What to know before a Help to buy credit check (+5 key Tips)

Is there help to buy credit check?

Yes, there is a help to buy credit check when taking out either a help to buy equity loan and a help to buy shared ownership.

The help to buy credit check is carried out by the regional help to buy agency which you submit your help to buy property information form to assess if you meet the eligibility requirements for the help to buy equity loan or shared ownership.

The key things a help to buy credit check will be looking for include:

  • Do you have any bankruptcy orders on your credit file within the last 3 years
  • Do you have any county court judgements on your credit file for more than £500
  • Do you have any loan defaults on your credit file or any late payments on your credit file within the last few months

Can I get help to buy with poor credit?

Yes, you can still get a help to buy property with bad credit as long as you don’t meet any of the disqualifying criteria listed above.

A help to buy mortgage broker should be able to assist you in finding a suitable mortgage lender willing to lend to you with adverse credit.

In this case, adverse credit for you could include:

  • A bankruptcy that is more than 3 years old but is still on your credit file
  • A county court judgement for less than £500
  • Defaults and late payments on credit agreements.
  • A very low credit score.
  • Individual voluntary agreements.
  • A debt management plan

What credit score do you need for help to buy?

There isn’t a defined credit score given out by the help to buy agency for the help to buy scheme. There isn’t much mention of a credit score but rather there are things on your credit file which will make you illegible for the help to buy scheme.

As long as you do not have any of these disqualifying factors on your credit file you should be fine.

What is the help to buy scheme?

The help to buy scheme is a government home buying scheme for first-time buyers and home movers it includes but is not limited to:

The two main first-time buyer government schemes are the help to buy equity loan and the help to buy shared ownership scheme.

If you need financial advice and you live in the UK then you could contact the Money Advice service over the phone or via chat for impartial advice.

You can also contact the debt charity “Step Change” if you are in debt and need help.