It is one of the first things people search when they start thinking about buying, and the honest answer surprises a lot of them. Here is how credit scores really work for UK mortgages, what lenders look at instead, and what you can do to improve your chances before you apply.
This is a collaborative post.
Quick answer: what credit score do you need for a mortgage?
There is no minimum score. UK lenders don’t see the number on your credit app; they run their own scoring using the detail in your credit file. A higher score usually means a cleaner file, but people with missed payments or defaults still get mortgages with the right lender.
Why is there no single “mortgage credit score”?
The UK has three main credit reference agencies, Experian, Equifax and TransUnion, and each uses its own scale. Experian scores run from 0 to 999, Equifax from 0 to 1000 and TransUnion from 0 to 710. A score that looks “fair” on one could look “good” on another.
More to the point, a lender never sees that number. When you apply, the lender pulls your credit report from one or more agencies and feeds the details into its own scorecard, along with your income, your outgoings, your deposit and the property. Two lenders can look at exactly the same file and reach different answers. That is why a decline from your bank doesn’t mean every lender will say no.
What do lenders actually look at on your credit file?
They want to see how you have handled credit in the past, especially over the last six years. In practice they look at:
- payment history: any late or missed payments, and how recent they are
- defaults and county court judgments, including whether they have been satisfied
- how much of your available credit you are using
- how many applications you have made recently
- whether you are on the electoral roll at your address
- links to anyone you share finances with
Recent problems weigh more than old ones. A missed payment from five years ago, followed by a clean record since, is read very differently from one last month.
What counts as a “bad” credit history?
There is no fixed line. For a high street lender, one or two recent missed payments might be enough to decline. For a specialist lender, a default or a CCJ that is a couple of years old and has been paid off may be acceptable, sometimes at a slightly higher rate or with a bigger deposit.
What matters is the type of problem, how much it was for, how long ago it happened and what you have done since. A small default for a phone contract is treated very differently from a large unpaid loan.
How can you improve your credit file before applying?
Start by checking all three of your credit reports, because they often differ. You can see them for free; MoneyHelper’s guide to checking your credit report explains how to get each one. Then work through this list:
- Get on the electoral roll at your current address.
- Correct any mistakes, such as accounts you don’t recognise or old addresses.
- Pay everything on time from now on; set up direct debits for minimum payments.
- Bring credit card balances down so you are using less of your limits.
- Avoid new credit applications in the months before you apply for a mortgage.
- Close old accounts you don’t use, unless they are your longest-running ones.
- Remove financial links to an ex-partner if you no longer share finances.
None of these is a quick fix, but a few months of steady behaviour can make a real difference to how lenders read your file.
Can you get a mortgage with bad credit?
Often, yes. Specialist lenders exist specifically for people whose credit history isn’t spotless, and some mainstream lenders are more flexible than their reputation suggests. The trick is matching your file to the right lender first time, because every full application leaves a hard search on your record.
That is where a broker who works with adverse credit every day helps. A Little Mortgage Advice explains what lenders look at and how they approach these cases at https://www.alittlemortgageadvice.co.uk/bad-credit-mortgages/, and can usually tell you whether to apply now or wait a few months for better options.
What should you do first?
Check all three reports this week and fix anything that is wrong. After that it is mostly patience: pay on time, keep balances down and get advice before you make a full application.
Your home may be repossessed if you do not keep up repayments on your mortgage.
A Little Mortgage Advice is a mortgage broker based in South Benfleet, Essex, helping first-time buyers and people with a poor credit history. A Little Mortgage Advice (FCA reference 1006474) is an appointed representative of The Right Mortgage Limited, which is authorised and regulated by the Financial Conduct Authority.