When you want to own a home in the UK, one of the first concerns that comes up is your credit score. It’s a common belief that you need a perfect score to even be considered for a mortgage. That’s not true, but what credit score do you need to buy a house? While your credit score is undeniably an important factor for lenders, it’s not the only thing they look at and there isn’t one single ‘magic number’ that guarantees mortgage approval.

This guide aims to demystify the role of your credit score in the UK mortgage application process. We’ll explain what lenders are looking for, what general score levels might mean and what other elements contribute to their decision.

 

 

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Understanding credit scores in the UK

Before diving into specific numbers, it might be helpful to understand what a credit score actually represents and why it’s so influential when you’re asking “What credit score do you need to buy a house?”.

What is a credit score?

A credit score is a three-digit number calculated by credit reference agencies that summarises your credit history. It’s designed to give lenders an indication of how reliably you’ve managed credit and debt in the past and therefore how likely you are to repay borrowed money in the future.

In the UK there are three main credit reference agencies: Experian, Equifax and TransUnion.
It’s important to know that each CRA uses its own scoring system and scale, so your score might differ slightly between them. Lenders may check your report with one or more of these agencies.

Why does your credit score matter for a mortgage?

Lenders use your credit score and the detailed information on your credit report as a key part of their risk assessment. A higher score generally suggests you are a lower-risk borrower. Therefore your score can influence:

  • Whether your mortgage application is approved or declined
  • How much a lender is willing to lend you
  • The interest rates and specific mortgage products you’re offered (better scores often unlock more competitive deals)

A good credit history is fundamental when lenders consider “What credit score do you need to buy a house?” from their perspective.

So what credit score do you really need?

Here’s the crucial point: there is no single universal minimum credit score required by all UK lenders to get a mortgage. Each lender has its own lending criteria and risk appetite. They look at your entire financial profile, not just the score in isolation.

General credit score bands

While specific numbers vary by CRA and lender, general bands can give you an idea of how your score might be perceived:

  • Excellent/Very Good: You’re likely to be seen as a low-risk borrower and have access to the widest range of mortgages and the best interest rates.
  • Good: You should still have a good choice of lenders and competitive rates.
  • Fair/Average: You may still be able to get a mortgage but your choice of lenders might be more limited and interest rates could be slightly higher.
  • Poor/Very Poor: Getting a mortgage will be more challenging. You may need a specialist lender who deals with ‘bad credit’ mortgages often at higher interest rates and requiring larger deposits.

What lenders really look for (beyond just the score)

While your score provides a snapshot, lenders delve deeper into your credit report. They assess:

  • Payment History: Consistent, on-time payments for all credit accounts are vital. Missed or late payments can have a negative impact.
  • Level of Existing Debt: How much you owe on credit cards, loans etc. compared to your income (your debt-to-income ratio)
  • Credit Utilisation: How much of your available credit you’re using (e.g. keeping credit card balances below 25-30% of the limit is generally better)
  • Length of Credit History: A longer history of responsible credit management can be beneficial
  • Adverse Credit Markers: Serious issues like County Court Judgements (CCJs) Individual Voluntary Arrangements (IVAs) or bankruptcies will significantly affect eligibility.
  • Electoral Roll Registration: Being registered on the electoral roll at your current address helps lenders confirm your identity and stability
  • Recent Credit Applications: Making many applications for credit in a short period can temporarily lower your score and suggest to lenders you might be over-reliant on credit.

Factors that can influence your mortgage chances (alongside your credit score)

While a strong credit score is a great asset, other elements play a significant role when lenders are determining “what credit score do you need to buy a house?”. These include:

Deposit size (Loan-to-Value)

A larger deposit means you need to borrow less, reducing the lender’s risk. This can sometimes help offset a less-than-perfect credit score and often unlocks better interest rates.

Income and affordability

Lenders must be satisfied you can comfortably afford the monthly mortgage payments alongside your other outgoings. Stable verifiable income is crucial regardless of your credit score.

Lender’s own internal criteria

Each bank and building society has its own specific lending policies and risk appetite. What one lender might decline, another might accept based on their individual scoring systems and criteria.

What if your credit score isn’t perfect?

Don’t despair if your credit score isn’t in the ‘excellent’ category. Many people secure mortgages with ‘fair’ or even some ‘poor’ (though more challenging) credit profiles.

Steps to improve your credit score

If you have time before applying focus on improving your credit health:

  • Always pay all bills and credit repayments on time
  • Reduce existing debts particularly on credit cards
  • Check all your credit reports for errors and get them corrected
  • Ensure you are registered on the electoral roll
  • Avoid making multiple new credit applications in a short space of time

Consider a specialist lender or mortgage broker

Some lenders specialise in providing mortgages to individuals with less-than-ideal credit histories, often referred to as ‘bad credit mortgages’. These usually come with higher interest rates and may require larger deposits. A whole-of-market mortgage broker can be invaluable here as they will know which lenders are more likely to consider your application.

Working with a broker can be a vital step if your first thoughts on “what credit score do you need to buy a house?” leave you feeling concerned about your current standing.

How to Find Out Where You Stand

The most proactive steps you can take are:

  • Check your credit reports: Get copies of your reports from all three main UK CRAs: Experian, Equifax and TransUnion. Review them carefully.
  • Get a Mortgage in Principle (MIP): This will give you a personalised indication from a lender about how much they might be willing to lend based on your details including an initial credit assessment (usually a soft check). Getting an MIP is a practical step towards understanding your position and getting a clearer answer from a lender to the question “what credit score do you need to buy a house?”

OneDome is here to help

Choosing a mortgage is complex but OneDome is here to help. If you have any questions about the specifics of mortgages, the wider mortgage process or want tailored advice on the different types of mortgages that suit your situation you can:

Important: Your home may be repossessed if you do not keep up repayments on your mortgage.