When you’re thinking about buying a home or remortgaging, your credit score might not be the first thing on your mind—but it plays a big role in what lenders will offer you. Whether you’re a first-time buyer or looking to move or remortgage, understanding how your credit history affects your mortgage application can help you feel more confident and prepared.
What is a Credit Score?
Your credit score is a number that reflects how reliable you are when it comes to borrowing money. It’s based on your financial history – things like credit cards, loans, mobile phone contracts, and even utility bills. The higher your score, the more likely lenders are to see you as a safe bet.
Different credit reference agencies (like Experian, Equifax, and TransUnion) may give you slightly different scores, but they all look at similar things.
What is Adverse Credit?
Adverse credit simply means you’ve had some financial hiccups in the past. This could include:
- Missed or late payments
- Defaults
- County Court Judgements (CCJs)
- Bankruptcy
- Debt management plans.
Having adverse credit doesn’t mean you can’t get a mortgage – it just means you might need a bit more help finding the right lender. That’s where a mortgage broker like us can really make a difference.
How credit commitments affect your application
Credit commitments are any ongoing payments you make towards borrowed money – like car finance, personal loans, or credit cards. Lenders will look at these to work out how much you can afford to borrow for your mortgage.
Even if you’ve never missed a payment, having lots of credit commitments can reduce the amount a lender is willing to offer. They want to make sure you’ll be able to keep up with your mortgage payments alongside everything else.
These also include buy now pay later agreements or agreements where you pay in 3 instalments these are all loans and can count against your affordability.
Tips to improve your chances of a successful mortgage application
Here are a few simple things you can do to boost your credit profile before applying for a mortgage:
- Check your credit report – look for any errors or outdated information and get them corrected.
- Register on the electoral roll – this helps lenders confirm your identity and address.
- Keep credit usage low – try not to max out your credit cards. Using less than 50% of your limit is ideal.
- Avoid taking out new credit – in the months leading up to your application, avoid new loans or finance agreements.
- Make payments on time – even one missed payment can affect your score.
- Speak to a broker early – if you’re worried about your credit history, getting advice early can help you find the right lender. This is where giving us a call can really help: we can help you navigate all this.
My final thoughts
Your credit score doesn’t need to be perfect to get a mortgage but understanding how it works – and how your current financial commitments play a role – can help you make smarter decisions. If you’re unsure where you stand or want tailored advice, we’re here to help guide you through the process.
Whether you’re buying your first home, moving up the ladder, or remortgaging, we can help you find the right solution for your situation.
Good luck, drop us a line if you need help and support.
I hope you found this guide helpful,
Emma
If you would like to check your credit report before giving us a call, please see the link below for Check My File.
By clicking the link, you will need to register your details with Checkmyfile and enter into a free 30-day trial period. This will allow enough time for you to register your information and download your report. You are free to cancel this trial period at any time during the 30-day free trial period without penalty. Should you fail or choose not to do so, Checkmyfile will charge you a subscription fee of £14.99 per month thereafter.
- To get the best from this service, please ensure you register all your primary and/or associated addresses within the last 6 years.
- Emma Mortgages Ltd will receive a payment of £12 per free trial entered into via the link to Checkmyfile’s website. This is payable whether you cancel the trial period or not.
- It should be noted that lenders will not be assessing the report produced from Checkmyfile and will undertake their own research and assessment.
* By clicking the link you’re departing from the regulatory website of Emma Mortgages Ltd. Neither Emma Mortgages Ltd nor Quilter Financial Planning are responsible for the accuracy of the information contained within their site. Details of how to unsubscribe or cancel this service, is available directly from the Checkmyfile website under their T&C’s which states “If you wish to cancel your subscription, please log in and send us a Secure Message at any time, email us, or call us on our Freephone telephone number 0800 086 9360 during normal office hours. In all cases we will provide you with a cancellation reference code in confirmation.