Get A Mortgage With No Previous Credit history
Find out if you qualify in less than a minute. It won’t affect your credit score!
Get started

When applying for a mortgage, lenders will run credit searches on you. They will check your credit file to assess your history of managing your credit commitments.

There are two types of checks, a soft credit search is performed to see how successful your application could be without a full look into your history. This will have no impact on your credit score.

Whereas a hard search is a complete search into your credit report and other companies will be able to see that you have applied for credit. If you have too many hard credit checks, this can impact your credit score.
This helps determine your reliability for making monthly mortgage payments, which helps lenders assess the risk of your application.

For one of many reasons, you may have a thin credit file. This is when there isn’t enough information about your financial record which can be due to having a lack of credit accounts. And if you’re looking at getting a mortgage with no credit history, you’ll find it a little harder to get accepted as you do not have the data which demonstrates your ability to manage debt.

It isn’t impossible, but a thin credit history means lenders have nothing or little history to judge your ability to make regular payments.

Adverse Mortgage Advisors specialise in these types of mortgage application. Picking the right lender is key and we know which lenders are willing to offer mortgages to people with a limited or no financial history and the criteria they require for a successful application.

Read on to find out how having no credit history impacts the mortgage process and what we can do to help.

Mortgages with No Credit History

With a limited credit profile, it can be hard for lenders to work out how reliable you are with money and might see you as a high-risk applicant.

Credit history comes from credit agreements and making regular payments like direct debit payments, phone contracts, credit card and utility bills. There can be many reasons why you might not have strong credit history, some of which are easy to solve. For example:

  • No employment history
  • You don’t have a UK bank account
  • Having recently moved to the UK and not being registered at a permanent UK address
  • You’re not on the electoral roll
  • Living with parents can result in having no bills on record with your name on
  • If you’re recently divorced and previously your name wasn’t on any credit agreements

Getting a Mortgage with No Credit History

The first step in getting a no credit history mortgage is speaking with a specialist mortgage broker. Our experience and knowledge mean we can match you with the right lender in the first place We understand their criteria too, all of which is key.

How Can I Build a Good Credit Rating?

Getting a mortgage with no credit history is within reach, as long as your finances fit the lenders’ criteria. This could include having a good salary and large deposit.

However, if you would rather build your credit profile before applying, it can take as little as three months to see improvements. You can try the following:

  • Make sure you’re registered on the electoral roll
  • Get a mobile phone contract in your name and pay each month on time
  • Take out a low value credit card, don’t go over your limit and ensure that a direct debit is set up to collect the minimum payment as this will ensure all payments on time
  • Put your name on any utility bills you pay

Is a Larger Deposit Needed if I Have No Credit History?

Having a larger deposit is always beneficial, particularly when it comes to poor credit mortgages. In the circumstances of a no credit history mortgage, a lender would usually require a minimum deposit of 10%, so it’s important to save as much as possible to give yourself the best possible chance.

No Credit History? No Problem

Even with a lack of credit history a mortgage is still attainable. And as bad credit mortgage advisors, our specialists understand which lenders are most likely to accept an application and what they look for under these circumstances.

We’ll help your chances of getting a mortgage and you’ll learn how to improve your credit score and how to get the most out of your financial circumstances.

Get in touch with Adverse Mortgage Advisors and let us help find your mortgage today.

Get A Mortgage With No Previous Credit history
Find out if you qualify in less than a minute. It won’t affect your credit score!
Get started

Getting you the right mortgage
We are confident that we can find you a lender, but you may not feel it’s the right mortgage for you. Whether the repayments are too high, or the deposit requirement is too much, we will help you to understand what you need to do, to get the right deal.

No broker fee mortgage
We appreciate the financial benefits of a mortgage from a high street lender, so will help our clients understand what it takes to get one.  Once their credit file is repaired and the mortgage we previously arranged for them is up for renewal, we will help them celebrate their successful application with a high street lender, by waiving our broker fee.

Get A Mortgage With No Previous Credit history
Find out if you qualify in less than a minute. It won’t affect your credit score!
Get started

Getting you the right mortgage
We are confident that we can find you a lender, but you may not feel it’s the right mortgage for you. Whether the repayments are too high, or the deposit requirement is too much, we will help you to understand what you need to do, to get the right deal.

