What Credit Score Do You Need For A Mortgage?

When applying for a mortgage, lenders/providers would typically take into consideration a number of different factors before deciding whether they’re willing to offer you a mortgage and on what terms. One of these factors is your credit score and with more people in the UK having bad credit than ever before, it is important to ensure that you’re aware of your credit score and you’re obtaining a copy of your credit report before applying for a mortgage. 

What is a credit score?

Your credit score is essentially a number that expresses how reliable you are as a borrower. All mortgage lenders use your score to predict how ‘risky’ it is to lend money to you, after all, lenders much prefer to lend money to borrowers who are going to repay it on time and in full. 

Ideally, to prevent any issues when it comes to getting a mortgage and to ensure that you get the most competitive terms, you should try to maintain a ‘good’ credit score. Thankfully, your creditworthiness is something that you could improve over time and things such as; using your credit card sensibly, setting up direct debits and paying off loans on time could make a big difference in this regard. 

You can check your own credit score with companies like Experian and Equifax too, and this gives you a better idea of just how good your current score is. To prevent any concern, it’s worth noting that checking your credit score with these companies won’t have a negative impact on your score and you can check it as many times as you like. 

What credit score do you need for a mortgage?

There isn’t a specific number that mortgage providers are looking for when it comes to your credit score and you won’t necessarily be eligible for a mortgage just because your credit score is above a certain number. Every mortgage provider has its own ‘credit scoring system’ which they use to determine how much of a risk you would be to lend money to. 

Unfortunately, mortgage lenders don’t publish their credit scoring systems and these often differ from one lender to another, so it is difficult to know exactly how you’re going to rate with each lender. However, most of the information used to calculate your credit score is provided by you on your mortgage application form and it is essential that this information is filled in correctly. In fact, lying on this form is considered to be fraud and it is taken very seriously. 

How do you get a mortgage with a low credit score?

As you may expect, if you have a low credit score, it could sometimes be harder to get a mortgage on competitive terms. Due to the fact that you’re considered ‘high risk’ to mortgage lenders, you may have to put down a larger deposit too and this makes purchasing a new property more expensive upfront. Not to mention, you may also be charged a higher interest rate to make up for the extra risk of you failing to keep up with your repayments. 

Thankfully, even if your credit score isn’t as good as you would like it to be, or most mortgage providers would like it to be, it is still possible to get a mortgage. One of the best things to do if you currently have a low credit score is turn to a mortgage adviser for some professional assistance. Specialist ‘poor credit mortgages advisors’ can make the process of getting a competitive mortgage much easier. 

Trying to find a mortgage advisor in Maidenhead?

When searching for mortgage advisors in Maidenhead, don’t hesitate to get in touch with us here at Mortgage Required. Our team of experts have lots of experience helping clients with adverse credit and they can provide you with the free mortgage advice that you’re in need of. We can help you to select the best mortgage provider and enhance the likelihood of you receiving a mortgage offer that meets your individual needs. Unlike other mortgage advisors in Maidenhead, we have access to the whole mortgage market and our specialists can prevent you from making any costly mistakes when it comes to your mortgage. 

Your home may be repossessed if you do not keep up repayments on your mortgage.

There will be no fee for Mortgage Advice. There may be a fee for arranging a mortgage. The precise amount will depend upon your circumstances, but we estimate it to be £399.

Mortgage Required Ltd, Finance House, 5 Bath Road, Maidenhead, SL6 4AQ is authorised and regulated by the Financial Conduct Authority reference 573718 at www.fca.org.uk.

The Financial Ombudsman Service is an agency for arbitrating on unresolved complaints between regulated firms and their clients. More detail can be found on their website: www.financial-ombudsman.org.uk