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How to Qualify for a Mortgage with Zero Credit Score

Many mortgage applicants have a zero credit score due to a lack of previous borrowing. Here we explain how you can qualify for a competitive mortgage, even if you don’t have any credit history available.

Almas Uddin
Almas Uddin

Founder and Mortgage Advisor

Almas Uddin2023-05-09
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How to Qualify for a Mortgage with Zero Credit Score

We often think about credit scoring issues where a mortgage applicant has a history of late payments or defaults. However, another common scenario is where you don't have any credit score for a lender to assess your financial responsibility.

In this guide, the Revolution team explains why you might have zero credit score, what it means for your mortgage application, and what you can do to resolve the challenge.

For independent advice with your mortgage requirements, give us a call on 0330 304 3040, or drop a message to [email protected].

Can I Apply for a Mortgage Without a Credit Rating?

You can indeed, but the critical factor is to work with an experienced broker who can make your case for you and negotiate the terms with the selected lender.

Lenders will consider lots of factors, such as your income, employment and affordability. Therefore, although you probably won't be approved for a mortgage through a high street bank, specialist lenders out there can help.

AboutAbout your mortgage
Single or joint mortgage?
What’s your yearly income?

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Do you receive a regular bonus?

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about your mortgage

Based on your yearly income,
you may be able to borrow

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Most lenders will let you borrow 4.5 times your annual salary so, as long as you have a standard 10% deposit, you should be able to borrow this much.

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Depending on your personal circumstances, some lenders may let you borrow 5 times your salary.

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Lenders usually cap the amount they lend at 5.5 times your salary, so it’s unlikely you’ll be able to borrow more than this.

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Why Do I Have no Credit History?

There are many different reasons you might not have a credit score - and this can apply even if you have a stable income and have never taken out any credit borrowing!

Examples include:

  • Not being registered to vote.
  • Not having a permanent address - or living with your parents.
  • Living abroad for several years.
  • No British employment history.
  • Having recently moved to the UK.
  • No credit transactions in the last six years.
  • Not having a UK bank account.
  • Having been in prison.
  • Not paying any utility providers.
  • Being aged under 18.
  • Not having ever borrowed credit.

One of the easiest ways to help improve your mortgage prospects is to register on the electoral roll. This confirms your right to live in the UK alongside ID verification and a fixed address, making you immediately more creditworthy.

What Parts of a Credit Report Does a Mortgage Lender Need to Check?

This depends on the lender and what they need to see. Some mortgage providers have a threshold credit score, and any applicants not meeting that score will be automatically rejected.

Others work on a case-by-case basis and will look at the circumstances before making a decision.

Full mortgage applications require a hard credit check. That means the lender will run a comprehensive search in your credit history, and the review will be visible on your credit file.

How are a Credit Score and a Credit File Different?

Your credit report shows all of your credit activities, including what you have borrowed, whether you made payments on time and your personal information such as address.

A credit score, on the other hand, is a number assigned by the credit-referencing agency. There are three primary credit bureaus in the UK; Equifax, Experian and TransUnion. Each uses a different assessment method and scale.

For example:

  • Equifax provides credit scores out of 700.
  • TransUnion ranks your score out of 710.
  • Experian uses a scale that goes up to 999.

In short, the higher the score, the better. However, some lenders have no interest in credit scores and prefer to look at each application's merit based on the contents of your credit file.

Can I Create a Credit Score Before Applying for a Mortgage?

You can, yes, and we'd recommend taking a few steps to try and establish a credit score if you are struggling to find competitive mortgage borrowing. Some of the options include:

  • Registering to vote.
  • Opening a UK bank account if you don't already have one.
  • Paying utility bills in your own name.
  • Using a contract mobile phone instead of pay as you go.
  • Taking out a low-cost credit card. If you spend just a little and repay it in full each month, it will improve your credit score.
  • Steer clear of payday loans or any emergency credit.

What Mortgage Terms Can I Get if I Have no Credit History?

As we've seen, the mortgage you qualify for will depend very much on the lender's criteria. Most mortgage providers offer maximum loans of 4.5 times your annual income. Some will offer a more generous multiple, although it's not likely if there is a credit issue involved.

Some lenders will accept low credit applicants but offer high-interest charges or require a larger deposit than usual.

Therefore, it is critical to consult an experienced bad credit broker before applying since you will further damage your credit file if you are rejected.

Expert Support with Low Credit Mortgages

Suppose you have a low credit score or no credit history. In that case, we strongly advise getting in touch for an independent assessment of your circumstances and the best lenders to apply to with the highest chances of approval.

Give the mortgage brokers team a call on 0330 304 3040, or email us at [email protected] for practical support right through to mortgage completion.

Almas Uddin
Almas Uddin

Founder and Mortgage Advisor

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FCA disclaimer

The content included in our articles, blogs, web pages and news publications is based on information accurate at the time of writing. Note that policies and criteria can change regularly throughout the UK mortgage lending market, and it remains essential to contact the consultation team to receive up to date guidance. The information included on the Revolution Brokers site is not bespoke to any circumstances or individual application scenarios and therefore is not intended to be used as financial advice. The content we share is designed to be informative and helpful but cannot be relied upon to provide individual advice relevant to your mortgage requirements. All Revolution team members are fully qualified, trained and experienced to provide mortgage advice of an independent nature.

We collaborate with lenders and providers who are regulated, authorised and registered with the Financial Conduct Authority (FCA). Should you require specific mortgage borrowing types, some products such as buy to let mortgages may not be FCA regulated. The Revolution team can provide further information about regulated and unregulated lending as required. Please remember that a mortgage is a debt which is secured against your home or property. Your home can be at risk of repossession if you do not keep up with the repayments or encounter any other difficulties in managing your mortgage borrowing responsibly. This also applies to any remortgage or home loan secured against your property, including equity release products.

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