Your cookie preferences

We use cookies and similar technologies. You can use the settings below to accept all cookies (which we recommend to give you the best experience) or to enable specific categories of cookies as explained below. Find out more by reading our Cookie Policy.

Select cookie preferences

Skip to main content
Utrack

Popular Search Terms

<Mortgage guides

Your guide to mortgages and credit scores

Laura Hamilton Headshot

Whenever you apply for credit, your chosen lender will look at your credit score. Mortgages are no exception and, in fact, often have the most stringent lending criteria. This is due to the large loan size compared to other forms of borrowing.

Your credit history plays an important part in the mortgage application process

Lenders will almost always request to look at your credit history when deciding whether to offer you the money you need to buy a house. It shows how reliable you’ve been when repaying your financial agreements in the past. 

Having a good credit score can significantly benefit your mortgage application. It can lead to better interest rates, a wider choice of products and access to higher loan-to-value mortgages. 

How does a credit score work when it comes to mortgages? 

Your credit score is a number based on positive and negative factors in your credit history. Positive actions, such as being registered on the electoral roll at your current address, can contribute positively to your score. Conversely, negative actions like missing credit card payments, will likely lower it.

There are three main credit reporting agencies (CRAs) in the UK: Experian, TransUnion and Equifax. Each CRA maintains its own credit file on you and uses their own scoring system. Whilst their methods are broadly comparable, don’t be too surprised if there are variations in your scores across different organisations. 

When you apply for a mortgage, lenders will obtain your credit report from each of the major agencies and combine them to develop their own credit overview. They use this information to assess the risk of lending to you.

It’s, therefore, useful to know and understand all of the information credit reference agencies hold about your prior to applying for a mortgage. A strong credit history can boost your chances of mortgage approval and could even secure you more favourable interest rates.

Check your credit rating

Looking for a mortgage? Get a clearer idea of your credit score before you apply.

Get a copy of your credit report

What is the minimum score needed to get a mortgage?

There isn't a single minimum credit score that guarantees mortgage approval across all lenders.

Generally, a higher score gives you a greater chance of being accepted than a lower score, but it’s a lot more complex than that. Lenders often take into account the severity of any negative marks, how recent the negative factors are and the total amount of your debt. 

While less common, some specialist lenders may take a more holistic view of your financial situation, placing less emphasis on your credit score. However, you may find you’ll be offered higher interest rates or asked to put down a larger deposit to secure a mortgage with them. 

How does a mortgage affect your credit score? 

A hard credit check will almost certainly be conducted once you submit your mortgage application. This can cause a slight and temporary dip in your credit score, though it usually won’t be a problem unless you send several full applications off to different lenders in a short space of time (which is not recommended). 

Looking long-term, consistently making your mortgage payments on time can positively contribute to building and improving your credit score. On the other hand, though, missed mortgage payments can significantly harm your credit score so it’s very important to make sure you keep up with your repayments.

Are you mortgage ready?

When you work with our broker partners, Mojo Mortgages, they’ll check your eligibility to match you with the most suitable lender. They’ll even offer tips on ways to strengthen your mortgage application!

Find my mortgage

How to improve your credit score before you apply for a mortgage

Some credit issues are seen as far worse than others. For example, having a single missed payment to a mobile phone company is unlikely to mean your mortgage application is refused, whereas multiple recent CCJs for missing secured loan payments will be more problematic. 

It’s a good idea to look at your credit reports in detail before you apply for a mortgage, as this can help you identify any areas that could be an issue, and give you an opportunity to fix them. 

Here are a few simple steps you can take to improve your credit score:

  • Make your repayments on time to prove you’re good at managing money

  • Make sure you are on the electoral roll at your current address 

  • Look to reduce your credit card utilisation ratio to around 30%. So, for example, if you have a ÂŁ5,000 limit on your credit card, you would want your balances to be below ÂŁ1,500

  • Remove financial association with others that you are no longer linked to (for example, an ex-partner who you may have shared a bank account with) 

  • Check the accuracy of all of the details held about you. Incorrect addresses and other details can cause an issue, but there can also be inaccuracies with what the agencies have recorded as a negative mark. If you can prove that a late payment was not your fault, for example, due to postal strikes or an accounting issue at the creditor’s end, you can sometimes request to add a note to your file to explain this

  • If you’re concerned you have limited credit history, you could consider taking out specific credit cards designed to build your credit score. However, you must use it sparingly and pay it back in full (and on time) to prove that you can handle debt responsibly

Jason McDonaldquotation mark
If you’re looking for more immediate ways to boost your credit score, it’s a good idea to correct any errors on your credit report and ensure you're on the electoral roll. However, significantly improving your credit score usually takes time as you’ll need to show consistent responsible financial behaviour. Don’t let this dishearten you, though - there’s no better time than right now to start to make positive, proactive changes! ”
Jason McDonald, Mortgage Expert

FAQs

Will I still be able to get a mortgage with bad credit?

Don’t worry - having a poor credit score, or limited credit history, doesn’t mean you’ll never be able to get a mortgage. 

You may need to apply with specialist lenders, as mainstream ones may be a little more cautious. To offset the risk, these niche lenders may need to charge higher interest rates or ask for a larger deposit.

What other factors will a lender consider when looking at my mortgage application?

Lenders look at all sorts of things when deciding whether to offer you a mortgage. This includes your income and outgoings, deposit size, employment history, age, address history and the type of property you want to buy. 

While your credit history does play a big part in a lender’s decision, they consider plenty of other factors too. That’s why it’s so important to work with an experienced mortgage broker who can recommend the most suitable lender for you and your circumstances.

Will checking my credit report hurt my chances of getting a mortgage?

No, it won’t. Checking your own credit report won’t leave a visible mark on your file and won’t damage your credit score. That’s why it’s a good idea to check it every six months or so, or before you’re about to apply for credit. 

It can be really beneficial to understand what information is detailed on your credit report. Errors, inaccuracies or even typos can be problematic, so it’s worthwhile getting these sorted before applying for a mortgage. Just contact the lender or credit reference agency to raise any issues. 

YOUR HOME/PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.

The FCA does not regulate mortgages on commercial or investment buy-to-let properties.

Uswitch makes introductions to Mojo Mortgages to provide mortgage solutions. Uswitch and Mojo Mortgages are part of the same group of companies. Uswitch Limited is authorised and regulated by the Financial Conduct Authority (FCA) under firm reference number 312850. You can check this on the Financial Services Register by visiting the FCA website. Uswitch Limited is registered in England and Wales (Company No 03612689) The Cooperage, 5 Copper Row, London SE1 2LH. Mojo Mortgages is a trading style of Life's Great Limited which is registered in England and Wales (06246376). Mojo are authorised and regulated by the Financial Conduct Authority and are on the Financial Services Register (478215) Mojo’s registered office is The Cooperage, 5 Copper Row, London, SE1 2LH. To contact Mojo by phone, please call 0333 123 0012.