Can I get a loan if I’ve just moved to the UK?

Why your credit history doesn't move with you

UK lenders use three credit reference agencies — Equifax, Experian, and TransUnion — to check how applicants have handled borrowing in the past. These agencies only hold records of UK financial activity. They have no access to your history from another country.

When you first arrive, your UK credit report will be largely empty. To a lender, a blank credit report (often called a thin credit file) can feel just as uncertain as a poor one.

What do lenders look at when applying for a loan?

Because lenders can't see your past credit history, they'll pay close attention to other details when they review your application. Here's what they typically want to see:

What lenders check	Why it matters
Visa or immigration status	Lenders need to confirm your legal right to live and work in the UK
Income and employment	Proof that you can comfortably afford the repayments
UK bank statements	Shows how you manage money day to day
Time at your current address	Stability can be reassuring to lenders
Electoral roll registration	Being registered may help your credit score, if you're eligible

 

The more evidence you can provide, the more confident a lender can feel.

What loans are available for new UK residents?

Loans for new UK residents can be harder to find at high-street banks, but there are options worth knowing about:

• Credit builder loans — Unlike a traditional loan, you don't receive the money upfront. Your repayments build up in a savings account you access at the end, and each payment is reported to the credit agencies to help grow your score.
• Homeowner loans — If you own property in the UK, you may be able to borrow against it in the form of a secured loan. For most people who've recently arrived, this won't apply just yet.
• Guarantor loans — Although now less common, these loans involve a trusted person, such as a friend or family member with a good UK credit history, agreeing to cover repayments if you can't. This gives the lender more security and can open doors that might otherwise be closed.

How to start building your UK credit record

Building your credit record from scratch doesn't have to take long. These steps can help:

• Register on the electoral roll if you're eligible — Some non-UK nationals can register, depending on their nationality and visa status.
• Open a UK bank account — A basic account is a solid first step, even without an overdraft.
• Consider a credit builder credit card — Use it for small purchases and pay the full balance each month.
• Put household bills in your name — Utilities, a mobile phone contract, and broadband can all contribute to your credit record.

Getting your first UK loan as a new resident

Getting a loan as a new UK resident takes a little patience, but it’s not impossible. Start building your credit record as early as you can, keep your finances in good shape, and look for lenders who understand your situation.

For free, impartial guidance, these services are available to everyone:

• Citizens Advice — 0800 240 4420
• MoneyHelper — 0800 011 3797
• National Debtline — 0808 808 4000
• StepChange — 0800 138 1111