What credit score do you need for a mortgage?
Quick answer: Mortgage lenders use their own scoring, so there’s no ‘magic number’ you need to hit. But if you have a good credit score, it’s likely you’ll have a good score with your mortgage lender too. The higher your credit score, the better your chances of being accepted for a mortgage.
There isn’t a specific credit score you need for a mortgage, and that’s because there isn’t just one credit score.
When you make an application for a mortgage or other type of credit, lenders work out a credit score for you. This is to help them decide if they think you’ll be a risk worth taking, if you’ll be a responsible, reliable borrower and likely to repay the debt. Usually, a higher score means you’re seen as lower risk. The more points you score, the more chance you have of being accepted for a mortgage, and at better rates.
How do lenders make their decisions?
Not all lenders think the same way, and they may have different ways of making their decisions. But all of them will look at some key factors to help them decide. These include:
- Information on your credit report, including your credit history and public record data, such as CCJs and IVAs
- Information you’ve given them on your application form
- Information they may already hold on you, for example if you have a bank account with them
- Their own lending policy, which may be different from those of other lenders
Looking at your credit report will give them a detailed insight into your credit history, and will show things like how much you owe on credit cards, if you’re registered to vote and if you’ve missed payments in the past. They’ll put that all together and give you a credit score of their own.
How much does your credit score affect your mortgage?
It can affect your mortgage a lot. A low score can make it a struggle to get approved, or you may have to pay pricier rates. A stronger score can improve your chances and unlock more options.
But your score isn’t the whole story when it comes to getting a mortgage. Lenders also run affordability checks, looking at your income, spending, debts, deposit and credit report.
Mortgage affordability
Mortgage lenders will want to see if you can afford your mortgage before they lend you the money, and be less of a risk to them. So, as well as looking at your credit history they will look at how much you earn, and how you spend. This includes not only credit repayments but regular, fixed costs like childcare, council tax, season tickets and other monthly outgoings.
If you can show them that you could afford your monthly mortgage payments even if your life situation changed or if interest rates and your monthly payments went up, it may help you get a mortgage even if your credit score is not the highest.
What can your Experian Credit Score tell you?
The credit score you need to get a mortgage varies, as there’s no one credit score or universal ‘magic number’. But if you have a good credit score from one of the main credit reference agencies, such as Experian, you are likely to have a good credit score with your lender.
Checking your Experian Credit Score before you apply for a mortgage can give you an idea of how lenders may see you, based on information in your Experian Credit Report. It can also help you work out if you need to improve your credit history before making your mortgage application.
What is a good credit score to get a mortgage?
The Experian Credit Score is based on the information in your Experian Credit Report. It runs from 0 to 1250 and can give you a good idea of how lenders are likely to view you. The higher your score, the better the chance you have of getting the mortgage you’re after.
This table is a general guide to how lenders may see you, based on your Experian Credit Score. Of course, there are other factors involved, such as how much deposit you have. A higher deposit brings the loan-to-value, the percentage of the overall cost that you need to borrow, down and could give you the chance of lower interest rate deals.
| Experian Credit Score band | Score range | What it can mean |
|---|---|---|
| Excellent | 1121 to 1250 | You should get the best credit cards, loans and mortgages, but there are no guarantees. |
| Very Good | 1001 to 1120 | You should get most credit cards, loans and mortgages, but you might not get the very best deals. |
| Good | 861 to 1000 | You should see a wide range of credit cards, loans and mortgages, but you might have to pay a bit more interest. |
| Fair | 641 to 860 | You might get limited credit options, higher interest rates and lower borrowing limits. But our tools can help improve your score. And as it grows, so will your choices. |
| Low | 0 to 640 | Borrowing may be difficult and interest rates could be high. But our tools can help get your score moving in the right direction. Every small increase helps, and things should improve as you get closer to a Fair score. |
Having a good credit score can improve your chances of being accepted for a mortgage, and may help you see a wider range of deals when you search.
Can you get a mortgage with bad credit?
