The path to buying a home can be full of twists and turns, with numerous hidden battles a first time buyer might face. Here at Key Mortgage Advice we aim to make this process as smooth and stress free as possible. One hurdle that a potential buyer may come across is the credit score expectation across the UK. One of the most important factors a lender may consider when weighing up your mortgage application is your credit score.
The common conception across the United Kingdom is that a higher credit score results in better mortgage deals and lower interest rates. With over 20 years of experience, we offer tailored guidance to help you understand the ins and outs of how your credit score really affects your ability to buy a house.
What Is A Credit Score?
To understand what credit score is needed to buy a house, a buyer must first get a clear picture of what a credit score actually is.
In basic terms, a credit score is a number that indicates how good you are at borrowing money, and paying it back on time. This number is utilised by different industries and fields across the United Kingdom. These include:
- Lenders
- Landlords
- Employers
The high majority of industries that utilise this check do so to assess risks and make informed decisions. In terms of mortgages, a credit score is viewed as a financial ‘trust rating’ that lenders use when deciding whether to give you a mortgage. In a nutshell, the higher your credit score, the greater your chances are at getting a better mortgage deal.
The great thing about credit scores is that they can always be improved! At Key Mortgage Advice, we aim to help you make informed decisions towards your future. We can advise on specific ways you can boost your credit score, so feel free to Book a free consultation with us to find out more.
What Is A Good Credit Score?
In terms of numbers, any score above 700 is viewed as a good credit score. The higher the credit score, the more likely lenders will see you as a low risk buyer. If your score isn’t perfect just yet, our advisors can offer you tailored advice on how to boost your credit score and work towards your ideal home.
What Is A Bad Credit Score?
In the United Kingdom, a bad credit score would be 500-550. This type of score can lead lenders to think that you are a high risk buyer. However, this isn’t the end of the road for many potential buyers. Our mortgage calculator can help with a quick and easy estimate of what your monthly mortgage repayments may look like.
What Credit Score Is Needed To Buy A House?
The truth is, there is no magic number that opens the doors to a better mortgage. Most lenders like to see a score in the ‘good’ range. These scores are usually around 650 and above. The general understanding is that the higher your credit score is, the better your chances are at getting a mortgage approved.
However, there is still some good news for some buyers who may have had credit issues in the past – you can still get a mortgage with a lower credit score. There may just be fewer choices and some slightly higher rates.
This is where we come in; we acknowledge that everyone’s journey can be different. We aim to help you secure the best mortgage with confidence. We offer buy to let mortgages, lifetime mortgages, commercial mortgages and remortgages. No matter where your credit stands, our experienced advisors can point you in the right direction with a range of mortgage choices.
What Can We Do To Help?
- Credit check guidance: We can help you understand your credit and how lenders might view your score.
- Credit score improvement tips: We can help with improvements. We offer support and realistic guidance when boosting your credit score.
- Tailored mortgage matches: We have access to lenders who specialise in helping buyers with lower credit scores.
We are with you every step of the way. From your very first enquiry, let us handle the paperwork while you focus on what matters.
We offer a free mortgage consultation to discuss your mortgage needs and options, perfect for those wanting to make a start on their path to home ownership.
Ready to find out what’s possible for you? Contact us on:
Email: enquiries@keymortgageadvice.co.uk
Or call the office:
Mortgage Broker Preston: 01772 620000
