What credit score do you need for a mortgage? 

There is no set number you need for your credit score to get a mortgage, but usually the higher your score, the better chance you have of being accepted at a competitive rate

While it would be nice to have a figure to aim for, every lender has its own rules around credit scores and they look at a range of different things to calculate the risk of approving a mortgage to someone.

Here we look at how credit scores work when it comes to mortgages, how lenders make their decisions, and what you can do to boost your chances of being approved.

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What’s the minimum credit score I need for a mortgage?

There is no minimum credit score when it comes to mortgages, or any other type of borrowing. However, lenders like borrowers with high scores because:

• Lenders see borrowers with a high credit score as a low risk of missing repayments
• If you have a low credit score, this could mean you’ve had problems managing money and debt in the past
• Borrowers with a high credit score are likely to be able to afford repaying a mortgage, even if something unexpected happens (such as they lose their job)
• If you have no credit score, because you have no credit history, lenders can’t see what kind of borrower you are

What is a good credit score? 

Each of the main credit reference agencies has its own scoring system, and its own figures for defining what an excellent, good, medium or poor credit score is. Therefore there is no single set figure that shows you have a good credit score.

However, when you check your credit score, you’ll be shown a figure, and you’ll be told what that agency thinks of the figure.

At Experian, for example, its credit scores go from 0 to 1,250 and anything over 1,001 is classed as a ‘good’ credit score, while anything over 1,121 is ‘excellent’. While at Equifax, anything over 811 is an ‘excellent’ credit score and at Transunion a good score is between 604-62.

As each of the agencies use a different system for calculating your credit score, you could have several completely different scores. We explain it fully in our ‘what is a good credit score’ guide.

But the higher your credit score, the better the chance of you being approved for the mortgage you’re applying for.

What credit reference agencies do mortgage lenders use in the UK?

The three main credit reference agencies are Experian, Equifax and Transunion and most lenders will use more than one.

When you apply for a mortgage, the lender will want to see a clear picture of how you manage your money and how you have borrowed, and paid back, money in the past.

It will usually look at a few different agencies, and maybe all three, to get a full picture of the kind of borrower you are.

Lenders also have their own systems in place to score borrowers, and to assess how risky they might be.

How can I improve my chances of securing a mortgage?

There are lots of things you can do to boost your chances of being accepted for a mortgage, and the majority of these can be done in advance. They include:

Improving your credit score

The higher your credit score, the higher your chances of being accepted for a mortgage. Although it’s far from the only thing lenders look at, it is an important element. Luckily there are lots of ways to boost your credit score, although the majority of these aren’t things that will change overnight.

Joining the electoral roll is important as lenders use it to verify your identity, and it allows you to vote. Make sure all the details on your credit score are correct, including names and addresses, and regularly check your credit file so you’re aware of what’s on there. Not spending too much of the credit available to you and always making repayments on time is key too.

Boosting your affordability and income

Keep a strict budget before you think about applying for a mortgage as a lender won’t want to see you spending more than you have, or making any big or impulse purchases. The more you can save for your deposit, the better, and it means you may be able to get a mortgage with a better interest – plus you’ll own more of the property if you can pay a bigger deposit.

Sorting your paperwork

There’s lots of admin when it comes to applying for a mortgage and making sure you have everything you need in advance can make the process quicker and more straightforward. This includes gathering all the documents you need but also things like closing old accounts you no longer use and de-linking yourself to partners you may have previously had accounts with, especially if you’re not longer in a relationship and they have a poor credit score.

Paying off debts

Before you apply for a mortgage it’s a good idea to pay down any existing debts, such as credit cards or personal loans. This will boost your debt to income ratio and could secure you a better mortgage.

What if my mortgage credit check was poor?

If a lender scores you poorly when you apply for a mortgage your application might be rejected or you could be given a mortgage with a high interest rate, or a lower value overall. 

This is why it’s crucial to check your credit score before the lender does, so you know exactly where you stand and you can put a plan in place to boost your credit score if needed. 

It’s also important to remember that every lender has its own scoring system, so sometimes there are no obvious answers if you’re rejected for a mortgage, or any type of credit. Some lenders, for example, may not give mortgages to self-employed workers, while others may require a set deposit.