Mortgages with a low credit score

Need a mortgage with a low credit score? You’re in the right place. We’re specialist mortgage brokers with a proven track record of making mortgages possible for people with a low credit score, like you.

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Can I get a mortgage with a low credit score?

Yes, you can get a mortgage with a low credit score! There are lenders who specialise in giving mortgages to people with poor credit histories, or a low credit score. These specialist lenders are usually only accessible by using a mortgage broker - they won’t show up in your online searches. 

In some cases, having a low credit score can mean you’ll be asked to pay a higher interest rate, or you might not be able to borrow as much. That means you might have to put down a larger deposit, something like 20-25% of the value of the house rather than the more typical 10%.

To get a mortgage with a poor credit score, it’s always helpful if you can show a lender you’re trustworthy by keeping on top of your regular payments and budgeting well. For example, making sure you have money left over at the end of the month.

Read more in our Guide: What Credit Score Do I Need to Get a Mortgage?

Got questions?

What is a low credit score?

Your credit score is a three-digit number based on all the stuff that goes into your credit report. Any time you’ve borrowed money - such as a credit card, loan or mobile phone contract - it all goes into your credit report. Your score gives lenders a look at what you’ve been like when it comes to repaying what you’ve borrowed. Things that affect your score are things like whether or not you pay your bills on time. 

Your score is between 0-999. The score you have depends on which credit referencing agency you are checking your score with. For example: 

Experian gives a credit score out of 999. They class a 'good' credit score to be anywhere between 881 and 960. And a  'fair' or ‘average’ score is between 721 and 880.

Equifax gives a credit score out of 700. They class a ‘good’ credit score as anything that's 420 or above.

TransUnion gives a credit score out of 710. Scores between 604-627 are considered ‘good’ and scores of 628 and above are considered ‘excellent’.

Generally, a score of 700 or higher is considered to be good, but below 670 is considered fair, while below 580 would be considered poor. The lower your credit score, the less likely you are to be accepted by mainstream lenders for credit – like a mortgage.

For a detailed and thorough overview of everything in your credit record, go to checkmyfile*. They show you the information from all three credit checkers and you can download your report for free with a 30 day free trial (usually £14.99 a month), after which a subscription fee applies, which can be cancelled any time.

*Heads up, when you click through to our affiliate links, we may earn a small commission at no extra cost to you. We only recommend sites we truly trust and believe in.

What causes a low credit score?

There’s lots of reasons you might have a low credit score which could leave you struggling to get a mortgage. For example, if you miss a payment or pay a bill late for your mobile phone or a house utility, it’ll be logged in your credit history.

Other more serious financial issues like filing for bankruptcy or having a county court judgement (CCJ) will also bring your score down, and can make you look more ‘risky’ to lenders.

How does a low credit score affect my mortgage application?

Lenders will use your credit history to decide how reliable you are when it comes to repaying debts in the past. Your credit history gives the lender a picture of your current financial situation, and they’ll use it to predict how your finances might change going forward once you have a mortgage.

Your credit history can also have an impact on the kind of interest rates that you’ll be offered.  For example, you might not be eligible for some of the introductory rates.

Read more in our Guide: Mortgage Types and Rates for Bad Credit

Where can I get a copy of my credit file?

You can get individual copies of your credit report from each main credit agency such as Equifax, Experian and Trans Union. However, they all differ slightly in what they show you. So for a detailed and thorough overview of everything in your credit record, go to checkmyfile*. Checkmyfile shows you the information from all three credit checkers so you get a much better picture of how you’ll look to lenders. The best part? It’s free with a 30 day trial (usually £14.99 a month).

*Heads up, when you click through to our affiliate links, we may earn a small commission at no extra cost to you. We only recommend sites we truly trust and believe in.

Do I need a higher deposit with a low credit score?

This depends on your unique situation and what mortgages are available to you. Different lenders will have different criteria for deposit amounts when you have a low credit score. They’ll look at a few different things like the type of debts you have outstanding and how much you owe, as well the property that you’re looking to buy, and how much it’s worth.

For mortgages with a poor credit rating (as with any mortgage) the bigger a deposit you can afford to pay, the better. A bigger deposit means you’ll get better interest rates, and ultimately be able to borrow more.

Read more in our Guide: What Deposit Do I Need for a Bad Credit Mortgage?

Should I improve my credit score before applying for a mortgage?

Usually, the higher your credit score, the easier it is to get approved for a mortgage. So it’s always a good idea to do what you can to improve your score before applying. If you’re really pushed for time but need to apply for a mortgage with a poor credit score, make an enquiry and one of our friendly Mortgage Experts will look at your options.

How can I improve my credit score?

How can I improve my credit score?

Here are some top tips for improving a low credit score:

  • Pay off any outstanding debt in full (including credit cards, loans, and similar). If that’s not possible, just pay as much as you can.

  • Make sure you’re listed on the electoral roll.

  • Consider reviewing the number of credit cards and accounts you’ve got open. Even if they don’t have outstanding balances. 

  • Use your available credit in a sensible way. For example, make small purchases on your credit card and pay off the balance in full each month. That can help build your score because it shows that you’re making repayments on time.

  • Another option is to wait until bad credit issues like CCJS or IVAs are removed from your file.

Read more tips on boosting your credit rating before applying for a mortgage.

Why use Haysto?

We get how it feels when you’re refused a mortgage. We’ve been there. Haysto exists because the mortgage world is broken. If you don’t have a shiny credit rating, you’re self-employed with a complex income, or just don’t fit the mould, the odds are completely stacked against you. We just don’t think that’s fair.

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