Getting a Mortgage With No Credit History

There are many reasons someone might not have a credit history. They may have recently moved to the UK, they may be a student just entering the workforce, an expat returning home, or they may be living with their parents. Either way, if you’re looking for a mortgage, there might be options available.

In our guide to getting a mortgage with no credit history, you’ll learn when this is possible, how to go about it and where to turn for the right advice.

Can you get a mortgage with no credit history?

Yes, it’s possible but with no traceable credit record lenders will subsequently need to be much stricter when assessing your application. In particular, they will want to place much more focus on your ability to meet the monthly repayments and the size of your deposit.

This is where a mortgage broker who specialises in helping people with low or no credit history mortgages, can be invaluable. They will already know which providers tend to look more favourably on applicants in these circumstances and find you the best deal available.

How to get a mortgage with no credit history

If you have no credit history, there’s a few simple steps you can take to improve your chances of getting a mortgage. Here’s how we recommend you do it…

How to build your credit score for a mortgage application

Building your credit score is not as hard as it might seem. Most people can build up an acceptable credit rating in as little as three months.

Here’s a few actions you can take straight away which should give your score an immediate boost:

When it comes to credit cards, make sure you pay out the balance in full and use the card for essentials only, such as fuel, groceries etc and avoid buying luxury items. This will show the lender that you are financially responsible.

How much deposit do you need?

The larger the deposit you can put down, the better your chances of securing a mortgage. This is particularly relevant if you currently have no credit history. So, the best advice is to get saving right away!

As a minimum target, you should aim to have between 20%-25% deposit but it’s definitely worth talking to your broker to see if they’re aware of any lenders who may accept a lower amount.

Are there mortgage lenders who don’t credit check?

No, all lenders will carry out some form of credit check as standard practice, but not all of them use the same system.

Most providers use automated mortgage application processes, so you will need to find a lender who is willing to use a much more time-consuming process called ‘manual underwriting’.

Mortgage providers tend to offer unfavourable interest rates to applicants with no credit history, so it’s important that you find the right lender from the outset, as too many applications can be detrimental to your credit score.

Here’s a list of lenders, for example, who will review applications on a case by case basis, which should improve your chances of success if you can provide enough background information:

Whilst there’s some pretty well-known names here, rather than approaching a lender directly, it’s usually much smarter to speak with a broker first. They can help prepare your application and ensure it documents everything correctly.

Why use a specialist zero-credit mortgage broker?

As you can see, there are some obstacles to overcome when applying for a mortgage with no credit history, but it’s not impossible. If you meet the providers criteria outlined above, it’s possible to be able to apply for a mortgage, even without a credit rating.

But it is essential that you talk to a mortgage broker who is a specialist in finding mortgages for people with little or no credit history.

They will help you find a mortgage deal that suits your own individual financial circumstances. Make an enquiry and we’ll match you with a broker who specialises in customers with little-to-no-credit history today.