Having a low credit score can make applying for a mortgage feel uncertain. You may be worried that lenders will automatically say no, or that your credit history will stop you from buying a home, moving house or remortgaging.
A low credit score does not always mean you cannot get a mortgage. Lenders will look at more than just a number. They will usually consider your full credit history, income, deposit, affordability and how you manage your finances today.
At Just Mortgages, our Adverse Credit Solutions Team helps clients understand how a low credit score may affect their mortgage options and what steps they can take before applying.
Can I get a mortgage with a low credit score?
You may still be able to get a mortgage with a low credit score, depending on your circumstances.
Some lenders may be more cautious if your credit score is low, especially if there are recent missed payments, defaults, CCJs or other adverse credit markers. However, specialist lenders may be willing to consider your application if the mortgage appears affordable and your wider financial situation is strong.
Your credit score is only one part of the picture. Lenders may also look at your income, employment status, deposit, bank statements, existing debts and whether your recent credit conduct has improved.
Why might my credit score be low?
There are several reasons why your credit score may be lower than expected. These can include:
- Missed or late payments
- Defaults
- County Court Judgments, also known as CCJs
- Debt Management Plans
- Individual Voluntary Arrangements, also known as IVAs
- Bankruptcy
- Previous repossession
- High credit card balances
- Using a large amount of your available credit
- Frequent credit applications
- Limited credit history
- Not being registered on the electoral roll
- Errors on your credit file
A low credit score does not always mean you have managed credit badly. Some people have a low score because they have very little credit history, have recently moved address, or have not used credit products before.
What do mortgage lenders look at?
When assessing a mortgage application from someone with a low credit score, lenders may consider:
- The reason your credit score is low
- Whether there are any missed payments, defaults or CCJs
- How recent any credit issues are
- Whether debts have been settled
- Your current income
- Your regular outgoings
- Your deposit amount
- Your employment status
- Your bank account conduct
- Your existing credit commitments
- Whether the mortgage is affordable
Different lenders use different criteria. This means one lender may decline an application while another may be willing to consider it.
Does a low credit score affect how much I can borrow?
It can. A low credit score may limit the number of lenders available to you, which could affect how much you are able to borrow and the mortgage products you can access.
Your borrowing amount will also depend on affordability. Lenders will look at your income, household spending, credit commitments and other regular costs to decide whether the mortgage is manageable.
If you have a low credit score and high levels of existing debt, your borrowing options may be more limited. Getting advice before applying can help you understand what may be realistic.
Can first-time buyers get a mortgage with a low credit score?
First-time buyers with a low credit score may still have mortgage options, but the process can be more complex.
Some first-time buyers have a low score because they have not built up much credit history. Others may have previous missed payments or high credit card balances. Lenders will look at the reason behind the low score, as well as your deposit, income and affordability.
A specialist mortgage adviser can help you understand which lenders may be more suitable before you apply.
Can I remortgage with a low credit score?
You may be able to remortgage with a low credit score, depending on your current mortgage, property value, equity, income and credit history.
If your credit score has dropped since you took out your original mortgage, your options may be different this time. It is important to get advice before applying, especially if you are coming to the end of a fixed-rate deal or want to raise additional borrowing.
How can I improve my chances of getting a mortgage?
Before applying for a mortgage with a low credit score, it may help to:
- Check your credit file with the main credit reference agencies
- Correct any errors on your credit report
- Make all payments on time
- Reduce credit card balances where possible
- Avoid applying for new credit before your mortgage application
- Avoid using your overdraft regularly
- Register on the electoral roll if eligible
- Keep bank statements well managed
- Save as much deposit as you can
- Speak to a mortgage adviser before applying
Small improvements can sometimes make a difference, particularly if your credit issues are older or your current finances are stable.
Should I wait before applying?
In some cases, waiting may improve your mortgage options. For example, it may help if you need time to reduce debt, build your deposit, correct credit file errors or show a longer period of good payment history.
However, this depends on your circumstances. Some people may still be able to apply now, while others may benefit from taking steps to strengthen their position first.
A mortgage adviser can help you understand whether now is the right time to apply or whether waiting could improve your chances.
How Just Mortgages can help
At Just Mortgages, we understand that a low credit score can happen for many reasons. Our Adverse Credit Solutions Team will take time to understand your circumstances, explain how lenders may view your application and help you explore suitable mortgage options.
We can support clients with low credit scores as well as other credit issues, including missed payments, defaults, CCJs, IVAs, Debt Management Plans, bankruptcy, repossession and high levels of unsecured debt.
Speak to a low credit score mortgage adviser
A low credit score does not have to stop you from finding out what may be possible.
Whether you are buying your first home, moving home, remortgaging or simply trying to understand your options, Just Mortgages can help you take the next step with clear, supportive advice.
Speak to our Adverse Credit Solutions Team today.
Mortgage with a Low Credit Score FAQs
Can I get a mortgage with a low credit score?
You may be able to get a mortgage with a low credit score, depending on your income, deposit, affordability and the details of your credit history. Some specialist lenders may consider applications that high street lenders may not.
What credit score do I need to get a mortgage?
There is no single credit score that guarantees mortgage approval. Lenders use different criteria and will usually look at your full financial position, not just your credit score.
Will a low credit score stop me from getting a mortgage?
Not always. A low credit score can make getting a mortgage more difficult, but it does not automatically mean you will be declined. The reason for the low score and your current affordability will be important.
Why is my credit score low if I have no debt?
Your score may be low if you have limited credit history, are not on the electoral roll, have recently moved address, or have not used credit products before. Lenders may still want to see evidence that you can manage financial commitments.
Can I get a mortgage with a low credit score and no missed payments?
It may be possible. If your low score is due to limited credit history rather than missed payments or defaults, some lenders may still consider your application based on your income, deposit and affordability.
Does a low credit score mean I need a bigger deposit?
You may need a larger deposit, depending on the lender and your circumstances. A bigger deposit can sometimes improve the number of options available, but this is not the only factor lenders consider.
Can I remortgage if my credit score has dropped?
You may be able to remortgage if your credit score has dropped, but your options may be more limited than before. It is worth getting advice before applying, especially if you are nearing the end of your current mortgage deal.
How can I improve my credit score before applying for a mortgage?
You can help improve your credit profile by making payments on time, reducing balances, avoiding unnecessary credit applications, checking your credit file for errors and keeping your bank account well managed.
Should I apply directly to a lender with a low credit score?
It may be better to speak to a mortgage adviser first. Lender criteria vary, and applying to an unsuitable lender could lead to a declined application or unnecessary credit searches.
Can Just Mortgages help if I have a low credit score?
Yes. Just Mortgages can review your circumstances and help you understand which mortgage options may be available based on your credit history, income, deposit and affordability.