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.
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