How To Get A Mortgage With No Credit History UK

By Kristian Derrick

Last Reviewed: 22nd September 2023

If you’re looking for a mortgage without a credit history in the UK, you’re not alone.

Data shows that around 5 million Brits, or 10% of the adult population in the UK, are credit invisible, meaning they don’t have a credit history.

Although not having a credit history can make things challenging, you can still qualify for a no credit mortgage and secure the financing you need to buy a home with the right help and guidance.

Here’s everything you need to know about how to get a mortgage with no credit history in the UK.

Why Is A Credit History Important?

A credit history provides a record of your past borrowing and repayment activities and is usually recorded in your credit report.

It simply shows that you’ve taken out loans, used credit cards or participated in other credit-related financial transactions reported to credit reporting agencies or bureaus.

Lenders use your credit history to determine the risk of lending to you by assessing how well you manage credit and whether you make repayments on time and use credit facilities responsibly.

Having no credit history means you don’t have enough credit activity to make up a credit score, which lenders want to see before deciding whether to offer you a mortgage.

Lenders will have no information to assess, making it difficult to determine whether you’re a reliable borrower who can manage a mortgage.

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Can You Get A Mortgage Without A Credit History?

Yes. Although your options may be limited, you can still get a mortgage without a credit history among specialised lenders with more flexible criteria for assessing your eligibility.

Such mortgages are usually called no credit score mortgages or no credit mortgages.

To get a mortgage without a credit history, you’ll need proof of your ability to repay the mortgage.

Some lenders are more inclusive and will consider other personal and financial circumstances that help determine your eligibility when assessing your application, including employment history, income, and overall wealth.

How to Get A Mortgage Without A Credit History

You can get a no credit mortgage through the following steps:

Determine Why You Don’t Have A Credit History

Identifying why you don’t have a credit history is an excellent first step in rectifying the situation and improving your chances of getting a mortgage.

Some valid reasons why you may not have a credit history include:

You’ve just turned 18 and are yet to borrow or build a credit history.
You live with your parents or family and don’t have any bills or bank accounts in your name or a record of rent payments.
You recently moved to the UK as a foreigner or have moved back after a long period abroad and can’t transfer credit histories from another country.
Your credit history has become outdated. Credit records only feature transactions from the last six years, so if you haven’t borrowed or made a mark for six years or more, you may find yourself in the shadows.
You’re not registered on the UK electoral poll.
You don’t have a fixed or permanent UK address.
You don’t have an employment history in the UK.
You don’t have a UK bank account.

Build Up Some Credit History

You can quickly build up your credit rating through some simple actions like:

Opening a bank account – An excellent first step is opening a bank account in your name, and it’s suitable if you just turned 18 or have been living abroad or with your parents. Have some money going in and out of the account regularly to show good management.
Registering as a voter – Registering as a voter and getting listed on the electoral register is quick and easy and will help prove where you live.
Taking out a utility bill in your name – Take responsibility for some utility bills like internet, energy or water by making yourself the account holder and setting up direct debits from your bank account.
Taking out a mobile phone contract – If you’ve been using someone else’s mobile plan, consider taking out a mobile phone contract on your own. It will get captured on your credit file and is suitable for showing you reliably pay your bills.
Using any regular payment as evidence – Some credit agencies feature services that allow you to capture standard payment information like subscription payments to Netflix or council tax from your bank account as proof of regular, timely payments.
Taking out a credit card – taking out a credit card is one of the simplest and most effective ways to show you can manage borrowing, and you don’t have to make unwanted expenditures. You can use the card to pay for regular items like food shopping and pay it off at the end of every month to show you can make repayments on time without fail.

How Does the Lending Criteria for No Credit Mortgages Differ?

Without a credit history, the risk is significantly higher for lenders, which can impact the lending criteria in the following ways:

Capped borrowing – You’ll only be able to borrow up to a certain amount, as most lenders will not be willing to offer higher income multiples. Instead of providing 4 to 4.5 or 5 times your salary, lenders may limit borrowing to 2 or 3 times your salary.
Higher deposit – Lenders will likely ask for a higher deposit to mitigate the risk of a no credit mortgage, so ensure you save as much as possible before applying.
Higher Interest Rates – Lenders may also charge higher interest rates because of the risk of providing a mortgage without a credit history.