Worried your credit score might be too low to get on the property ladder? You're not alone. A poor credit history doesn't automatically mean you're out of options. In fact, there are several ways you can still secure a mortgage in the UK – even if your score’s looking a bit bruised. Here’s how it works, and how Habito can help you navigate it all.

Understanding Credit Scores

In the UK, your credit score is a number that reflects how reliable you are at borrowing money and paying it back. Lenders use this score to work out how much of a risk you might be. A low score doesn’t mean you can’t get a mortgage, but it can limit your options or lead to higher interest rates. Your score is based on things like your payment history, how much you owe, and whether you've had any defaults or CCJs (County Court Judgements).

Mortgage Options for Low Credit

Even with a low credit score, there are mortgage options out there. You might need to go with a specialist lender who works with people in your situation. These lenders may offer products such as:

• Bad credit mortgages – designed for people with missed payments or defaults
• Guarantor mortgages – where a family member agrees to step in if you can’t make payments
• Joint borrower sole proprietor mortgages – if a family member helps pay but doesn’t co-own the property

Bear in mind, these mortgages often come with higher interest rates and stricter terms – but they can be a solid step towards owning a home.

Improving Your Credit Score

If you’re not in a rush, taking a few months to improve your score can boost your mortgage chances. Here’s how to make a difference:

• Register to vote – being on the electoral roll helps lenders verify your identity
• Pay all bills on time – every on-time payment gives your score a nudge up
• Keep your credit usage low – using less than 50% of your credit limit is ideal
• Check your credit report for errors – and get any mistakes fixed

How Habito Supports You

At Habito, we know that not everyone’s financial history is perfect – and that shouldn’t stop you from owning a home. Our expert mortgage brokers work with a wide panel of lenders, including high-street names and specialists. While we don’t cover every lender, we can compare a broad range of suitable options, including those who consider applications from people with low credit scores. We’ll help you explore the right options, understand the costs, and guide you every step of the way – all for free.

Whether you’re just starting to explore or ready to apply, Habito’s here to make homeownership easier, no matter your credit score.

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