In this brief guide, we will discuss mortgage lenders that don’t credit score.

Mortgage lenders that don’t credit score

It is very unlikely you will find a mortgage lender who does not credit score you to figure out what your creditworthiness is.

Your creditworthiness essentially indicates how good you are with managing your credit.

In the UK, your credit score will contain your credit history for the past 6years,

Thus means all credit and in some cases, utility products which you have had in the past  6 years.

Your credit score will also contain any county and court decisions which are relevant to your credit behaviour.

Due to the above, there are very few if any mortgage lenders that don’t credit score as most, if not all mortgage lenders will be bound by some regulation by the regulatory body in their country which required them to do all they can to determine the borrower’s ability to repay the mortgage in full.

In the UK, the FCA is the regulatory body which oversees the mortgage market and has strict rules on how mortgage lenders determine the mortgage affordability of borrowers seeking mortgages.

If you are looking for a mortgage lender who does not credit score then it is very likely you have bad credit.

Bad credit could mean:

  • Having no credit
  • Missed credit repayments
  • Late credit repayments
  • County court judgements
  • Debt management plans
  • Bankruptcy
  • Individual voluntary arrangements
  • Home repossession
  • Mortgage default

Why it is important to get credit checked for a mortgage?

It is very important to get a credit check for a mortgage because if you get a mortgage which you end up not being able to afford or end up defaulting on then the mortgage lender would end up repossessing the property and this could leave you with more debt and certainly reduce your credit score further.

More importantly, it will leave you homeless.

Tips on Building your credit score

If you are looking for mortgage lenders who don’t credit score then you may be better placed to invest your time in building your credit score.

You could build your credit score by doing any of the below:

 Pay your bills on time and in full

-Expand your credit. The more types of credit you have which are all paid on time the better your score.

-Register to vote on your main home address

-If you rent and pay your rent on time, then report this to the credit bureaus.

-Ask for a credit limit increase

-Check your credit report for any errors

-Don’t close or cancel Bank accounts or credit cards. The longer you have these open, the better.

-Use only 30% of your available credit such as overdraft or credit cards. This shows that you are not too dependent on credit

-Do not make too many credit applications within 3 months. 1 every 3 months is is acceptable.

-Avoid getting rejected for credit and only make applications where you have a 95% chance of approval or are pre-approved.

-Avoid adverse credit such as payday loans

-Avoid maxing out your credit card or going over your limit as it makes you seem dependent on credit. You might also incur a few fees from your credit card provider.

-Ensure you do not default on any repayments-, even if this is not credit as you can still have negative marks due to owing people or companies from things such as county court judgements, Bankruptcy or Individual voluntary agreements.

Always inform your credit provider if you are having difficulty and they could work something out with you rather than selling your debt to a collection agency which will cost you more

Use a bad credit mortgage broker

Mortgage brokers are important as they can access mortgage products from across the whole of the market in some cases.

This could be over 11,000 mortgage products. This may have some advantages rather than going directly to a mortgage lender.

A mortgage broker will look to understand your financial circumstances and then provide recommendations on which mortgage products may be suitable for you based on your mortgage affordability.

After giving you these mortgage recommendations, most mortgage brokers will seek your consent to apply for a mortgage in principle. 

This will allow you to shop for your home easier as more estate agents and sellers may take you seriously or it will give you confidence that your mortgage is indeed a possibility before you make a full mortgage application. 

Once you have found a home you want to buy and are satisfied with the mortgage offer for your mortgage then the mortgage broker will then look to get you a mortgage offer.

This will come with a key facts illustration document which details out the features of your mortgage including how much you will pay per month.

It will also contain information on if there are any limits such as early repayment fees, or annual overpayment limits.

If you are happy with everything you can then go on to secure your mortgage with the help of a conveyancer.

Your conveyancer will manage the legal searches on the property to ensure there aren’t any issues with it.

They will oversee the sales agreement to ensure it is in your best interest, they will manage the transfer of mortgage funds, exchange contracts with the seller or their conveyancer and set a completion date with the seller or their conveyancer.

In this brief guide, we discussed mortgage lenders that don’t credit score.

If you have any thoughts or questions please let us know below.

John Bate

John has 22 years of experience in financial services. This spans across financial research, financial services (As a qualified mortgage broker and underwriter), financial trading and sales at global investment banks. While working as a publishing research analyst, he covered European bank credit and advised institutional clients on investment strategies at both JP Morgan and Societe Generale. John has passed all three levels of the CFA (Chartered Financial Analyst) programme.