facebook logogoogle logo
5.0 Rating | 136 - reviews
facebook logogoogle logo
5.0 Rating | 136 - reviews
facebook logogoogle logo
5.0 Rating | 136 - reviews

Credit Score

When you apply for a mortgage, both you and the bank want the liability to be repaid on time. Unfortunately, this does not work out in every case and lenders want to protect themselves against this risk. For this reason, financial institutions check your creditworthiness (credit score) and depend on this factor not only for their mortgage decision but also for the interest rate they can offer you.

The higher your credit score, the more likely you are to get a mortgage.
The higher your credit score, the more likely you are to get a mortgage.

Need assistance? Leave your details, and we'll get back to you shortly. Request a callback now.

Table of contents
(click to expand)

Lenders, such as banks that provide mortgages and credit card companies, examine your creditworthiness based on your debt history. If you are a reliable customer and pay your money back on time, your credit score goes up; if the lender has problems enforcing its debts, your credit score goes down. The number of points indicates the level of risk involved in lending you money.

The higher your credit score (higher number of points), the more likely it is that the decision will be positive and that you will receive a mortgage on good terms. Conversely, a low credit score (low number of points) may result in your application being refused, or that the terms offered are less favourable.

Why my credit score is important?

A credit score that determines your creditworthiness can affect the financial services and products you use throughout your life. For example, when you apply for a credit card or a mortgage, your credit score will be taken into account when determining whether your application will be approved and what interest rate you will pay. When we’re talking about whole of life insurance or a mortgage with a term of 20 years, the extra costs arising from a low credit score could cost you thousands of pounds!

Remember, however, that each bank in the UK lends on a slightly different basis. This means that if one lender has rejected your application on the grounds of low creditworthiness, this may no longer be an issue for another. Of course, this doesn’t mean that it’s worth applying to every bank in the country, as your creditworthiness may suffer – rejected applications very often lower your credit score. For this reason, it is worth finding out what the reason is after you have been refused.

What influences your credit score?

Your credit score can be affected by a number of factors, including:

  • What percentage of your credit limit you use, and what your total debt is
  • What your financial history looks like
  • The number of hard credit searches that appear on your credit report when you actively apply for credit. These make a mark on your credit file, which lenders may consider when considering whether to extend your credit. Sometimes soft credit searches, which aren’t visible to lenders, may appear on your credit report. Soft searches may be conducted on you to do a background check or authenticate your identification, but they will not be visible to lenders.
  • Whether you are on the register of persons entitled to vote (Electoral roll)

Ready to start a conversation? Fill out our contact form and connect with us today!

Credit Score
Credit Score

Easy steps to improve your credit score

  • Ensure you don’t miss any payments
  • Review your credit report regularly and check that all information is accurate and truthful
  • Closing any unused credit accounts is a good idea because having a large total credit limit can be seen as a red flag by lenders
  • Fill out an election registration form.
  • Whether there have been delays in paying instalments or in paying electricity or water bills

You can read more about creditworthiness in the articles How to improve your credit score? and UK residential mortgage. How much do you need to earn to get one?

Where I can monitor my credit score?

There are several websites in the UK where you can check your creditworthiness. Our company recommends a comprehensive service from Checkmyfile.com. By choosing this site, you will gain:

  • Access to your credit score as calculated by the 3 largest credit rating agencies in the UK: Equifax, Experian and TransUnion
  • The ability to easily compare your credit reports, so you can easily assess your progress in building your creditworthness
  • Identify problem accounts, and take steps to minimize their impact
  • Ability to easily check different types of debt, from your electricity bill to your mortgage
  • View up to 6 years of history of your repayment performance

At Checkmyfile, you can check your credit score for free during the first 30 days. If you want to monitor your credit score, later on, there is a monthly payment of £14.99 after the initial 30 days.

Time to realise the dream of your own four walls

If you’re thinking of buying your own house or flat, it’s not worth putting it off indefinitely. Make an appointment today for a free, no-obligation consultation to learn all about the procedure involved in buying a property and applying for a mortgage. We will help you at every stage of the process so that you can finally live in your own home!

Our team is here to assist you. Contact us by completing the form below.

Table of contents
(click to expand)

Get In Touch

By submitting the form, you consent to the collection and processing of your personal data in accordance with our privacy policy.
5.0 Rating | 136 - reviews
facebook logogoogle logo

Think carefully about securing other debts against your home. Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it.

Your Home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it. Conveyancing services and some forms of Buy to Let mortgages are not regulated by the Financial Conduct Authority.

Your Home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other debts
secured on it.

Your Home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it. Conveyancing services are not regulated by the Financial Conduct Authority.

Extend Finance nor The Right Mortgage Limited can’t provide advice regarding Personal Pensions, Pension planning or investment planning advice. You must seek independent financial advice from a suitably qualified professional financial adviser who may charge you for advice.

Wills, Will writing, Trusts and Trust planning are not regulated by the Financial Conduct Authority.

* We will receive a small fee from CheckMyFile for any referrals.

Get In Touch

By submitting the form, you consent to the collection and processing of your personal data in accordance with our privacy policy.
5.0 Rating | 136 - reviews
facebook logogoogle logo

Skontaktuj się

Wysyłając formularz wyrażasz zgodę na gromadzenie i przetwarzanie Twoich danych osobowych zgodnie z naszą polityką prywatności.
5.0 Rating | 136 - reviews
facebook logogoogle logo

Done!

One of our advisors will contact you ASAP!

Zrobione!

Jeden z naszych doradców wkrótce się z Tobą skontaktuje!