What credit score is needed for a mortgage?

Buying a house or any other property requires financial preparation. It’s not just about how much you can afford or what type of mortgage you’ll need – getting ready goes back further than that. If you’re applying for a mortgage, you’ll need to make sure that you’re creditworthy in a lender’s eyes. This means that they’ll think it’s likely that you’ll meet the payments on your mortgage instalments.

What is a credit score?

Your credit score takes into account various factors to calculate how creditworthy you are.

What credit score is needed for a mortgage?

There is no universal credit score, as these can vary among lenders and credit reference agencies. As credit scores vary depending on who’s calculating them, the minimum score you’ll need depends on each individual lender’s own criteria. Finding out your score from one or more credit reference agencies may give you a general idea of where you stand.

If your score is low, you’ll have the opportunity to try to improve your credit score before making a mortgage application. There are typically many factors that can affect your credit score, and your credit report can help you to understand (to an extent) what needs to be improved. For instance, your report may show that you’ve missed payments, or aren’t on the electoral roll. These are two examples of things that could have an impact on your score.

If you’re thinking of buying a house, it’s worth making sure early on in the process that your credit history is in order. Your Equifax Credit Report & Score, which is free for the first 30 days then £14.95 monthly, gives you access to your credit history as well as an indication of how creditworthy a lender may find you. It also provides you with regular alerts in case there are any changes to your Equifax Credit Report.