Your credit score is a number that summarises how well you manage your money and repay what you borrow. This is also called your “creditworthiness”. It’s an essential part of the mortgage application process.
Lenders want to know you’re a safe bet – that you’ll make your mortgage payments.
In general, the higher your score, the higher your chance of being approved, and getting the best deals. But there are other factors lenders also consider, such as the size of your deposit and what level of monthly payments you can afford.
This guide explains how your credit score is calculated, what’s a good score when applying for a mortgage, and how you can improve your score with a bit of financial housekeeping.
If you’re applying for a mortgage, one of the first things a lender will want to know is your credit score, or credit rating. This three-digit number shows how reliable you are at repaying your debts.
A strong credit score can boost your chances of getting a mortgage application approved, while a poor credit score can limit your choice of lenders and deals. And it might even mean you’re refused.
Lenders use credit reference agencies (also known as CRAs) to get a potential customer’s credit score.
There are three main CRAs in the UK and lenders can choose which one to use:
To make life more interesting, each CRA uses its own scale for what’s good and what isn’t, as we show below. Experian updated its scale in 2025.
During every mortgage application, the lender will carry out a “hard” credit check using a CRA. This is likely to result in a small, temporary dip in your score.
Having a series - more than two - of hard searches within a short time can look like you’re in financial trouble and it can damage your score. Hard credit searches can remain on your credit report for a period of time, depending on the credit reference agency.
It’s impossible to give an exact minimum credit score for a mortgage application, partly because each credit reference agency in the UK uses a different scale but also because lenders take other factors into account, such as your income and debt.
With all three CRAs, a higher score means a better rating. Lenders prefer a rating of “Good” or above. If you have an excellent credit score, you may have access to a wider range of deals, potentially including lower interest rates or smaller deposit requirements.
A good score will still get you a wide choice of deals.
If you have a fair rating, you might still be able to get a mortgage but you may have fewer options. With a fair or poor credit score, you’re probably looking at a higher interest rate and a larger deposit. Although there are mortgages for people with poor or very poor credit scores, you won’t have as many mortgage types to choose from, and there’s a higher chance of your application being rejected altogether.
If you don’t have a good or excellent score, don’t worry. Your credit score is not the only thing that lenders look at. This can be particularly true for first time buyers, who simply haven’t had as long to build up a credit history as those who’ve already climbed a few rungs up the housing ladder.
Other factors, like the type of house you want to buy, how long you’ve been in your job, and how much of your income your mortgage payments will take up how much of your income your mortgage payments will take up (often referred to as your loan-to-income ratio), and how much you’re borrowing compared to the value of the property (your loan-to-value, or LTV), also play a part.
A high credit score is beneficial, but it's not the only thing that determines whether your application will be successful.
Your creditworthiness takes into account:
Having a larger deposit can make up for a lower credit score, to a certain extent. That’s because it’s less risky for the lender. A higher deposit means a lower “loan to value” (LTV) ratio. That means that the amount you’re borrowing as a proportion of the cost of the property is lower, because more of the cost is covered by the deposit.
A 10% deposit is fairly standard; the UK average for first-time buyers is around 20% according to recent UK housing market data.
You may be able to get a mortgage with a fair or poor rating but it’s not always possible and it’s hard to go it alone. Your chances of getting a mortgage with a poor credit score could improve if you use a mortgage broker like Habito.
Whether you can get a mortgage ultimately depends on the nature of your debts and the reasons behind your poor credit history.
Missing a bill or two probably won’t have that big an impact on your credit score, and is unlikely to stop you getting a mortgage. But if you’ve been taken to court for not paying a debt and you didn’t respond and ended up with a county court judgment against you (a CCJ means the court ordered you to pay) your chances of getting a mortgage are far lower. CCJs can stay on your record for years, and they can severely limit the mortgage options you have.
If you’ve been declared bankrupt, you’ll have an even smaller choice of mortgages, and it’s unlikely that you’ll find one at all without going through a broker.
If you have a low score, your lender may ask you to pay a much larger deposit (something around 35–40%) and a higher interest rate on your mortgage. Though if you continue to improve your credit history, the situation should hopefully improve as time goes by.
Over time, your credit rating can improve if you keep making your payments on time.
Previous missed payments generally stay on your record for around six years, but as time passes and you build up evidence of responsible borrowing, these mistakes can have less impact.
Your credit score is built up over time, and improving it is also a process. But if your score is poor or you need to be accepted for a mortgage as soon as possible, there are some steps you can take immediately:
Everyone makes mistakes, and there may be errors in your credit report that you can fix. If your report says that you missed a bill that you know you paid on time, contact the supplier, and they should be able to have their records changed so your credit score can be updated.
Fewer credit cards or store cards always look better on a credit report. Just be sure that you don’t get rid of them all – having a credit card that you borrow a small amount on and repay on time each month is one of the easiest ways to build up a good credit history over time.
If you possibly can, try to avoid taking out new credit cards just before you make your mortgage application as this will put a dent in your credit score.
If you share an account with someone, you share their credit history, including any mistakes the other person has made with their repayments.
Easier said than done when you’re also saving for your deposit, but repaying what you owe will make a big difference to your report. If you can use this to get a better deal on your mortgage, you might well save money in the long run.
This gives you concrete proof of your current address, shows that you’re not moving around too much, and can act as a reassurance to your lender that you’ll be a reliable borrower.
After taking these steps, improving your score (and so increasing the variety of mortgages you have to choose from) means behaving responsibly with your finances over several months and years.
Whatever your credit history, you don’t have to go it alone. At Habito we work with a wide range of UK lenders, including some who consider applications from borrowers with adverse credit histories. We can help you explore the options available to you.
And the best bit? We don’t charge a broker fee for our standard mortgage advice. You may still need to pay lender fees or other product-related costs.
Get started today or find out how much you can borrow with our mortgage calculator.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Habito is a mortgage broker, not a lender. We’re authorised and regulated by the Financial Conduct Authority. This content is intended for general guidance and is not a substitute for personalised mortgage advice.
No, checking your credit score does not hurt it. You can check it as often as you like. That will never damage it.
It depends on the reasons for your low score, but it usually takes at least a few weeks and can take years. If you have a new bank account or credit card, it’ll take a few weeks for information from those to filter through to your credit score. Missed payments, defaults and CCJs stay on your credit record for six years, although the impact on your score of missed payments or defaults typically reduces over time. After six years they’ll be wiped from your report.
If you do spot a mistake, contact the credit provider directly to ask it to correct the mistake. If you need help, a CRA can raise a dispute with the provider on your behalf.
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