures and what does it mean for borrowers?  Every quarter, […]

UK policy: Kate Moss and short-termism

“Nothing tastes as good as skinny feels,” said supermodel Kate Moss, who is not often credited for her insights into policy making. Perhaps she should be. In politics, as in matters of diet, the course of action that is the best over the long term is often not the most desirable course of action in the short term. Add the instant gratification of the democratic electoral cycle and, instead of good policy making, you sometimes get the equivalent to a midnight binge in front of the fridge.

Read more

Important information

Investment risks

The value of an investment and any income from it can fall as well as rise and you may not get back the amount originally invested. Forecasts and past performance are not a guide to future performance. Some information and statistical data herein has been obtained from sources we believe to be reliable but in no way are warranted by us as to their accuracy or completeness. These are Neptune’s views and as such this document is deemed to be impartial research. We do not undertake to advise you of any change to our views.


News and expert analysis straight to your inbox

Sign up