Lending generally needs a good to excellent credit score or rating. I would say that Buy To Let lending typically needs a good to excellent credit score. You would undoubtedly require a good credit score when applying for a residential mortgage because the risk is much higher.
However, lenders go through credit checks very differently. For instance, a client could have missed a mortgage payment but the client’s credit file is excellent. Some lenders decline if they see inconsistent monthly payment even though credit score may be good. Other lenders will focus more on your credit score, and it depends on points gained elsewhere in the file as to whether it will be accepted or not.
Contact a broker and most importantly be entirely transparent about your financial commitments and your credit history. If you get a few declines after applying at several lenders, then I would advise you take a step back and reconsider making any new applications for at least six months while reassessing and fixing any outstanding debts or issues relating to your disapproval.
If you are declined due to your low income, if income is below £25k per annum, then your loan options will be limited.
For more information, visit SmartMortgagesUK and speak to a consultant.