Will you always qualify for a mortgage with a 999 credit score?

Will you always qualify for a mortgage with a 999 credit score?

Having a very high credit score can help when you apply for a mortgage, but it does not mean you will automatically qualify.

A 999 credit score is excellent and suggests you have managed your credit well. It may make you more attractive to lenders because it shows a strong track record of making payments on time and using credit responsibly. But mortgage lenders do not make decisions based on the credit score alone.

When you apply for a mortgage, the lender will review the full application and, depending on the lender, may use a credit score or a credit search. This includes your income, deposit, age, employment status, monthly outgoings, credit commitments, bank statements, property type and the size of the mortgage you want. Lenders also have their own internal scoring systems and affordability calculations, which are separate from the score you see on your credit report.

This means you could have a 999 credit score with one of the credit reference agencies and still be declined for a mortgage.

For example, a lender may say no if:

• The mortgage is not affordable based on your income and outgoings

• You have too much credit card, loan or car finance debt

• The property is not suitable based on the lender's acceptance rules

• Your income is complex or difficult to evidence

• You have recently changed job or are in a probation period

• You are self-employed and do not have enough trading history

• The property is unusual or difficult to mortgage

• You have a small deposit and the lender’s criteria are stricter

• Your bank statements show regular overdraft use or gambling

• You want to borrow more than the lender’s income multiple allows

A 999 score is helpful, but it is not a mortgage approval guarantee. It simply means your credit profile looks strong from a credit reference agency’s perspective. 

How does your credit score compare?

Source: Barclaycard 

Can you get a mortgage with a lower credit score?

Yes, it is still possible to get a mortgage with a lower credit score. Some borrowers worry unnecessarily because their score is not perfect, but lenders are often more interested in the details behind the score. If you have a lower score, a lender that conducts credit searches rather than credit scores may be more suitable. 

Minor issues, older missed payments, or a thin credit history do not always stop someone from getting a mortgage. Some lenders are more flexible than others, and specialist lenders may consider applicants who do not fit standard high street bank criteria. The issue is that the specialist lenders are often more expensive. 

Aaron Strutt, product director at Trinity Financial, says: “Many borrowers assume that a 700 - 999 credit score means they will definitely get a mortgage, but lenders do not assess applications in such a simple way. A perfect credit score is a good start, but the lender still needs to check affordability, income, deposit size, bank statements and the property itself."

Trinity's brokers regularly speak to clients with excellent credit scores who still need help finding the right lender because they have bonus income, are self-employed, want a large loan, have high monthly commitments or are buying a more unusual property. Equally, a borrower with a less-than-perfect credit score may still have good mortgage options if the case is packaged properly, but over the years we have spoken to lots of home buyers with 'the wrong type of income' such as foreign income, RSUs or maybe their bonus or commission is higher than their basic salary.

Common reasons to be declined for a mortgage despite a high credit score

A mortgage can be declined for a wide range of reasons, including the use of buy-now-pay-later tools like Klarna and payday lenders. Soft credit checks on a lender's decision in principle help sift through many of these issues, such as affordability and high debt-to-income ratios, even if the debt is well-serviced and has always been paid on time. 

In some cases, the credit file doesn’t contain enough information to generate a proper score. There are also different credit reference agencies that hold different information on their customers.  One lender mentioned that someone applied for a mortgage, but when they reviewed his bank statements, they found he was spending £300 a month at Greggs, which was enough to have his mortgage declined. He replied three months later and had changed his spending habits. 

Trinity Financial's director, Anthony Emmerson, says that it is almost always a missed or late payment on something small that leads people with high credit scores to fail the lender's mortgage checks. He says it is normally something like a phone contract, a gym contract, a water company, or an electricity company that registers a missed or late payment. Generally, under £50 in total, and there is usually no way to appeal. 

Why speak to a mortgage broker?

A good mortgage broker, like Trinity Financial, can help identify which lenders are most likely to accept your application before you apply. This can be particularly useful if your income is complex, you want to borrow a higher amount, you have a smaller deposit, or you are worried about something on your credit file.

Trinity Financial’s brokers work with a wide range of banks, building societies and specialist lenders. They can review your credit profile, income and deposit position and explain which mortgage options may be available.

Speak to a Trinity Financial adviser today

The mortgage market moves fast — and the right advice can make a significant difference to the rate and deal you secure. Get in touch with our team to discuss your options.

Call Trinity Financial on 020 7016 0790 to secure a fixed or tracker mortgage, book a consultation, or use our appointment calendar

The information contained within was correct at the time of publication but is subject to change. It is for general information purposes and is not advice.

The information contained within was correct at the time of publication but is subject to change. It is for general information purposes and is not advice.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage