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Mortgage Basics

Advice and answers from our advisers

What credit score do I need for a mortgage?

There is no fixed credit score requirement but the higher the score the better your options.

 

We work with a varied panel of lenders, some do not consider your credit score and choose to base their lending decision on affordability vs lenders who base their decision solely on a credit score.

 

 

Why do some lenders not use a credit score?

In the UK Experian, Equifax and TransUnion are responsible for determining what your credit score is.  There is no direct relationship between the three credit score providers and different agencies can give a different score.

 

Lenders who do use a credit score tend to state which providers score they will use but there isn’t always consistency between them.

 

We recommend that all our clients sign up for “Checkmyfile” as this report shows all three providers data on one report.

 

Many lenders find it easier to ignore the credit score and base their lending policy on a full assessment.  They will still use your credit report, but not the score.

 

So in theory, it doesn’t matter what your credit score is when applying for a mortgage.  What is key is making sure your credit report is clear of missed payments, CCJ’s, defaults etc.

 

What do lenders class as a good credit score?

Each lender will decide what they class as a good credit score, but the general rule for a “good” credit score is:

 

  •  Experian - 881 or above
  •  Equifax  - 670 or above
  •  TransUnion - 661 or above

 

Do you need my credit report?

We will always ask you to provide us with the most recent copy of your credit report.  We will use your credit report to assess your debt to income ratio, your likely hood of being accepted and to see what adverse credit you have.  We are not that interested in your credit score.

 

As we’ve explained above, different providers show different information.

 

We would always recommend you sign up to checkmyfile. If you'd like to sign up, please click the click below.

Try it FREE for 30 days, then £14.99 a month - cancel online anytime

 

Hello Mortgage Limited is registered in England and Wales. Registered Office: Suite 20, Cookson House, River Drive, South Shields, Tyne & Wear, NE33 1TL. Company Number: 10414170. DPA number ZA332902

 

Hello Mortgage Limited is an Appointed Representative of MyInfinity Finance  Limited which is authorised and regulated by the Financial Conduct Authority 672182.

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