Credit Building > Can you get a mortgage without a UK credit history?

Can you get a mortgage without a UK credit history?

Wollit Team3 minute read · Updated 4th July 2024

Getting a mortgage without a UK credit history and credit score can be hard but not impossible.

Let’s look first at the reasons why you might not have a UK credit score yet, what you can do to build your credit history, and which mortgage lenders are more likely to consider your application.

Why don't I have a UK credit score yet?

There could be many reasons why you might not have a credit score in the UK yet. Here are a few of the most common ones:

You recently moved to the UK: this is by far the most common one.
You’re still living with your parents. This again is very common. If you may not have had bills in your name, there is no data yet for the credit reference agencies to use for calculating your credit score.
No UK bank account. If you only use e-money or prepaid accounts like Monese, you don’t have a credit history either.

How can I get a UK credit score?

Your credit score is calculated automatically the moment you start building your credit history. Building your credit history is crucial if you want to get a mortgage or any other kind of loan in the UK. This is because absolutely all lenders in the UK have to run a full credit check before considering your loan application.

Here are some steps you can take:

Register to vote at your current address. This should be your first step. While not technically a part of your credit history, being on the electoral vote helps lenders verify your identity, and as such it’s an important piece in your credit score.
Open a bank account. A prepaid account might be easier to use and get approved for, but you’ll need a real bank account if you want to build a credit history. Banks like Barclays and Monzo are friendly to newcomers to the UK and people with no credit history.
Try to get the utility bills in your name when you rent.
Get a mobile phone contract instead of always using a SIM-only plan, too. For most people this is actually the very first credit agreement in the UK. This is the moment where you actually start building your credit history.
Consider getting a credit builder card. Credit builder cards can be a decent way of building your credit history because your repayments will be reported to the credit reference agencies, which build your credit history. However you should be careful because they do come with very high interest rates and fees, as well as very low credit limits. if you max out your credit limit or even if you use more than 25% of it, you might actually see that your credit score goes down instead of improving.
Consider downloading a specialised credit building app. One such app is Wollit. Wollit is an app that reports your monthly subscription as loan repayment, helping you build your credit history without the risk of high-interest charges or going over your card limit. It can even report your monthly rent payment to Experian, adding another line in your credit report that shows lenders you're responsible and pay your bills on time.

Which mortgage lenders accept applicants with no credit history?

Despite what you may think, not all lenders reject applicants with no UK credit history. Here are some lenders that may be more willing to consider your application:

HSBC and Virgin Money will look at people who are not on the electoral register yet.
Santander and Skipton Building Society need to be able to check if someone can pay back a loan before they can look at their application more. Others may need something else to show where you live, like 3 years of bank statements.
Precise Mortgages usually need people to have been living in the UK for at least 36 months, but may make an exception if someone had to work abroad for a short time as part of their job.

Also, if you are coming back to the UK after living in another country, there are other lenders who will look at your application, but most like it better if you are going straight into a job or have been back in the country for a certain amount of time.

However, you should keep in mind that even if you can get a mortgage with a limited credit history, you will usually have to pay much more in interest rates and other fees. And even a small difference in interest rates can make a huge difference over the whole course of your mortgage.

This is why the best thing you can do is to build your credit history and improve your credit score first, and then apply for a mortgage.

Doing this will ensure that you can get a mortgage on better terms and you'll pay less in interest. It'll also give you access to a wider pool of mortgage lenders not only the very few might accept applications from people with limited credit histories.

Luckily, now there are many apps that can help you build and improve credit.

One such app is Wollit. Wollit is an app available both on Android and iOS, and it works by reporting a fixed-fee monthly subscription as a loan repayment to all three credit reference agencies. This helps you build your credit history and directly influences your credit score.

On top of this, Wollit can also report your monthly rent payment to Experian. This can add another line in your credit report that shows lenders that you’re reliable and pay your bills on time, helping you make the most of your rent while you prepare to become a homeowner.