28th March 2025

What Credit Score is Needed to Buy a House in the UK?

If you're planning to buy a house, one of the most important factors to consider is your credit score. Lenders use your credit score to assess your financial reliability and determine whether to approve your mortgage application. However, mortgage approval is based on multiple factors, not just your credit score. In this article, we'll explore how credit scores impact mortgage applications, discuss other key considerations, and answer common questions such as: Does credit score affect mortgage approvals?

Understanding Credit Scores

Before diving into mortgage specifics, let's start with the basics. A credit score is a numerical representation of your creditworthiness, based on your financial history. In the UK, credit scores are calculated by credit reference agencies like Experian, Equifax, and TransUnion. Scores typically range from 0 to 999, depending on the agency.

However, lenders do not base their decisions solely on these scores. They conduct affordability assessments, review income stability, and evaluate overall financial health.

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What Credit Score Do You Need for a Mortgage?

Minimum Credit Score for Mortgage UK

There is no universal minimum credit score for securing a mortgage in the UK. While some lenders prefer borrowers with a score of 620 or higher, others may accept lower scores, particularly if the applicant has a strong profile in other areas (e.g., stable income, low debt-to-income ratio, or a large deposit). Each lender applies its own criteria, so it's important to shop around.

What is Considered a Good Credit Score?

Credit reference agencies use different scoring bands, but generally:

• Excellent: 961 - 999 (Experian), 811 - 1,000 (Equifax)
• Good: 881 - 960 (Experian), 671 - 810 (Equifax)
• Fair: 721 - 880 (Experian), 531 - 670 (Equifax)
• Poor: 561 - 720 (Experian), 439 - 530 (Equifax)
• Very Poor: 0 - 560 (Experian), 0 - 438 (Equifax)

Important:A high credit score does not guarantee mortgage approval. Lenders also assess affordability, employment status, and financial commitments.

Does Credit Score Affect Mortgage Applications?

Yes, your credit score affects mortgage applications in several ways:

1. Approval Chances: Lenders use your credit score as part of their assessment process, but it is only one factor in their decision-making.
2. Interest Rates: Borrowers with higher credit scores are more likely to qualify for lower interest rates.
3. Loan Amount: A strong financial profile may allow you to borrow more, but affordability checks and stress tests also play a crucial role.

Mortgage lenders consider multiple aspects, including income stability, deposit size, and existing financial commitments.

How to Improve Your Credit Score for a Mortgage

If your credit score isn't where you'd like it to be, don't worry - there are steps you can take to improve it:

1. Check Your Credit Report: Review your report for errors or inaccuracies and dispute any mistakes with the credit reference agency.
2. Pay Bills on Time: Late payments negatively impact your score. Set up direct debits to avoid missed payments.
3. Reduce Debt: Pay down existing debts, such as credit cards or loans, to lower your credit utilisation ratio.
4. Avoid New Credit Applications:Multiple applications in a short period can lower your score.
5. Register to Vote: Being on the electoral roll can boost your credit score as it helps lenders verify your identity.

Can You Get a Mortgage with a Low Credit Score?

Yes, it is possible, but options may be more limited. Some lenders specialise in mortgages for borrowers with poor credit, but these deals often come with higher interest rates or larger deposit requirements.

If you're struggling to secure a mortgage due to your credit score, consider seeking advice from a regulated mortgage broker. A broker can help you explore lenders who may be more flexible based on your circumstances.

Conclusion

Your credit score plays a role in the mortgage application process, but it's not the only factor lenders consider. Affordability checks, income stability, and deposit size also determine eligibility. You can increase your chances of securing a suitable mortgage by improving your creditworthiness and understanding lender requirements.

At WIS Mortgages and Insurance Service, we can help you navigate the mortgage process, whether you're a first-time buyer, looking to remortgage, or have a complex credit history. Approval is subject to lender criteria, credit status, and affordability checks.

Contact us today for a fee free advice.

Important Risk Warning: As a mortgage is secured against your home, it may be repossessed if you do not keep up with mortgage repayments.

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