Minimum Credit Score for a Mortgage in the UK
Is there a minimum credit score for mortgage in the UK? In this expert guide we go through everything you need to know.
Is there a minimum credit score for mortgage applications?
There is no minimum credit score for mortgage applications as such. Each lender will have their own way of assessing your credit and will view things very differently.
The score you get on a credit refencing agency such as Checkmyfile, or experian will not be the score a lender looks at usually. The lender will more often assign you a score of their own, based on the information on your credit file.
This therefore means that you can usually get a mortgage in most situations. If you have a lower credit score however, due to defaults, CCJ’s, IVA’s etc. You may need to put a larger deposit in to get the same purchase price.
When you are ready to apply for a mortgage, we are happy to let you get in touch with a mortgage expert.
Can you get a mortgage with bad credit?
Getting a mortgage with bad credit may seem like an impossible task. However, it is still very possible to get a mortgage with bad credit. As there is no minimum credit score for mortgage applications and lenders look at your credit history from their own view.
This means a default may reduce your credit score on Experian for example by several hundred points. However, a lender may be willing to ignore it if it is small, or happened a long time ago.
So whilst your credit score with Experian, or Equifax for example, may be lower, the default may not have as much impact on your mortgage application as you expect.
Can you get a joint mortgage if one person has bad credit?
Getting a joint mortgage when one person has bad credit might seem impossible. This may not be the case. The same rules apply as with any bad credit, and whether you can get a mortgage will depend on:
- How long ago it was
- What it was for
- Is it settled/satisfied
- How much it was
- How much deposit you have
These rules tend to apply when looking at getting the minimum credit score for mortgage applications. You should be able to get a mortgage if you have a large deposit. Even without a big deposit smaller adverse credit may still be acceptable.
Can I get a mortgage with a 600 credit score?
You can potentially get a mortgage with a 600 credit score. You should absolutely speak to a specialist to see what your options are. Poor credit scores do not mean you cannot get a mortgage. However you may need to look at a specialist lender when you apply for a mortgage or when buying a house.
What credit score do mortgage lenders use?
Lenders will use one or more of the three big credit referencing agencies to look at your credit history. These are Experian, Equifax and Transunion. However, they don’t tend to look at the score that the credit referencing agency has given you.
They are more interested in your credit report and the activity on it. For example if you have had very good credit behaviour since your default or CCJ, you may be viewed better by a lender. However, if you have missed payments since your adverse history, this may show that you are still struggling financially.
Lenders will review your credit history and take everything into account when assessing your application.
How to get a mortgage with bad credit
There are several steps and below we break them down. But if you have bad credit the first one should probably be to speak to a specialist mortgage broker. The last thing you need when applying for a mortgage is to apply to the wrong lenders over and over as this may also affect your credit score.
- Get a credit report (We recommend Checkmyfile)
- Speak to a specialist Mortgage Broker that can help you get the right mortgage for your situation.
- Don’t apply for lots of extra credit. Often it is not better to get a credit card just before applying for a mortgage as every credit search done on your credit file may bring down your overall credit score.
- Make sure you are registered on the electoral register – This helps lenders identify you.
- Keep your credit balances as low as possible.
Why should I check my credit score before applying for a mortgage?
You should always check your credit score before applying for a mortgage. It is really important to know what is on your credit report before you make any applications.
You have a few to choose from, and each will usually have the same information available. Checkmyfile shows you the three main credit referencing agencies, and lenders will use one of those three usually to check your credit history.
What information do credit reference agencies have?
- Account information – They will have a section on your current and previous accounts that you have held. This information will also include whether you have kept up with repayments and any other relevant information. Such as if the account has defaulted, or whether it has been closed.
- Electoral Roll – If you are registered to vote it will show this, and what address you are registered at.
- Public Record – Any CCJ’s, IVA’s, Debt relief orders etc. can be found on your credit file.
- Associated people – Anyone that may have had a financial association with you. For example, someone that you have held a joint bank account with.
If I meet a minimum credit score will I be accepted for a mortgage?
Just because you have met the minimum credit score for mortgage applications, doesn’t mean you’ll be accepted.
When lenders are assessing your affordability they will look at more than just your credit score in order to decide whether to lend to you. Your entire application will be assessed to see whether it is something they are comfortable lending with.
Can I get a mortgage if I’ve been declined because of a low credit score?
If you have been declined by one lender due to a low credit score you may still be accepted by another. It is really important to speak to a specialist mortgage broker to discuss your options so that you don’t have too many credit searches on your credit file.
Even a mortgage in principle can potentially involve a hard credit search showing to other potential lenders that you have applied for credit. Lenders may ask if they see this type of application on your credit file and why it did not go ahead.
By speaking to a specialist mortgage broker you should remove the guess work from a minimum credit score for mortgage applications. They should be able to guide you in the right direction for your best hope at getting accepted.
How can I get something wrong on my credit report removed?
If you have checked your credit report and feel something is wrong, you can contact the credit referencing agency. Quite often they will direct you to the person or company that has reported incorrectly.
If the company has reported something incorrectly to the credit referencing agency they should correct it for you.
Do all credit reference agencies use the same scoring system?
Credit referencing agencies will each use their own system to create a score. Generally lenders don’t use these scores either. Most lenders will be looking at your account conduct and account information that the credit referencing agency are using, not the number itself.
However, the score does give you an indication of what it looks like to a lender. So it is certainly a good way of seeing how a lender may view you.
Got a question we haven’t answered? Get in touch and we’ll answer it and likely add it to this article to help others!
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