Yes, there are mortgage lenders that don’t have credit scores but hardly will you find a mortgage lender who’s ready to provide a mortgage loan without a credit score. There might be lenders who may give you a loan without a credit score but you’ll have to prove with everything you have that you can repay the mortgage.
Some people don’t have a credit score for some reason. For some, it’s because they’ve not done enough transactions to get a score. The category of people who may not have a credit score includes people starting their careers and retirees.
Is no credit score as bad as a poor credit score?
A bad credit score is not the same as no credit score. On this note, there are two types of credit scores need to take cognizance. The first is a credit score provided by a credit reference agency and the second type of credit score is given to your mortgage application by a lender. However, you should know that no credit score is better than a bad credit score.
Are you in need of a credit score?
There’s a low probability of finding a mortgage lender who will approve a mortgage application for someone without a credit history. But if you’re lucky, you may find lenders such as specialist building societies who may use their credit scoring process.
These kinds of lenders still carry out a credit check to know if you have any adverse credit history such as CCJS(County Court Judgment payments (car, credit cards, etc.), or arrears like rent or loan repayments.
This mortgage application process has to be done manually which makes the process stressful and time-consuming. And that is why they are not common among established mortgage lenders.
Is it possible to get a mortgage with no credit score?
Getting a mortgage with no credit score is not impossible but first, you must ensure you’re on the electoral roll. This is very important because it’s a way of proving that you’re a legal citizen of the country. It’s also a way of tracking your credit. If you’ll ever be able to sway a mortgage lender to give you a loan with no credit score, you should start with being on the electoral roll.
Also, you have to make a large deposit if possible. If you don’t have enough funds to make a large deposit, you can ask for help from family members.
Building a zero-credit rating into a good one shouldn’t take you more than three months. The process doesn’t involve anything tedious, just you providing a basic credit card, store credit, a mobile phone contract, and some utility bills in your name.
Ensure to make payments in full and on time to prove that you’re not an irresponsible borrower.
Your best chance at getting a mortgage with no credit score is to talk to a professional mortgage broker. At Home Rate Mortgage, we work with the best mortgage companies in TN. We will help you find the best mortgage lender who may not need your credit score at all.
Contact us today to learn more about our services!