Many people believe their credit score is the deciding factor when applying for a mortgage. They check an app, see a low number, and instantly think they have no chance of being approved. The truth is, if you have bad credit, your credit score doesn’t matter as much as you think. What really matters is the content of your credit report.
Your credit report tells lenders what happened. It shows if you’ve had defaults, late payments, or County Court Judgments (CCJ), but it also shows when they happened and whether things have now improved. Lenders in the UK don’t all look at your situation in the same way, and many people with low scores can still get a mortgage through the right type of lender.
There are two main types of mortgage lenders in the UK.
The first are credit scoring lenders, which are the high street banks most people are familiar with. These lenders rely heavily on automated systems that make quick decisions. When you apply, your credit file is run through a computer that gives you a pass or fail result. If your score is too low, your application is declined automatically, often without anyone reviewing the details of your situation.
High street banks usually want a near-perfect track record, so even a few missed payments or a small default can lead to a decline.
The second type are credit check lenders, also known as specialist or bad credit mortgage lenders. These lenders do not use a credit score to make decisions. Instead, they look at the details of your credit report to decide if you fit within their policy.
For example, one lender might accept up to three defaults if they are more than two years old, while another might accept missed payments on credit cards but not on mortgages. They focus on the facts, not the number. This means that even with a poor credit score, you could still be approved if your credit history fits their rules.
Your credit score is simply a number created by a credit agency such as Experian, Equifax, or TransUnion. Each agency calculates scores differently, and lenders do not use these numbers to make final decisions. A low score might reflect old issues that are no longer important to a lender’s criteria.
The score doesn’t tell your full story, but your credit report does.
If you have a low credit score but want a mortgage, it’s important to understand your credit report rather than worrying about the number. Start by downloading your full report from a site like Checkmyfile or Experian and make sure everything is correct and up to date. Check how many defaults, CCJs, or missed payments you have and when they were recorded. Then work with a mortgage broker who understands bad credit lenders and can match you to the right one.
Many people are surprised to learn they can still get a mortgage even with a low credit score. The key is finding a lender that focuses on what’s inside your credit file rather than relying on a number that doesn’t tell the full story.
If you’re worried that your low credit score means you can’t get a mortgage, speak to an adviser who specialises in bad credit mortgages. They can review your credit report in detail, explain what lenders will focus on, and show you your real options.
Your credit score isn’t the end of the story. With the right advice, you could still turn your mortgage plans into reality.
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.
