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How To Check Minimum Credit Score For Mortgage?

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Shopping for a home? Thousands of people in the UK do it each year, but if this is your first time, or you haven’t bought a house in a while, you may feel overwhelmed. You probably have many questions, too – can you get a mortgage with bad credit?

How will it affect your credit score? Who are the best lenders for bad credit mortgages? How much does a loan affect your credit score in the UK? What credit score is needed for a mortgage?

These are all the same questions that almost all UK buyers have. The process of getting a mortgage is one of the toughest parts of buying a home, and there’s a lot of mystery surrounding it, especially if you’ve had some credit issues in the past. This guide can help you make sense of it.

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What Credit Score Do You Need for a Mortgage?

The minimum credit score to get a mortgage from a lender aimed at the average buyer is “good to excellent”. It’s hard to say exactly what credit score you’ll need, as each lender has their algorithms to rate buyers. For example, Halifax and Barclays have very different lending criteria.

While it is possible to have a great credit score and still be refused a mortgage, credit scores in the good to excellent range should get you the help you need to buy a home. Most lenders will require a fairly good credit score to get a mortgage.

How Is Your Credit Score Calculated?

Suppose you’re wondering, “What credit score do I need for a mortgage?” you know how important a credit score is. If you don’t, it’s essential to understand the relationship between a mortgage and credit score.

A credit score is a three-digit number that tells a lender how reliable you are when it comes to repaying your debts. It looks at the amount of debt you’ve had in the past and how regularly you pay it off. It also lists each outstanding balance you have, such as loans and credit cards, and any issues you’ve had, like late payments, defaults or CCJs.

Before speaking to a lender, you should check your credit report to learn more about your credit score. This can be done by pulling it from one of the major companies, or you can use an app like CheckMyFile.

This requires providing some information, like your contact number. If you find any mistakes on your credit report, you can deal with them by contacting Equifax online help or the other credit bureaus.

When you check your credit score for a mortgage in the UK, it’s important to understand the three categories lenders look for. These are fair, good, very good and exceptional. If your credit score falls in the fair category, it may be more difficult to get a mortgage than if you had an exceptional credit score.

However, interpreting the scores can be tricky, as the three major credit bureaus have different scoring systems. For example, a good score with Experian ranges from 881 to 960 and with Equifax, it’s 420 to 465.

How To Check Minimum Credit Score For Mortgage
Before speaking to a lender, you should check your credit report to learn more about your credit score.

How high does your credit score have to be to buy a house UK?

Wondering what a good credit score is for buying a house? You’re not alone. Most lenders prefer you to be in the “good” or “excellent” category on whatever credit bureau they use.

Remember, some lenders use more than one credit bureau, so if you have an excellent rating on any of those scales, you’re likely to get a good mortgage with a great interest rate.

If your credit score is just “good,” you’ll still probably get the loan, though the terms and interest rate may not be as favourable. With a “fair” rating, you may or may not qualify for the mortgage you want.

Pay attention to what influences your credit score. Probably the most important factor is paying your bills on time. Late payments will harm your credit, so if you want a great score, make sure to pay on time.

Additionally, have a good mix of credit, avoid maxing out your credit cards, and keep credit inquiries to a minimum. This will show lenders that you’re not looking for a loan all the time, but just a great mortgage for your dream home.

If you’re a new credit user, your credit score may not be great yet. That’s ok. Lenders are looking for evidence that you use credit responsibly over a long period. Keep paying your bills and don’t use up your credit lines, and you’ll build a solid credit score.

Mortgage lenders don’t just consider credit scores when making decisions. They’ll also look at your current income, how much you want to borrow, and your income history. These will help them determine your ability to pay back the loan.

Can You Get a Mortgage with Bad Credit?

Many people wonder if they can get a mortgage with bad credit. This is understandable, as the credit score is one of the main criteria lenders look at when evaluating a potential borrower. However, obtaining a mortgage with bad credit is not impossible. Several sub-prime mortgage lenders in the UK exist, but you will be paying higher interest rates.

Before applying for a mortgage, it is important to understand that while bad credit mortgages are available, they tend to come with higher interest rates and larger deposits than other kinds of mortgages. However, for those looking to re-mortgage their house, there are also bad credit re-mortgage products available.

First-time home buyers with bad credit may still be able to benefit from some of the perks normally associated with first-time buyers. It may just require a bit more searching to find the right lender.

The best option for those with bad credit is to work with specialist mortgage brokers. These lenders are experienced in helping those with low credit scores obtain mortgages. They can also find products that aren’t available to the general public.

So, can you get a mortgage with bad credit? Yes! There are lenders and brokers available that specialise in mortgages for those with bad credit. It may involve higher interest rates or a larger deposit, but it is possible.

