A ‘dream come true’ feeling is always intense when you finally decide to implement your long awaiting plans of a home. The money you saved for deposit is now ready to act as the backbone. Rest of the financial gap is necessary to fill with a mortgage. Here comes the role of your credit rating and this raises a question on the ideal credit rating to qualify for a mortgage. This actually varies from lender to lender, as there are different credit reference agencies. You do not know which agency your lender considers.

It is perhaps better to keep an eye on all three agencies Experian, Equifax and Callcredit. Do you know these agencies have different criteria to assign credit rating? This difference may show on your financial records taken from all three agencies. Also, it is important to check your credit file and make sure that there is no wrong information as it can hugely affect your credit score performance.

Here at Shine Mortgages, we assemble the best possible deals on mortgage to bring you the funds for your home. Advanced loan calculators help to get a close estimation of rate quote to repayments.

This chart is perhaps a good answer if you ever ask What Credit Score Do I Need for a Mortgage in the UK. It is not an exaggeration to consider the credit score status as the starting point of the journey of mortgage. A good start always helps in avoiding bumpy roads. In case of any slightest issue in credit score status, give the best on the deposit side. More money in advance paves way for smoother approval decisions as the lender has less risk to take. Life is all about balance, a scarcity on one side can be compensated with additional efforts on the other side. Mortgage is also like that, in totality, you just need to prove your affordability and that is all. Do it well and do it genuinely, then only better results are there to expect.

EXPERIAN CREDIT SCORE CHART
Credit Score Performance
961-999 Excellent - Bright chances to get mortgage deals with lowest interest rate.
881 - 960 Good - Get most but not all best deals.
721 - 880 Fair - Avail good mortgage offers on reasonable interest rates.
561-720 Poor - Mortgage deals are there but with less relaxation on rates.
0-560 Very Poor - May get denial or can get deals but on very high interest rates.

Defining a Credit Score

Borrowing funds through mortgage is a long game. It is necessary to know the varied and important aspects that play a decisive role. First question is usually - ‘What is Your Credit Score?’ To answer this question, it is necessary to know What a Credit Score Is.

Credit score is a record of financial activities and repayment history gathered by credit reference agencies from varied sources.

The Information is Gathered Mainly from 4 Sources:
  • Electoral roll information - This contains the address information and ‘who lives with whom’ details.
  • Court records - This shows if there is any County Court Judgement (CCJ) or Bankruptcy on your name.
  • Fraud data - It tells if you have committed any fraud or may be someone else has committed any fraud by stealing your identity.
  • Search data - This gives details about the lenders that have searched your credit file when (if) you applied for a loan. It also has addresses and that you are linked too and also about the people, you have any financial association with.
Defining a Credit Score

Once we approve your loan after all the formalities, you need to follow some steps to reach the destination of disbursal.


Did you know?

Even a wrong address in your records can affect your credit rating.


Mortgage With Good Credit And Bad Credit - What Is The Difference?

Availing mortgage with good credit is certainly different from mortgage with bad credit. But you know what? The latter case is not hopeless at least not with Shine Mortgages. Our flexible policies facilitate funding despite bad credit. The difference is of effort you need to invest. When it is about your dream home, for sure you are ready to give your best.

See The Contrast Of Good Credit And Bad Credit Mortgage.

Mortgage with Good credit Mortgage with Bad credit
It becomes easy to qualify for loan. You need to prove your repayment capacity to compensate the absence of an agreed level of credit score status.
Loan-to-value ratio turns in your favour. Loan-to-value ratio gets affected but with us, it is not a big issue if your repayment capacity is satisfactory.
You need less deposit. It is the best to have more deposit.
You need less deposit. Good relaxation in rates after customisation. Relaxation in rates after customisation is possible if bad credit situation is inconsistent.

It is always good to have good credit score but we do not leave you hopeless even in bad credit situation. A best possible solution is always there.


How The Lenders Decide on Your Application?

For sure, there are several factors of importance when the approval decision comes on your mortgage application. For a general knowledge, you should know the decisive factors that affect the decision on the loan request.


Following factors have an effect on the decision of the lenders -

  • Information in your credit report (including credit history and the public record data like IVAs and CCJs)
  • Information that you give on the loan application form
  • The lending policy of the lenders may differ
  • Your past association with the lender

Mortgage Eligibility

How To Get Mortgage With No Credit Background?

Any issue of credit score needs compensation on other side. Having no credit history can raise a little concern, as there is nothing to judge your repayment capacity in the past. In that case, it becomes natural to take you a risky bet to lend. But as we said, we do not leave you hopeless, in this case too, it is not impossible.

Focus on the points below to get approval on mortgage despite no credit history:


  • A big deposit amount for down payment is the first step on the mortgage stair.
  • Of course, a very good creditworthiness in the form of a good income status.
  • Job stability.
  • The duration from which you are living at the current address.

It is good to stay for long in a job and on the same residential address for a first time mortgage borrower.


How To Boost The Credit Score For Mortgage Affordability?

To win the game of mortgage smoothly, it is better to get rid of your credit score issues. Below are some tips to improve the credit rating and to achieve easy approval for mortgage.

  • Try not to apply for any credit during the 6 months before the mortgage application. Every loan application leaves a search footprint on your credit record, which may create problems later. In case of any rejection on any of the credit application, may make you prone to denial on mortgage.
  • Get registered on the electoral roll. It confirms about your address and who you are.
  • Do not cross your credit limits - Keep your balances on at least 25% or if possible, less than this. It helps you score.

Not everything is made in heaven. Few things are created by humans and we commit to create the second-to-none mortgage deals. That is a commitment.