Yes, having a fair or good credit score is very important when applying for a new or existing mortgage. Your credit score is one of the things that mortgage brokers, lenders and banks look at when determining your eligibility, including other factors such as your income, equity in your current home, employment status, age and current debt levels.

By having a good or fair credit score, it not only boosts your eligibility for a mortgage, but can help you access the best mortgage rates on the market because you are deemed to be a safer person to lend money too. Over the course of the mortgage term, this could help you save hundreds or thousands of pounds per month on your mortgage bills.

Based on rates as of May 2024, a good credit score customer can pay 4.64% per month on their mortgage, compared to someone with bad credit who might pay 7.3% (Source:

What is a Credit Score and Why is it Important?

A credit score is a numerical value which gives an indication of how good you are to lend to – for products including car finance, mortgages, credit cards and loans. You are automatically given a credit score in the UK when you turn 18 and it is a score that you build up over time by paying off different things like credit card bills, utility bills and even mobile phone bills.

With your score ranging from 0-999 (higher is better), your credit score does not usually stay still, it is something that improves or decreases over time based on how well you are paying off your current debts and bills.

A credit score is important because it is essentially your ticket to financial freedom and the ability to borrow money through credit cards, get a mortgage and buy a house or even use car finance and buy a car. When it comes to credit cards and personal loans, credit checks are pretty much standard with every application. Without a good credit score, you will struggle to get access to mainstream financial products needed to live your life.

But with a bad credit score which is achieved by missing lots of payments over a long period of time, not only is it hard to get access to credit and finance, but you will always suffer by paying very high rates of interest.

How is a Credit Score Formed?

Credit score information is managed by credit reference agencies such as Experian and Equifax and when a mortgage broker or lender wants to check your score, they will usually pay one of these agencies a small fee each time.

The information about you is managed in real-time, so if you miss a payment today, if you will impact your credit score tomorrow – and so all potential lenders and creditors have an up-to-date insight into your financial position and will not lend to you if they are seeing recent defaults and payments in arrears.


what is credit score made up of


Your credit score is made up of multiple things including:

  • Payments history (35%)
  • Amounts owed (30%)
  • Length of credit history (15%)
  • New credit (10%)
  • Credit mix (10%)

Does My Credit Score Affect My Remortgage?

Yes, your credit score, whether it is good or bad will affect the rates you pay when you remortgage.

When you get a mortgage, it is often for a few years, such as a 2-year fixed or 5-year variable and after this period expires, you get moved onto the Standard Variable Rate (SVR) which is often very high. So it is common for people to remortgage under fresh terms, but if their credit score is worse since their first mortgage, the rates and terms could be significantly worse or they may struggle to get approved.

Does it Matter if My Credit Score is Getting Worse and I Need a Mortgage?

Yes, it does matter if you need a mortgage but your credit score is getting worse and you are behind on various payments. To get a mortgage and qualify for the best rates, you should have a stable income, employment, not more debt than you can handle and a good or fair credit score.

There are a number of things you can do to maintain your credit score or build it up, including:

  • Using credit builder credit cards – this can help you get into the swing of paying off credit on time and this will help build up your score
  • Join the electoral register – one of the easiest things you can do is join the electoral register for free and it adds credibility to your name and your credit status
  • Close accounts you don’t need – having multiple store cards or credit cards does not make your credit look good, regardless of whether you use them, potential lenders think that it is dangerous to have access to so much credit. So very simply, just remove the cards you don’t use or need.
  • Disassociate from people with bad credit – if you share joint accounts or credit cards with spouses or family members who have bad credit, you are often ‘guilty by association’ and it is assumed that you will be helping them financially, even if you are not. If you are sharing an account with someone with bad credit, simply go solo.
  • Check your credit score regularly – you can check your credit report for just £2 or sign up with one of the credit reference agencies who will send you monthly updates or you can check on demand. Being on top of your credit score can be very useful to get that number as strong as possible.

Do Bridging Lenders Care About Your Credit Score?

Interestingly, not as much. For bridging lenders, they look more at the value of the property you are borrowing against or for and its potential value. Whilst some lenders and brokers do consider credit scores, it is not as vital to be approved and funded. Some providers just don’t want to see recent arrears or bankruptcy, but some lenders offer bridging loans to help people come out of these circumstances, so there is certainly lenience.