Can you get a mortgage without a credit history?

It’s no secret that your credit history matters a lot in determining whether or not you qualify for a mortgage. But what if you don’t have credit? Can you get a mortgage without a credit history? Let’s find out.

What is a credit history and why is it important?

Basically, credit history is a record of all the debts you have accumulated and how you paid them off. This information is contained in your credit report. Debt can take the form of mortgages, credit card bills, student loans, utility bills, bank loans, or telephone contracts.

Why is your credit history important? Well, lenders need to see your ability to pay off your debts to determine if you can pay off any credit they can offer you.

Typically, credit reporting agencies (CRAs) collect data from lenders to generate a credit score. This credit score is a three-digit number used to determine the reliability of your repayment of borrowed money.

There are three main rating agencies: Experian, Equifax, and TransUnion.

  • Experian assesses your credit score as 999. A score above 881 is good and above 721 is fair.
  • Equifax assesses your credit score over 900. A score above 670 is good and above 580 is fair.
  • TransUnion assesses your credit score as 710. A score above 604 is good and above 566 is fair.

Can you get a mortgage without a credit history?

You can get a mortgage without a credit history, but it’s not as easy as you might think. These types of mortgages are commonly referred to as No Credit Mortgages or No Credit Score Mortgages. These mortgages are likely to have very high interest rates to reflect the risk that the lender is taking in lending to you.

There can be a number of valid reasons why you might not have a credit history. For example, you may have just turned 18. However, if age is not a factor, not having a credit history can seem suspicious to lenders, making it difficult to obtain credit.

The first thing you might want to do is figure out why you don’t have a credit history. You may:

  • Come from a wealthy family and didn’t need credit
  • are under 18
  • Live with your parents and don’t have bills in your name
  • You don’t have a UK bank account
  • I recently moved to UK
  • You do not have a work history in the UK
  • You don’t have a permanent UK address
  • Are not registered on the electoral list (electoral list)

It is very unlikely that a lender will offer you a mortgage if you are not registered to vote and do not have a UK bank account. It may therefore be important to check these two boxes beforehand.

Then do some research to find mortgage lenders who don’t offer mortgages. They are usually much more realistic and willing to consider other factors besides your credit score. For example, are you making a large deposit? Do you have a stable job and income?

Keep in mind, however, that hiring the services of mortgage brokers can be beneficial, especially if you want to make the process easier and increase your chances of success.

What if you don’t have a credit history?

It’s not uncommon for mortgage lenders to insist that you have a good credit history. If this is the case and you can’t get a mortgage without a credit history, it’s never too late to start building a good credit rating.

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