Why do mortgage brokers need your credit report?


This is a common question we get asked and the answer is very straightforward. In order to determine how much a lender could lend and how much of a deposit you need to get a mortgage, we will need to assess your credit report.

Your credit score does not help in the assessment for mortgage eligibility.


The Credit Score Misconception


Credit Score


The rise in TV adverts with various companies offering access to our credit scores has created something of a misconception these days. Your credit score is one thing, your payment history is another. It’s the payment history that lenders want to know about and the management of your credit accounts, even if you have a high score.

It is also important to note that if you have a low score don’t worry. There are lenders that will base their mortgage decision on the analysis of your credit report, without scoring.


What your Credit Report illustrates better than your credit score

Payment History


The payment history of your individual credit accounts can be complex and so is lender eligibility criteria when it comes to their assessment.

The age of any missed payments, whether it was a mobile phone bill or a loan payment and how many missed payments have occurred. All of these factors play a complex part in determining which lender is most suitable for you. Our expert advisors know how to analyse your credit report and what to look for.


Lenders that Credit Score vs Credit Search

Some lenders will assess your mortgage application based on credit score and some will assess your application based on a credit search. Lenders who credit score will often require a high score with no adverse credit history, whereas lenders who credit search are not basing their decision on a computer says ‘Yes’ or computer says ‘No’ result. We help a lot of customers get a mortgage when they have a poor credit score with lenders that carry out a soft credit search.


What is a soft credit search?

A soft credit search is when a lender will carry out their checks without leaving a footprint on your credit file for other lenders to see. A soft credit search will also not affect your credit score. This is important when your score is low, as too many normal credit searches can impact your rating even further. We see many applicants that we can’t help because they have been carrying out online mortgage agreement checks with nearly every lender, without knowing the consequences of their actions.


Our mortgage experts can help, we access whole of market including specialist lenders.

The first step is to download your credit report. CheckMyFile let you download your credit report for a free trial. They are the only agency to offer an all-in-one credit report from Experian, Equifax and CallCredit.

If you prefer to use an alternative, you can try Experian or Equifax, but they may charge for your full credit report and will only offer your report from a single credit reference agency. We cannot accept ClearScore reports as they currently do not tell us the full payment history of accounts.


Ben - Author


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Article was written by Ben, Glow Mortgage Advisor (CeMAP, BSc Hons)