What Credit Score is Needed to Buy a House in the UK?

By Kristian Derrick

Last Reviewed: 8th February 2024

If you’re in the UK, there is no minimum credit score that you need to buy a house.

There is no “holy grail” number that your score needs to reach in order to qualify for a mortgage.

This is because there is no universal credit score. In fact, your credit rating can even vary between different lenders and credit reference agencies.

In this post, we’ll explore credit scores in more detail, and explain how you can improve your score to get the mortgage you want.

How does my credit score affect my mortgage application? 

When you apply to take out a mortgage (or any other type of loan), lenders will look at your credit score.

This will help them to determine how much risk is involved when lending to you. Are you a reliable borrower, or will you struggle to repay the debt?

Normally, a high credit score means you’re a low risk borrower. In this case, you’ll often be accepted for a mortgage, sometimes even with a better interest rate than someone with a lower credit score.

 How much does my credit score matter when applying for a mortgage?

Yes, it’s important, but getting approved for a mortgage isn’t all about your credit score.

Mortgage lenders want to check that you can afford your mortgage repayments before they agree to lend you any money.

Alongside looking at your credit history, they’ll also take into account how much you earn. They’ll even assess other monthly costs such as childcare and transport, to ensure that you can afford the mortgage repayments.

It’s also worth remembering that lenders may be more willing to lend to you if you are able to put down a large deposit. If you’re only able to put down a small deposit, lenders may require a higher credit score to make up for it.

 Recommended reading: What are the different types of mortgages and what fees are involved in buying a home

Types of First Time Buyer Mortgages

For a more in-depth look into some common types of first time buyer mortgages, check out our following guides:

How can I improve my credit score?

If your credit score is low, there are plenty of things you can do to try and increase it before applying for a mortgage.

Whether it’s simply making sure that you’re registered on the electoral role, or checking for errors in your credit report, you’d be surprised how much the little things can make a big difference.

The main things to consider when looking to improving your credit score are:

  • Make sure you’re on the electoral roll.
  • Ensure all your bills are paid on time.
  • Check if there are any mistakes or incorrect financial links to other people on your credit reports.
  • Avoid several credit applications in a short space of time.
  • Try and reduce your levels of debt before applying for a mortgage.

It’s also important to prove to lenders that you’re capable of managing your finances, especially if you are a first time buyer. If you always pay your bills and pay off your credit card balance on time, your credit score will slowly begin to rise.

If you want to speak to us about applying for a mortgage, one of our friendly advisors would be happy to help. You can contact us on 01925 918960. 

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