Want to buy a home but aren’t sure how your credit score fits in? The number sitting on your credit report can make the difference between getting a mortgage today or waiting months. Below you’ll find the basics, the score ranges most lenders care about, and easy steps to lift that number fast.
In 2025 most UK lenders use a three‑tier system. Scores 760 + are considered excellent and usually snag the lowest interest rates. Scores between 700 and 759 are good – you’ll get a loan, but the rate may be a touch higher. Anything below 700 is seen as risky; you might still qualify, but expect higher rates or a larger down payment demand.
Lenders don’t just glance at the number. They check your payment history, how much credit you’re using, length of credit history, new accounts, and any defaults. A clean record of on‑time payments can offset a slightly lower score, while a recent missed payment can pull you down fast.
First, pull your credit report from the main bureaus. Look for errors – a wrong late payment can shave dozens of points. Dispute any mistake you find; the bureau must investigate within 30 days.
Next, tackle credit utilisation. Aim to keep balances under 30 % of your total limit, ideally below 10 % if you can. If you have a credit card with a £5,000 limit, try to stay under £1,500 used.
Avoid opening new accounts in the months leading up to your mortgage application. Every hard inquiry can knock a few points off and signal higher risk to lenders.
Old accounts are gold. Keep them open, even if you don’t use them often. The longer your credit history, the better the score.
Finally, set up automatic payments for any loans or credit cards. Consistent on‑time payments are the single biggest factor boosting your score.
Besides the score, lenders also consider your income, job stability, and the size of your deposit. A larger down payment can sometimes compensate for a lower score, but the cheapest way to reduce your mortgage cost is still a higher credit rating.
Quick checklist before you apply:
Follow these steps, and you’ll see your score climb in a matter of weeks. A better score means lower interest, lower monthly payments, and a smoother path to the front door of your new house.
Curious about the credit score you need to buy a house with zero down? Here’s an in-depth, people-first guide for 2025 on qualifying for a no money down mortgage.