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Improve your credit score for a mortgage
Feeling unsure about how credit ratings can affect your chance of getting a mortgage?
Don't worry, Loqbox is here to help you on your way to buying your dream home
Boost my credit scoreImprovements to your credit score are not guaranteed. Missing payments to Loqbox or other credit accounts may harm your score.
Buying a home is the ultimate goal for many of us
Buying a home is the ultimate goal for many of us
But it's a huge deal! Big deposits, house values rising, a highly competitive market...
It can all seem a bit much, and especially stressful if you suddenly discover you have a "poor" credit score.
If you're worried about getting a mortgage with bad credit
Loqbox can help you improve your credit rating before you apply.
But it's a huge deal! Big deposits, house values rising, a highly competitive market...
It can all seem a bit much, and especially stressful if you suddenly discover you have a "poor" credit score.
If you're worried about getting a mortgage with bad credit
Loqbox can help you improve your credit rating before you apply.
Some things to know about credit scores and mortgages
If you’ve started panic-Googling “how to apply for a mortgage with bad credit” you’re not alone.
So let’s help breakdown the most common questions:
So let’s help breakdown the most common questions:
1. What credit score do I need to get a mortgage?
Technically you don't need one, but we know it's all a bit confusing. What mortgage lenders are looking for is good credit history.
The better your credit score, the more likely you’ll be offered better deals and save more money in the long-term.
That's because mortgage providers are happier to lend money to people with an excellent track record of using credit well.
The better your credit score, the more likely you’ll be offered better deals and save more money in the long-term.
That's because mortgage providers are happier to lend money to people with an excellent track record of using credit well.
2. Can I get a mortgage with a bad credit score?
Yes. People with “bad” credit scores can be approved for mortgages.
But they may come with higher interest rates and a need for a bigger deposit than for someone with a better credit score.
But they may come with higher interest rates and a need for a bigger deposit than for someone with a better credit score.
3. Who decides my credit score?
There are three main credit reference agencies (CRAs) in the UK:
Experian, TransUnion, and Equifax.
And each of them will probably give you a different number for your credit score. A "poor" score with Equifax, might be a "fair" score with TransUnion.
So it’s a good idea to check your score with each CRA before you apply for a mortgage.
Experian, TransUnion, and Equifax.
And each of them will probably give you a different number for your credit score. A "poor" score with Equifax, might be a "fair" score with TransUnion.
So it’s a good idea to check your score with each CRA before you apply for a mortgage.
4. My credit score isn’t what I’d like it to be
What even is a "bad" credit rating, anyway?
Answer: Don’t sweat it!
We want you to know that you’re not defined by that number.
Credit scores are just a way for regular folks like us to see how a lender may consider us for a loan or mortgage. And it's mostly based on how you've used credit so far.
Answer: Don’t sweat it!
We want you to know that you’re not defined by that number.
Credit scores are just a way for regular folks like us to see how a lender may consider us for a loan or mortgage. And it's mostly based on how you've used credit so far.
5. I’m still a bit anxious about my credit score
If you’re really worried, or would rather focus on building your credit rating,
let Loqbox help you boost your credit score to get you ready for your mortgage application.
It’s super easy with our simple credit-building tools and features.
let Loqbox help you boost your credit score to get you ready for your mortgage application.
It’s super easy with our simple credit-building tools and features.
We’re here to help you get mortgage ready!
Loqbox can help to boost your credit history before you take out a mortgage.
We want you to feel good about money and to help you on your way to a richer life — whatever that looks like for you.
We want you to feel good about money and to help you on your way to a richer life — whatever that looks like for you.
Here's how Loqbox can help
Grow your credit score
We report to the three main credit reference agencies —Equifax, TransUnion and Experian.
Get a cheaper mortgage
A better credit score could save you £1,000s on a mortgage and increase your chances of being approved.
Build your savings
Whether it's for your deposit or to get settled in, we help you build a pot of savings at the same time.
Sign up in under 2 minutes
It's quick and easy to get started.
Here's what our lovely Loqbox members think
Mortgages FAQs
How will improving my credit rating affect my mortgage?
It's the golden ticket to lower mortgage repayments and avoid paying a high deposit.
The closer we can help you to an excellent credit score - the better mortgage, credit cards and loan offers you'll get.
The closer we can help you to an excellent credit score - the better mortgage, credit cards and loan offers you'll get.
How much could I save with a better credit score?
Here’s how much having a good credit score can save you on a property valued at £275,000 with a £50,000 deposit*:
An improved credit history could save you thousands on the interest you’ll pay to borrow money – things like credit cards, loans and mortgages.
An improved credit history could save you thousands on the interest you’ll pay to borrow money – things like credit cards, loans and mortgages.
*Mortgage payable over a 25 year period.
◊Based on a first-time mortgage at 4% APRC, and a bad credit mortgage at 4.6% APRC.
*Mortgage payable over a 25 year period.
◊Based on a first-time mortgage at 4% APRC, and a bad credit mortgage at 4.6% APRC.
When will I see the benefit?
Most Loqbox members see a real improvement to their credit report after about four payments, with steady growth as they make all 12 monthly payments.
You might see a dip in your credit score initially, before heading up in the right direction.
We call it the Credit Tick, and it’s totally normal.
It takes a little patience, but the savings you’ll make on credit cards, loans and mortgages are worth it
You might see a dip in your credit score initially, before heading up in the right direction.
We call it the Credit Tick, and it’s totally normal.
It takes a little patience, but the savings you’ll make on credit cards, loans and mortgages are worth it
Could using Loqbox harm my credit score?
Your credit score won't be harmed if you make your payments on time and stick with it through the year.
The aim here is to show a history of good money management to the credit reference agencies. So it doesn't look great to the CRAs if you take out a financial product and then quit before you agreed to pay it in full.
Full transparency from us:
The best way to build your credit score with Loqbox is to make your payments over the year. End your payments sooner and you probably won't see the full benefit.
When you take out financial products you'll likely see an initial drop in your credit score before it starts rising upwards. If you quit Loqbox in the middle of that dip it could leave you with a lower credit score than you started with (we don't want that for you either).
Similarly, if you miss a Loqbox payment, we’d have to report it to the CRAs, and this would harm your credit score.
The aim here is to show a history of good money management to the credit reference agencies. So it doesn't look great to the CRAs if you take out a financial product and then quit before you agreed to pay it in full.
Full transparency from us:
The best way to build your credit score with Loqbox is to make your payments over the year. End your payments sooner and you probably won't see the full benefit.
When you take out financial products you'll likely see an initial drop in your credit score before it starts rising upwards. If you quit Loqbox in the middle of that dip it could leave you with a lower credit score than you started with (we don't want that for you either).
Similarly, if you miss a Loqbox payment, we’d have to report it to the CRAs, and this would harm your credit score.
Isn’t there a quicker way to a better credit score?
We wish! But sadly, there's no magic wand or quick fix.
The aim is to prove to lenders how much of a safe bet you are to lend to.
And we do that by building up your credit history - but no surprises here, building history takes some time to do.
The aim is to prove to lenders how much of a safe bet you are to lend to.
And we do that by building up your credit history - but no surprises here, building history takes some time to do.
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