Getting a Mortgage With a 650 Credit Score

A credit score of 650 can mean different things depending on which credit reference assigned it, but how is this information used when you’re applying for a mortgage?

Here you will learn whether 650 is a good credit score in the eyes of mortgage lenders, what kind of deal to expect and how we can help you get the best rates available.

Is 650 a good credit score for a mortgage?

Whether 650 is a good credit score for a mortgage applicant depends entirely on which credit reference agency assigned it. There are three main agencies in the UK and a score of 650 can mean very different things at each one of them, as you can see below:

• Experian: Scores credit out of 999 and classes a 650 score as ‘poor’

• Equifax: Scores credit out of 1000 and classes a 650 score as ‘good’

• TransUnion: Scores credit out of 710 and classes a 650 score as ‘excellent’

Not all mortgage lenders use the same credit reference agency, so you need to be careful which one you approach, depending on where your score of 650 came from.

If you were assigned a score of 650 by TransUnion, approaching a lender that uses this agency to assess creditworthiness will mean you stand a good chance of getting a low rate. But if your score came from Experian, it might be best to avoid lenders that use that agency.

The most important thing to remember, however, is that not all lenders use credit scoring during the mortgage process. These lenders still check your credit files for potential issues but aren’t concerned about numerical scores and have no minimum you need for approval.

Can you get a mortgage with a 650 credit score?

Yes, absolutely but there are mortgage lenders you might wish to avoid if your 650 credit score came from Experian, as they rate this as a ‘poor’ score. Therefore lenders who use Experian data to help them determine creditworthiness might decline your application.

This does, however, leave you with plenty of potential options as a 650 score from Equifax is considered ‘good’, and at TransUnion, it’s ‘excellent’. So having a score of 650 from one of these agencies means there are lenders who will view your application favourably.

There are also lenders who don’t use credit scoring that you could consider.

In summary, here are your mortgage options with a credit score of 650:

• With an Equifax or TransUnion score of 650 you could consider lenders who use these credit agencies

• With an Experian score of 650, you could consider lenders who don’t credit score

• You can increase the number of approachable lenders by increasing your deposit

Credit scores aren’t the be all and end all when it comes to mortgage eligibility as providers consider many factors when deciding whether to lend to you. Even a lender who uses Experian might offer you a mortgage if there’s a legitimate reason your credit score is 650.

This might include recently moving to the UK from abroad or being a first-time buyer who was previously living with parents and therefore had limited opportunity to build credit.

Tips to improve your mortgage application

Credit scores and credit history aren’t the only factors mortgage providers take into account when assessing eligibility, but with a credit score of 650, preparing a strong application could help you access a wider range of lenders and rates, even if your score is from Experian.

Here are some steps you can take to boost your chances of mortgage approval:

Put down extra deposit

You will need a deposit covering at least 5% of the property’s value to get approved for a mortgage, but putting down more than this (if you’re in a position to do so) can reduce the overall risk the lender is taking on and help you qualify for a more favourable deal.

Build credit where possible

There are quick ways to improve your credit position before applying for your mortgage. These fast fixes could increase your credit score beyond 650 and open up more options.

Ways to build and optimise your credit files include:

• Joining the electoral register

• Opening a UK bank account

• Ensuring all household bills are in your name

• Paying all bills and debts on time and in full

• Take out a credit builder card and use it responsibly

Check your credit files for errors

You can download your credit reports by accessing a free, cancel-anytime trial at Checkmyfile. This service gives you access to all three of the main UK credit reference agencies, and you should check your files with each of them for errors and inaccuracies.

If you spot anything that shouldn’t be there, including outdated information, be sure to flag it up with the relevant credit reference agency so they can remove it for you.

Speak to a mortgage broker

With a credit score of 650, there are some mortgage lenders you might want to avoid, especially if that score came from Experian, who flag it as ‘poor’.

But there could well be options available for you with lenders who don’t use that credit reference agency, and ones who don’t credit score at all. Our brokers have deep working relationships with these lenders and can introduce you to the best one for you.

Teito’s mortgage brokers have access to the entire market and can often arrange exclusive deals with lenders who don’t credit score. Get started with one of our advisers below:

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Which lenders offer mortgages to borrowers with a 650 credit score?

If your credit score of 650 came from Equifax or TransUnion, which assign a positive rating to scores in this ballpark, the following lenders may be an option as they use these credit reference agencies:

• Coventry Building Society

• Halifax

• TSB

• Santander

• Nationwide

Lenders who don’t credit score could also be an option, especially if the reason your middling credit score is adverse credit. They are usually specialist lenders, including:

• Pepper Money

• Bluestone

• Kensington Mortgages

• Scottish Building Society

• Furness Building Society

• Vida Homeloans

Bear in mind that while these lenders and others like them do not use credit scoring to determine eligibility, they will still perform credit checks to review your financial conduct.

The main thing that sets these lenders apart is that they are more interested in the overall strength of your application. If they spot any adverse credit on your files, they will review the age and severity of the issue, rather than base their lending decision on a numerical score.

What interest rate will you qualify for?

The interest rate you qualify for with a 650 credit score may vary depending on several factors. Firstly, the credit reference agency the score came from will play a part, as a 650 credit score from Equifax or TransUnion is considered positive, and therefore lenders who use that agency may view your application favourably.

Rates can vary with lenders who don’t credit score, as many of them are specialist providers who tend to have slightly higher rates than normal due to their flexible criteria.

The reason your credit score is average may also play a part in determining the rates you are offered. If it is the result of bad credit, this can drive up the rates you qualify for, but legitimate reasons such as having been living outside of the UK or being a first-time buyer who has only ever lived with parents could mean you are offered a standard rate.

Why choose Teito for your mortgage needs?

If your credit score is 650, it’s vital to speak to a broker before applying for a mortgage, and there are advisers on our team who specialise in clients with scores in this ballpark.

Our brokers have expert knowledge and access to the entire market, which makes them ideally placed to pair you with the mortgage lender who’s the best fit for your credit profile.

Here are just some of the reasons our customers choose us for their mortgage needs:

• Our brokers specialise in borrowers with credit scores in the 650 region

• Your first consultation is free with no obligation to proceed

• We are 5-star rated on leading review websites

• You can apply for an agreement in principle through us in minutes

Ready to take advantage of a free, no-obligation chat with a whole-of-market mortgage broker and explore what options are available to you? Get started here.