Your mortgage application success depends heavily on your credit history – but with multiple credit reports showing different results, which one really matters?
Many mortgage applicants check their credit score with one provider, feeling confident about their rating, only to discover vastly different scores elsewhere.
Some find they have an excellent score of 900 with one agency but only 600 with another.
The reality is that UK mortgage lenders don’t rely on a single credit score. Each has their own specific way of assessing your creditworthiness, using information from multiple sources.
Understanding this process will help you prepare properly and increase your chances of mortgage approval.
Understanding Credit Reports
In the UK, three main credit reference agencies collect and maintain credit information: Experian, Equifax, and TransUnion.
Each agency creates its own unique report about your financial behaviour, leading to different scores and assessments.
Recent research shows that up to 35% of credit information varies between agencies.
For example, your Barclaycard might report to Experian and TransUnion but not Equifax, while your Virgin Money account reports to Equifax alone. This partial reporting explains why you’ll see different scores – Experian rates you from 0-999, Equifax uses 0-1000, and TransUnion works with 0-710.
What’s more revealing is how this information reaches lenders.
When you apply for a mortgage, lenders see far more detail than just a credit score.
They receive comprehensive reports showing your payment history, credit utilisation, and length of credit relationships. Many lenders have confirmed they don’t even look at the scores these agencies provide – instead, they analyse the underlying data to create their own assessment.
Read more: What information is on a credit report?
How Mortgage Lenders Check Your Credit
Most UK mortgage lenders check your credit history with at least two reference agencies, and many use all three.
HSBC, for instance, primarily uses Experian and TransUnion, while Nationwide checks all three agencies.
This multiple-agency approach gives lenders a more complete picture of your financial behaviour. When checking your report, lenders look beyond basic scores to examine specific aspects of your credit history.
They’ll review details like:
- Your payment history over the past six years
- How much of your available credit you currently use
- Any past financial links with other people
- The age and mix of your credit accounts
- Recent applications for credit
What Credit Agency Do Mortgage Lenders Use?
Mortgage lenders do not use just one credit agency and there’s no way of knowing which agencies.
Most lenders check multiple credit reference agencies, typically using at least two of the three main agencies.
They then use this information, along with their own internal data, to create a credit score just for their purposes.
Read more: What is a Credit Reference Agency?
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Beyond The Credit Score
Your credit history forms just one part of a larger assessment.
A senior underwriter at a major bank recently confirmed that they consider credit information alongside factors like:
- Your income and employment stability
- The size of your deposit
- Your existing financial commitments
- The property’s value and type
For example, someone with a perfect credit score but a small 5% deposit might be declined, while another applicant with a few minor credit issues but a 40% deposit could be approved.
Lenders take a balanced view, looking at your overall financial situation rather than focusing solely on credit scores.
Getting Your Credit Report Ready
Starting your credit check process early makes a real difference.
Research by UK Finance shows that borrowers who check their credit reports 6 months before applying are 60% more likely to get mortgage approval.
You’ll want to examine reports from all three agencies, as each might hold different information. By law the Credit Reference Agencies (CRA) have to provide you with a copy of your report.
Each agency offers free access to your credit information.
Experian’s basic service comes through their website, while Equifax partners with ClearScore and TransUnion works with Credit Karma.
Paid subscriptions, ranging from £7-£15 monthly, offer extra features like real-time alerts and detailed score analysis, but the free services show all the key information lenders check.
When reviewing your reports, pay close attention to your active credit accounts, payment history, and address information.
Recent data from UK Finance shows that 1 in 5 credit reports contains at least one error. Finding and fixing these issues early gives you the best chance of mortgage success.
Read more: Your Credit Report Explained
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Common Credit Report Issues
Credit report problems range from simple mistakes to more complex issues.
Address errors appear frequently – many people find old addresses they’ve never lived at or current addresses missing entirely. A recent survey by Which? found that 8% of UK adults discovered incorrect address information on their credit reports.