Getting a mortgage with bad credit is possible, but it will probably be harder. You may have to pay higher interest rates, and you’ll likely need a larger deposit too, often 15% to 25% of the property’s value.
There are bad credit mortgages available, but the options you’re offered will depend on your circumstances, your credit history, your deposit and the lender’s criteria.
A bad credit history mortgage is used to describe mortgage options for people with missed payments, defaults, CCJs or other issues on their credit report. Lenders will still look at your wider circumstances, including income, affordability and deposit size.
Many people have poor credit scores simply because of their life situation, for instance, young adults with a short credit history, or people who’ve not been in the UK long.
Mortgage lenders want to know if you can reliably keep up to date with monthly repayments and not go into debt. So, showing them that you can manage simple credit cards, mobile phone contracts and even some utility services could help you boost your credit score.
Does getting a mortgage affect your credit score?
Yes, applying for and taking out a mortgage can affect your credit score in a few ways.
When you apply for a mortgage, the lender will carry out a hard search. This can have a small impact on your score. It’s temporary and isn’t anything to worry about. Just be aware that too many hard searches close together can harm your score.
Having a mortgage can really help improve your credit score over the long term, as long as you make your repayments on time.
Does a mortgage in principle affect your credit score?
A mortgage in principle, also known as an agreement in principle or decision in principle, can show how much a lender may be willing to lend you, before you make a full mortgage application.
Whether it affects your credit score depends on the type of credit check the lender uses. Some lenders use a soft search, which won’t affect your score. Others may use a hard search, which can leave a mark on your credit report.
Before applying, check whether the lender or broker will run a soft or hard search.
Improve your credit score for a mortgage application
One of the most important factors is to make credit payments on time. This ensures you don’t get any extra charges and lets you avoid having any missed or late payments on your credit report. Three more things to remember are:
- Avoid applying for credit in the six months before your mortgage application. Each time you apply for credit, a hard search is recorded on your report. Too many of these can make it look like you’re overly reliant on credit.
- Register to vote, as being on the electoral register helps companies confirm who you are and where you live.
- Stay within your credit limits. If possible, keep balances at 25% or less of your limit, as this may help your score.
And don’t forget to check your credit report for free on the Experian app, to make sure the information on it is accurate and up to date. Even a small change in the way your address is noted can affect your credit score.
If you find anything on your credit report that needs correcting, such as an address or a payment, get in touch with the lender in question and ask for them to amend it. Alternatively, we can contact the lender on your behalf.
Credit Expert
What our expert says
Your credit score is only one part of the picture when applying for a mortgage. Lenders may also consider: your income, your regular outgoings and financial commitments, the size of your deposit, your overall affordability, and whether you could continue making repayments if your circumstances changed. Reviewing your Experian Credit Report before applying can help you feel more prepared, understand what information lenders may use, and address any errors before they become an issue.Jacqui Hamilton, Experian UK
FAQs
Can you get a mortgage with no credit history?
Yes, it may be possible to get a mortgage with no credit history, but it can be harder. Lenders use your credit history to understand how you’ve managed borrowing in the past, so having little or no history can make it harder for them to assess you. Your income, deposit, affordability and wider circumstances matter too.
Do you need perfect credit to buy a house?
No, you don’t need perfect credit to buy a house. A higher credit score can improve your chances of being accepted and may help you access better mortgage deals, but lenders also look at things like your income, spending, debts, deposit and whether the mortgage looks affordable.
Which credit score do home lenders use?
Mortgage lenders don’t usually use the credit score you see from a credit reference agency on its own. They’ll normally use their own scoring system, based on information from your credit report, your application, anything they already know about you and their own lending criteria.
What’s the minimum credit score you need for a mortgage in the UK?
There’s no universal minimum credit score you need for a mortgage in the UK. Different lenders use different criteria, so there isn’t a single ‘magic number’. Generally, the higher your credit score, the better your chances of being accepted and getting a wider choice of mortgage deals.