Head of Content
Mortgage Advisor & Director
What is a credit check?
When applying for a mortgage, lenders will want to know that you are a reliable borrower. One way that they do this is to check your credit history.
Your credit record summarises your financial reliability, containing all of your debts and showing how reliable you are at making repayments. Your credit record is accompanied by a score, which gives you a quick snapshot of how trustworthy you are as a borrower.
When do mortgage lenders check your credit record?
Initially, mortgage lenders tend to perform a soft search against your credit record.
Later in the process, they will perform a hard credit check looking into your financial history and assessing whether you meet their eligibility and affordability criteria. When applying for a mortgage, you may see that these searches negatively impact your credit score; however, this is only temporary, and in the long run, having a mortgage improves your credit score.
What credit score do you need to get a mortgage?
The simple answer is there is no ideal score that you need to get a mortgage.
Rather than the score, lenders will be concerned about the type of credit you have, the age of the credit you have, and whether you’re making repayments. These assessments will vary from lender to lender, and no one score fits all. Your credit score will also vary between credit agencies and have different meanings for each.
Should I check my credit score before applying for a mortgage?
It is always a good idea to check your credit score before making a mortgage application.
We would recommend that you check your score with the three leading credit agencies. These are Experian, Equifax and Call Credit. Checking your credit report will not negatively impact your credit score and help you get a better idea of how the lender perceives you and your risk as a borrower. We would recommend you check your credit score at least six months before applying for a mortgage to give you time to make adjustments if needed.
How can I improve my credit score?
Improving your credit score can take several months, but it could put you on the path to getting the best deal possible on your mortgage. To start:
- Check your credit history, making sure that there are no inaccuracies with the information.
- Check that you are registered on the electoral roll.
- Make repayments on time and use the credit sensibly. This will demonstrate to lenders that you are a reliable borrower and overall, lending you a mortgage would be low risk.
Can I get a mortgage with bad credit?
Yes, even if you have bad credit, there are routes to getting a mortgage. Not all bad credit is viewed equally in the eyes of the lender. They will be concerned with the age and severity of the credit issue. For example, and IVA Will have more of an impact and missed payment or two.
If you are looking to get a mortgage with a bad credit history, your best chances are to use a competent and experienced broker. This will not only improve your chances of a successful application but will also help you to get the best deal. Remember a mortgage refusal will have a negative impact on your credit rating.
At Teito, our expert advisors have helped many people like you to get the best deal possible on their mortgage. Even if you have a bad credit history, we can help. Get started today and will we promise to meet your mortgage journey as stressfree as possible.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.
