Mortgages with no credit history

Need a mortgage with no credit history? You’re in the right place. We’re specialist mortgage brokers with a proven track record of making mortgages possible for people without a credit file, like you.

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Can I get a mortgage with no credit history?

Yes, you can get a mortgage with no credit history! However, it’s unlikely you’ll be considered by any kind of automated online mortgage firm or your high street bank. They generally reject anyone who hasn’t got a credit file, as you need to prove that you’re good at paying back what you borrow. To get a mortgage when you haven’t got a credit history, you’ll need to pull together anything you can that proves your ability to pay a mortgage. It’s also a really good idea to work with a specialist broker who can help you find a lender who’s likely to accept you.

Having no credit score means you don’t have enough recent credit activity under your name to make up a credit score – something lenders want to see before considering giving you a mortgage. 

Typically, lenders want to see proof that you have a proven history of being able to make repayments on time. They do this through a credit check. It’s not really fair -  just because you’ve never taken out a loan or credit card,  doesn’t mean you’re not going to be able to keep up with your monthly mortgage repayments. Generally, it means you spend within your means and prefer not to borrow!

Sometimes, you might have a history of credit but not realise. For example, mobile phone contracts and utilities are still considered forms of borrowing and will give you a credit history. Things like this can be really helpful if you’re applying for a mortgage without a credit history, because it’s better than having absolutely nothing. 

It’s a good idea to pull together any evidence you have that can prove you’re good with money and can keep up with mortgage repayments before you apply. 

Here are a few things you can do:

  • Gather your employment records – i.e. payslips, invoices or bank records. 

  • Provide evidence of paying your rent on time.

  • Get any utility bills for the property you live in that shows the bills are paid on time. 

Anything like this will help your specialist broker to build a case for you to take to a specialist lender. Then, you’ll have the best chance of getting approved for a mortgage. Make an enquiry and one of our friendly Mortgage Experts will look at your options.

Got questions?

Why might you have no credit history?

There’s loads of reasons someone might not have a credit history, so it’s unfair to be refused a mortgage just because you don’t have one. It’s very common for some people to not have a credit history due to living with parents or family (so your name won’t be on the bills). Because of this, it’s actually very common for first-time buyers to have no credit history. 

Another reason you might not have a credit history if you’ve just recently moved to the UK, or don’t have a UK bank account yet.

Because your credit file only covers a period of six years, you could end up with no credit history if you haven’t borrowed money in the last six years (the length of time that borrowing stays visible on your credit report). So it’s possible to have no credit history if you’re retired, paid off all your debts a long time ago or just haven't used a credit card or other kind of credit for a long time. If that’s the case, you’ll definitely be able to prove you do have a credit history, it’ll just take a bit of manual organising on your part to get together some historical proof of your credit history.

Here’s a list of common reasons you might have no credit history:

  • You’re not on the UK electoral roll 

  • You don’t have a permanent address

  • You don’t have a utility bill in your name

  • You’ve just moved to the UK

  • You were living abroad but have now returned to the UK

  • You’ve been living with your parents

  • Your credit history is outdated (nothing on there for six years or more)

Why do lenders often reject applications with no credit history?

Your credit score is the evidence that a lender needs to assess the risk of lending money to you. A higher score means you’re ‘low risk’, which means you have a proven history of repaying debts on time. And a lower score suggests that you’re ‘high risk’ – having previously missed payments. 

Having no credit history means that a lender can’t assess your ability to make payments on time. Lenders want to minimise their own risk when approving a mortgage, and having no credit history doesn’t give them the certainty they want.

Most mortgage lenders will want you to have a credit score before they’ll be willing to offer you a mortgage. But there are specialist mortgage lenders who will consider you with no credit score. 

Generally, it’ll be specialist lenders who’ll be willing to consider your mortgage application if you don’t have a credit score yet. To find a specialist lender, you’ll need a specialist mortgage broker. That's where we come in! Our Mortgage Experts only do the tricky stuff. Make an enquiry and we'll find a way to help.

What happens when lenders do a credit search?

Before offering you a mortgage, lenders do a credit search to decide if they want to lend you money. They’ll do a credit check to get a clear understanding of your financial history.

Lenders will usually have a reason for doing a credit check on you. For example, you’ve applied for a mortgage with them. But you can get credit checked for other things too, like if you apply for a credit card or a store credit card.

Lenders differ in the way they conduct credit checks, but most will look for any past behaviour that could suggest you won’t pay your mortgage repayments on time. 

There’s two types of credit check. A soft check, and a hard check. 

A hard check is where a lender looks at the details of your credit history, and the check shows up on your credit file so it’s visible to anyone who checks your credit file. Too many hard checks in a short space of time can look concerning to lenders because they think you’ve got a lot of other financial commitments. 

A soft check is a lighter version of a hard check – just a brief look at your credit file. A soft check doesn’t show up on your file. When you check your own, that’s not visible to anyone else.

Should I improve my credit score before applying for a mortgage without a credit history?

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 build a score before applying. If you’re really pushed for time and need to get a mortgage soon; our Mortgage Experts can look at your options and work hard to find a solution. Get a mortgage.

What can you do to build up your credit history?

If you don’t have any credit history yet, it’s a really good idea to start building up your file. You can do that by thinking about what makes sense for you. It could be starting to pay a utility bill in your name, taking out a loan, or getting a credit card or some other kind of credit. Whatever you choose, make sure it’s realistic for you and will be manageable to repay. 

Here are some ways you can build your credit history:

  • Make sure you’re registered on the electoral roll – you won’t be able to get a mortgage without doing this!

  • Open a UK bank account –  if you’re new to the UK, or haven’t ever had a bank account in your name, it’s a great place to start as a way to build your credit history.

  • Take out a utility bill in your name – this could be a mobile phone contract, an energy bill, internet or water.

How long does it take to build up your credit history?

It’s usually quicker to build up a credit history from scratch than it is to improve a bad credit score. So you’re at a good starting point! 

Lenders just want to see a proven track record of you managing your credit sensibly and making repayments on time, and this can sometimes take years. Speak to one of our Mortgage Experts who can help you understand your options. Get a mortgage.

What’s the difference between a credit score and a credit report?

Your credit score is a number between 300-850. It’s an indication of where you are on a scale of ‘Excellent’ to ‘Poor’ when it comes to borrowing money. Your score is based on the information in your credit report. 

Your credit report is a detailed record of all the credit you’ve had in the past. This can be things like credit cards, mortgages and bills.

Your credit report contains this information:

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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Unlike others, we only work on bad credit, self-employed and complex mortgages. That’s all we do. And we’re up for a challenge.

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