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Your credit score is one of several factors mortgage lenders consider when deciding whether to lend to you, but it’s only part of the picture. Lenders also look closely at your credit history, income, affordability and overall financial circumstances before making a decision. A lower credit score doesn’t automatically mean you’ll be declined, and an excellent score doesn’t guarantee approval. In this guide, we’ll explain how your credit score and credit history affect your mortgage application, what lenders are really looking for and how you can improve your chances before applying.
Mortgage lenders assess both your credit score and your overall credit history before making a decision.
Missing payments or defaults can affect your mortgage options, but many lenders will still consider applications depending on the circumstances.
Checking your credit report before applying can help identify errors and improve your chances of approval.
Different lenders have different lending criteria, so your options can vary significantly.
A whole-of-market mortgage broker can help identify lenders suited to your credit profile.
How HTG Mortgages Can Help
At HTG Mortgages, I work with over 120 lenders across the UK, meaning we have access to a wide range of mortgage products to suit all types of borrowers. Whether you’re a first-time buyer or looking to remortgage, we can help you determine how much you can borrow and find the right mortgage for your circumstances.
We also provide ongoing support, regularly checking your options after your mortgage is secured, ensuring that you never miss out on a lower rate.
What Is a Credit Score?
A credit score is a numerical indication of your creditworthiness, calculated by credit reference agencies using information from your credit report. While it can be a useful guide, lenders don’t rely solely on this number when assessing a mortgage application.
What’s the Difference Between a Credit Score and Credit History?
Your credit score is simply a number, whereas your credit history is the detailed record behind it. Mortgage lenders are usually far more interested in your credit history, including previous borrowing, repayment behaviour, County Court Judgments (CCJs), defaults, missed payments and how you’ve managed credit over time.
Do Mortgage Lenders Check My Credit Score?
Yes, but every lender has its own approach. Some place more emphasis on your credit history than the score itself. Others use their own internal scoring systems alongside the information held by credit reference agencies.
Speak to an expert
Whether you’re buying your first home, moving house or remortgaging, HTG Mortgages is here to make the process as simple and stress-free as possible. I’ll compare mortgages from over 120 lenders, guide you every step of the way and help you find the right mortgage for your circumstances.
What Credit History Do Mortgage Lenders Look At?
Lenders may review:
- Missed or late payments
- Defaults
- CCJs
- Individual Voluntary Arrangements (IVAs)
- Bankruptcy
- Payday loans
- Existing credit commitments
- Electoral roll registration
- Length of your credit history
The importance of each factor varies between lenders.
Can I Get a Mortgage with Bad Credit?
Yes. Having bad credit doesn’t automatically prevent you from getting a mortgage. Some lenders specialise in applicants with adverse credit, while others may consider applications depending on how long ago the credit issues occurred and whether your financial situation has improved.
How Can I Improve My Credit Score Before Applying?
Improving your credit profile takes time, but simple steps can make a difference. Registering on the electoral roll, paying bills on time, reducing outstanding balances, avoiding unnecessary credit applications and checking your credit report for errors may all help strengthen your application.
Will Checking My Credit Score Affect My Mortgage?
No. Checking your own credit report through a credit reference agency is normally recorded as a soft search and doesn’t affect your ability to obtain a mortgage.
Should I Speak to a Mortgage Broker Before Applying?
Absolutely. Every lender has different criteria, particularly for applicants with less-than-perfect credit. A whole-of-market mortgage broker can identify lenders that are more likely to consider your circumstances, helping you avoid unnecessary declined applications.
Need Personal Mortgage Advice?
Every buyer’s situation is different. While this guide explains the general rules, the right mortgage for you depends on your income, deposit, credit history and future plans. If you’d like tailored advice, I’m here to help, with whole-of-market coverage.
