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Over-the-top credit scoring is causing everyone distress

I was intrigued to read the responses to the news that more than a fifth of adults could be prevented from getting a mortgage (Mortgage Strategy Online).

I agree with most of the comments posted regarding the tight credit scoring of certain companies. We have had several good cases turned down by one lender recently, only to find that the clients have been accepted by that lender’s parent company.

Both clients had a high credit score and good jobs, with only a small amount of credit card debt. Overzealous credit scoring by some lenders is a joke and is causing distress to clients and brokers.

The broker industry must name and shame these lenders and support those that are ditching credit scoring and employing underwriters.



UK to investigate fraud claims at Goldman Sachs

Goldman Sachs is to be investigated by the Financial Services Authority following accusations of fraud by the US Securities and Exchange Commission. The US financial watchdog has filed a civil suit against Goldman Sachs for structuring a sub-prime residential mortgage-backed secu-rity with hedge fund Paulson & Co, with the fund shorting the securities involved in […]


UK growth drops to 0.2%

The pace of economic recovery in the UK has slowed with gross domestic product rising by 0.2% between January and March.

Go to societies for loan flexibility and the personal touch

I write in response to the story that Legal & General and Hanley Economic are offering a two-year deal with no credit scoring. The reality is that medium to small building societies like the Hanley Economic have been doing this for decades. But the trouble is that the intermediary market always looks to big lenders […]


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