What is a credit score?
When you apply for a mortgage, one of the first things lenders will want to check is how you have managed any borrowing in the past. They do this by looking at your credit score, which is essentially a number that represents your credit history. When calculating this score, many factors are considered, including whether you make monthly payments on time, how much of your available credit you are using, and what your total debts are.
The higher your credit score, the lower risk you are considered to be by lenders, which means any mortgage application you make is more likely to be accepted. Conversely, the lower your score the higher the risk lenders will consider you, which means they may be wary about offering you a mortgage.
Is your credit score lower than you expected? The good news is that there are plenty of things you can do to improve it and boost your chances of having your mortgage application accepted.