Don’t waste time searching online; instead, reach out to a broker or lender to find out what options are available to you.

Can we get a mortgage if my partner has bad credit?

If you and your partner are looking to get a joint mortgage, but one of you has bad credit, you may still be able to get the loan you desire.

You may think it would be easier to only have the person with good credit apply for the loan, but that is not an option. Most lenders view this as a serious issue. If you are married or in a civil partnership, you have no choice but to apply for the joint mortgage.

The lender will look at both of your credit scores to make their decision. In some cases, it is easier to obtain a mortgage with two people, even if one has bad credit, as the lender knows that at least one of the applicants has the means to repay the loan.

Can You Get a Mortgage with a Default on Your Record
You can still get a mortgage, even with a default. Defaults stay on your credit record for six years.

Does a default affect mortgage?

If you have a default on your credit report, you understand it is having a serious impact on your credit score. You can still get a mortgage, even with a default. Defaults stay on your credit record for six years.

If it happened a long time ago and was resolved, a lender may still consider you for a mortgage. If it’s recent, the lender might ask for an explanation of what happened and what you’ve done to fix the potential problems. They could still make the loan if you have a good explanation.

Are There Mortgage Lenders that Don’t Credit Score?

Sadly, there are no mortgage lenders that don’t take credit score into consideration.

Credit score is an important indicator of how you’ve handled credit in the past, so most lenders use it as a factor when deciding who to lend to, though some lenders may weigh it more heavily than others.

Getting a Mortgage in Principle

If you’re concerned about your credit score not being up to par for a mortgage, you can chat with a lender to find out more.

Many lenders offer a Mortgage in Principle or Agreement in Principle, and NatWest even claims to be able to provide one in a matter of minutes. Other banks such as Barclays and HSBC also have similar options available.

This document is a soft credit check that allows the lender to gain some insight into your financial situation. It can be used to demonstrate to a potential seller that you have the right credit score to receive a loan. However, it does not guarantee that the lender will give you the mortgage.

Before you approach the bank for a Mortgage in Principle, make sure it’s something you can afford. Most lenders have calculators on their websites to help you decide if it’s a viable product for you.

For example, Barclaycard has a Minimum Payment Calculator that allows you to calculate the payments you would have to make for different mortgage amounts.

The minimum mortgage amount in the UK is usually around £50,000, but this varies from lender to lender. So if you’re looking to take out a small or large mortgage, make sure it’s something you can handle financially before you commit.

How to find the right lender
Remember that when a lender does a hard pull on your credit score, it can temporarily lower your score.

How To Choose A Mortgage Lender?

Finding the right mortgage lender to meet your needs is key. However, this is constantly changing, so it is important to do your research. If you are looking for a broker, you should look for one who surveys the entire market, not just a few lenders.

These are called whole market brokers, and they can offer you access to loans from many different lenders. You should look for a broker who offers direct-only mortgages, as these are only available through brokers.

If you have bad credit, you will want to find a broker who has experience in this area.

If you are looking at individual lenders, it can be helpful to search online to find the loan products and rates that best suit your needs. Remember that when a lender does a hard pull on your credit score, it can temporarily lower your score.

Therefore, it is best to limit the number of lenders you apply to. This is one of the reasons why working with a broker is such a great option. You can look at many different loans with just one application, and your credit score will not be affected.

Can you get a mortgage with bad credit?

If you have bad credit and it’s preventing you from getting a mortgage, the best thing you can do is work on repairing it. Even if it takes a while to do so, you can start by paying your bills on time and reducing the amount you owe on things like credit cards.

Additionally, make sure your name is on the electoral rolls and that there are no mistakes on your credit report, as those can have a big effect on your score. Doing all this will show lenders that you’re ready to take on a big commitment like a mortgage.

What is the minimum credit score for a mortgage UK
Even if you have had bad credit in the past or you aren't sure what your credit score is now, the best thing to do is to talk to a lender.

The Bottom Line

If you’re wondering how to get a mortgage, your first step should be to speak with a mortgage broker or lender. Having a mortgage in principle certificate can increase your chances of getting the home you want.

Even if you have had bad credit in the past or you aren’t sure what your credit score is now, the best thing to do is to talk to a lender. That way you can find out what steps you need to take to get the mortgage.

Can Bank of Mum & Dad Help?

Perhaps your Mum and dad can act as guarantors or gift you a deposit?

We are seeing a growing trend of parents giving away their inheritance by downsizing into a smaller property.

Are your Mum and dad looking to sell your house? We buy houses in any condition. Get in touch if they are thinking of selling.

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