No broker fee mortgage
We appreciate the financial benefits of a mortgage from a high street lender, so will help our clients understand what it takes to get one.  Once their credit file is repaired and the mortgage we previously arranged for them is up for renewal, we will help them celebrate their successful application with a high street lender, by waiving our broker fee.


Can’t find what you are looking for?
Call us or complete the form on our contact page with any questions
01268 294777 Get in touch
FAQs

If you have questions about getting a mortgage with an adverse credit score, read our FAQs. Our wealth of knowledge within this market means that we’re confident in our ability to offer specialist mortgage advice and secure the mortgage you want regardless of your credit history.

Read more FAQs
Can you get a mortgage with no credit history?

It can be more challenging to apply for a mortgage with no credit history, but it is still possible. In the UK there are two types of lenders: 

Credit Scoring: The bigger lenders in the UK are all heavily reliant on the credit scoring system due to the level of applications they assess daily.  Credit scoring speeds up the mortgage application process, as a lot of the tasks can be automated with very little human interaction. Lenders can adjust their internal credit score pass requirements according to their risk appetite at any given time.

Credit Checking: So, they can understand how you manage your finances and what you spend your money on, these lenders will rely on manual underwriting and will personally assess your credit files, your income, and employment history, as well reviewing your bank statements in greater detail.   This is important as you have no proven track record on your ability to manage debt or your finances. 

Is there anything I can do to help with my mortgage application without any credit history?

Your bank statements are likely to be the most important supporting document for your mortgage application, so it is very important that you are able to present them in the best possible way such as not having any returned direct debits or going into an unauthorised overdraft. You will be required to provide the most recent 3 months.

Why is it difficult getting a mortgage without a credit history?

Getting a mortgage without a credit history can be more difficult because lenders typically rely on credit scores and credit history when assessing your mortgage application.

Your credit history provides a record of your current and previous borrowing and how these accounts are or have been managed. Having a good credit history where payments are or have been made on time, will give the lender more confidence when assessing your mortgage application which in turn will lead to the likelihood of your mortgage application being approved.

A lack of credit history often means you are likely to have a low credit score. Your credit score is generally driven by the types of credit commitments and payment history recorded on your credit file. Without a good credit score, you could be considered as a higher risk; this could lead to less favourable interest rates being available to you or even your mortgage application being denied if the wrong lender is sent your application.

Why is my credit score low if I don’t have any active debts?

There are a few reasons why your credit score may be lower than expected without any active credit commitments.

  • Previous credit accounts could have been poorly maintained which includes missed payments or even defaulted accounts.
  • Potentially a CCJ has been recorded against you for non-credit related circumstances such as parking fines or civil disputes.
  • Limited credit history: Your credit score is based on your credit history, which includes how your credit accounts have been managed, types of credit used, and credit utilisation (percentage of your available credit that you are using). if you have credit cards it is good practice for the running balance to be kept at less than 30% of the credit limit and to ensure more than the minimum payment is made on the account each month
  • Errors on your credit report: It is possible that creditors are recording things incorrectly against you. Common mistakes in reporting are accounts that do not belong to you or incorrect payment information.
How can I increase my credit score?

Building your credit score is important so that you can apply for credit on the cheapest terms. Whether that credit is a credit card, personal loan, or a mortgage.

Being able to qualify for credit with the lowest interest rate will save you a lot of money.  

Be sure to read our top 10 tips on how to improve your credit score in the previous question by clicking on a link to our useful guide

Low credit score but no missed payments?

If you have a low credit score but no missed payments recorded against you, there could be a few reasons why, for example, Limited credit history, high credit utilisation, errors on your credit report, right through to recent negative information such as failed credit applications or multiple searches run against you over a very short period.

It’s very important to review your credit file regularly so that you can understand your starting position and where you sit on the credit score scale.

Once you understand the cause of your low score, a plan of action can be made to improve it. Be sure to read our top 10 tips on how to improve your credit score in the previous question.