What Credit Score Do You Need For a Mortgage?

There are three main credit referencing agencies in the UK - Experian, Equifax, TransUnion - and all of them work out your credit score in slightly different ways. Because of this, there isn’t one universal credit score you need to get a mortgage, but there are different categories and thresholds that could make it easier or more difficult, depending on where your credit score sits.

So, it’s important to have an understanding of where your credit score needs to fall and, if it doesn’t, how you can improve your credit score in order to give yourself a better chance of securing the mortgage you need for the house you want to buy.

What is the minimum credit score to get a mortgage?

There isn’t a minimum credit score you need to get a mortgage in the UK. It’s possible to get a mortgage whatever your credit rating, but generally the higher your score, the more likely you are to find a mortgage lender willing to loan you the money to buy a house.

Can you get a mortgage if you have bad credit?

Yes, it’s possible. But you'll have fewer options compared to someone with a good credit rating. If you're thinking about getting a mortgage with bad credit, it's best to work with a bad credit mortgage broker (like us). Specialist brokers can look at all your options, find you the right deal, and make your application look great. Mortgages with bad credit are a lot tougher to get when doing it on your own - you could even be asked to pay higher interest rates or put down a bigger deposit.

Specialist lenders offer mortgages that are specifically designed for applicants with a bad credit rating. Our Mortgage Experts have a proven track record of making poor credit mortgages possible, and have great relationships with these lenders. Make an enquiry to find out what your options could be.

What is a good credit score out of 700? 

A good credit score out of 700 depends on which credit reference agency you’re getting your credit score from. Each agency has a different scoring system. 

The table below shows how Experian, Equifax and TransUnion rank credit scores. Experian credit scores are out of 999, whereas with Equifax, it’s out of 700. So if you had an account with Equifax and your credit score was 700, that would be the maximum score you could get and marked as ‘excellent’. But if you checked your score through Experian, a credit score of 700 would be ‘poor’. A bit confusing, we know.

Checkmyfile** is a good way to find out how your credit looks across all agencies, and it's free with a 30 day trial (usually £14.99 a month, cancel any time).

If you want to spend some time rebuilding your credit score before you apply for a mortgage, check out our Guide: How to improve your credit score.

**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 trust and believe in.

What is a typical credit score for a mortgage?

In the same way there isn’t a universal credit score that will definitely secure you a mortgage, there isn’t a ‘typical’ or average credit score either. A lot of mortgage lenders like your credit score to be as high as possible because it shows them that you've been good with credit in the past.

There are specialist lenders who will consider your mortgage application even if you don’t have a typically ‘good’ credit score. Our mortgage team has a strong working relationship with the most respected bad credit mortgage lenders in the UK. They would be able to help you identify the right lender for your specific situation, saving you a lot of time and, potentially, some money too.

Can I get a mortgage with a ‘Fair’ credit score?

Yes, it’s possible to get a mortgage with a ‘Fair’ credit rating. Generally, mortgage lenders like applicants to have a high credit rating, but they all have different lending criteria. If you’re thinking of getting a mortgage and want a clear view of how mortgage lenders will see you, it could be worth signing up for a Checkmyfile credit report. 

When you apply for a mortgage, a mortgage lender will do a thorough check of your credit history over the last six years. Checkmyfile lets you see what they will see, so you’ll know exactly how your credit rating appears and what kind of score you have. Once you have a clear view of your credit history and how each of the major credit reference agencies have rated you, you’ll know how likely it will be for lenders to offer you a mortgage. 

Do I need a credit score to get a mortgage?

Most mortgage lenders will want you to have at least some credit history before they’ll be willing to offer you a mortgage. But there are specialist mortgage lenders who will consider you with a very low or even no credit score.

It's not uncommon for someone to have no credit history at all, for example you might have never taken out any kind of credit (like a utility bill in your name), or maybe you’re still living at home with parents so haven’t yet had a chance to build a credit profile. 

Generally, it’ll be specialist lenders who’ll be willing to consider a mortgage application in these circumstances. They’ll look beyond computer-based checklists and assess an applicant on a case-by-case basis.

What credit score do you need as a first time home buyer?

The credit score you’ll need as a first time buyer will depend on which mortgage lender you apply to. Every mortgage lender has different terms and conditions to help them decide whether or not to lend to you. Some mortgage lenders won’t give someone a mortgage if they have a credit score under a certain threshold. But not all lenders have such rigid rules.

As a first time buyer, it’s good to have a decent credit score because then you’ll have as many options open to you from as many lenders as possible. A high credit score indicates you’ve got a history of paying back your credit on time, for example, you pay your energy and gas bills on time, or your mobile phone bill etc. All these things add up to give you a good credit score. But it's not game over if you need a mortgage with a poor credit rating.

If you’re worried you don’t have a high enough credit score, or have struggled paying back bills in the past, you can still get a mortgage. You’ll probably just need the help of a specialist mortgage broker, like us! Get in touch to find out your options.

What credit report do mortgage lenders use?

Mortgage lenders don’t use just one credit report or credit agency. When you apply for a mortgage, lenders will look for as much information as they can see about you before they offer you a mortgage. When they do this it’s called a ‘hard check’. A hard credit check will only ever happen if you’re making a new application, and the creditor will always have to ask your permission first before they do it. 

The credit checking agencies also decide what category you fall into depending on what your score is, for example, excellent, good, fair or poor. Lenders don’t take these categories into consideration when making a lending decision. Instead, they look at the detail of your credit history including:

• What credit issues you may have had in the past – for example, any history of bankruptcy, defaults or County Court Judgments (CCJs)?

• What is the total amount of debt outstanding across all your accounts?

• How have you managed your credit accounts in the past, did you pay on time and in full?

• Do you make the minimum monthly payment on your credit card or do you overpay?

• Do you use your overdraft, and if so, how often and what’s the limit on it?