Your Credit Score and Your Mortgage

When you apply for a mortgage, the lender checks your credit file with one or more of the three main credit reference agencies: Experian, Equifax, and TransUnion. They look at your history of managing credit, including whether you have made payments on time, how much debt you have, and whether you have any adverse marks.

Each lender has its own scoring model, so a score that one lender considers acceptable might not work for another. This is why using a broker is so valuable: they know which lenders are more flexible with particular credit profiles.

• Register on the electoral roll at your current address. One of the easiest and most effective steps.
• Pay all bills on time. Even a single missed payment stays on your file for six years.
• Reduce credit card balances. Aim to use less than 30% of your available credit limit.
• Close unused credit accounts, but keep your oldest one open for credit history length.
• Avoid multiple credit applications in a short period.
• Check your report for errors. Incorrect addresses or accounts can be disputed.
• Remove old financial links to ex-partners with poor credit.

Yes, but your options will be more limited and the rates will be higher. Specialist lenders consider applicants with missed payments, defaults, CCJs, debt management plans, and even discharged bankruptcies. The key factors are how recent the event is and how much deposit you have.