After the 2008 mortgage bubble and crash, mortgage companies have been under a greater duty to make sure that borrowers are able to pay their monthly payments even if mortgage rates increased significantly. This means that more detailed enquiries will be made to confirm your household income, expenditure and the reliability of your cashflow.
In addition to stress testing the borrower’s finances, the lender will undertake ‘credit checks’ to establish a borrower’s credit history including any evidence of bad debts or loan defaults. Credit checks are now quite sophisticated. Your age, employment details, where you live, who you bank with and for how long, whether you borrow money elsewhere and if you pay it back as agreed; all of these things are considered in an effort to ‘profile’ your likely risk and your profitability to the lender. For example, if you are not registered to vote or you have never borrowed any money or entered any contract for a utility, this will affect your credit rating.
Knowing your budget and living within it is good practice for all of us, but if you have a phone contract, a credit card and a broadband bill and you pay them regularly, on time, this will all help to improve your credit profile. Make sure you don’t apply for credit you don’t use as every application is noted and if you don’t take up credit (or it is refused) a lender may draw conclusions that are harmful to your score. Obviously, judgements against you in court (only for credit related matters or fraud) are likely to be detrimental to your score, although criminal records cannot be searched by lenders, They can, of course, ask you and you must not lie.
Many UK lenders use one of the main credit agencies such as Experian, Equifax or Call Credit, with Experian being the most widely used for mortgage applications. These agencies collate a picture of your past credit history to better predict your future behaviour.
Related Blog articles:
For more information or to speak to a mortgage adviser contact us on 01628 507477.
Download our Free First Time Buyers Guide
Recent posts
Analysis from the Office for Budget Responsibility (OBR) shows that those looking to buy their first home could face a sharp increase if house prices follow the latest predictions, as Coventry Building Society suggests.
According to Zoopla, four in 10 homes are now cheaper to buy with a mortgage than to rent due to lower-cost mortgages - a sign that ownership is becoming more affordable.
Best UK Mortgage Rates this Week
5 days ago
Here are the lowest fixed mortgage rates of the week, available to first-time buyers, home movers, buy-to-let, and those remortgaging.
Call us for more information: 01628 507477 or email: team@mortgagerequired.com.
World Sleep Day Tips
10 days ago
There are many people who struggle with getting a good night’s sleep. Having poor sleep hygiene can be the reason for bad sleep quality in adults. Sleep hygiene refers to habits that can help you sleep better.
Here we have shared some tips to create a healthier sleep.
What you need to know about remortgaging
12 days ago
If your current fixed rate is due to come to an end within the next six months, you will want to start thinking about the options available to you.
Nationwide is the first lender to allow mortgage deeds to be signed electronically and without the need for a witness.
‘My First Mortgage’ from major high-street lender Santander is specifically for those wanting to buy their first property. It allows first-time buyers to purchase 98% of the property’s value. However, certain criteria must be met to be eligible.
Maidenhead, Berkshire – 26th January 2026 – Dedicated independent mortgage experts, Mortgage Required, are delighted to have acquired fellow experienced brokerage, Y-Not Finance.
The acquisition connects two well-respected brokerages, both with a wealth of experience and shared values, to continue providing the best advice on all aspects of the mortgage market.
More information
Trusted by