Financial associations can also cause unexpected problems.
If you’ve ever shared a joint account or mortgage with someone, you might still be linked to their credit history. These links remain active until that account is closed or you specifically request their removal through a ‘notice of disassociation‘.
Electoral roll registration remains really important. Being registered at your current address can boost your chances of mortgage approval significantly.
Read more: How to remove financial associations from your credit report
Improving Your Credit Profile
Quick Fixes
Some credit improvements can happen within weeks.
- Electoral roll registration takes just 5 minutes online and appears on your credit report within 30 days.
- Breaking unwanted financial associations requires a simple application to each credit reference agency – they usually remove these links within 14 days.
- Bank account and credit card address updates also make a quick difference.
- Make sure all your active accounts show your current address.
- Any mismatches between addresses on different accounts can raise red flags with lenders.
Longer Term Solutions
Building stronger credit takes time but brings lasting benefits.
- Using a credit card responsibly shows lenders you can manage credit well.
- Keep your credit utilisation low – recent data shows that people using less than 30% of their available credit are three times more likely to get mortgage approval.
- Space out any credit applications carefully. Each application leaves a record on your credit report that lenders can see for 12 months.
- Multiple applications in a short period might suggest financial difficulties, even if you were just shopping around.
By speaking to a mortgage broker around six months before you need a mortgage will allow them time to look at your credit situation and make some suggestions to improve it.
How a Mortgage Broker Helps
Mortgage brokers bring valuable insights about how different lenders assess credit.
For the best results start speaking to an adviser six months before applying for a mortgage. Get copies of your credit reports for them to look at.
After assessing your situation they will be able to make valuable recommendations, improving your chances of a successful application.
Brokers know which lenders accept applications from people with less-than-perfect credit histories and which ones have stricter requirements. This knowledge can save you from making unsuccessful applications that might harm your credit score further.
Many brokers have access with lender underwriters, allowing them to discuss borderline cases before making formal applications. They can explain any credit issues in context and highlight positive factors that might balance out past problems.
Consider this real example: A first-time buyer had a default from three years ago, but their broker knew a lender who would consider the application because they had a 25% deposit and a strong payment history since the default. Without broker guidance, this buyer might have faced multiple rejections before finding the right lender.
Read more: Mortgage brokers explained
What To Do Next
Begin by getting your free credit reports from all three agencies, or use Checkmyfile.
Check every detail carefully – addresses, account information, and any financial links to other people. If you spot anything incorrect, raise disputes with both the credit reference agency and the organisation that provided the information.
When you’re ready to move forward with a mortgage application, contact your broker. They’ll look at your complete financial situation, not just your credit history, and can guide you towards lenders most likely to approve your application.
Frequently Asked Questions
Check your credit reports at least 6 months before applying. This gives you enough time to spot and fix any issues, and for changes to appear on your reports. Some corrections can take up to 2 months to process.
Read more: Guide to applying for a mortgage
No, most UK lenders check at least two agencies, but their preferences vary. For example, HSBC mainly uses Experian and TransUnion, while Nationwide checks all three major agencies.
Read more: What is a Credit Reference Agency?
When applying for a joint mortgage, lenders will check credit reports for both applicants. They usually assess the lower score more heavily, as this represents the higher risk. Both applicants’ incomes and credit histories influence the lending decision.
Read more: Am I Responsible for My Spouse’s Debt?
No, checking your own credit report creates a ‘soft search‘ which doesn’t impact your score. Only ‘hard searches‘ from actual credit applications affect your score.
Read more: Will Checking My Credit Report Affect My Credit Score?
Hard searches from mortgage applications stay visible for 12 months but affect your score most in the first 3 months. Multiple applications in a short time can significantly impact your score.
Read more: What is a hard credit search?
Yes, but options may be limited. Some lenders consider alternative evidence like rent payment history or utility bills. A larger deposit often helps in these cases.
