Our experience with clients going through mortgage processes reveal that people usually just prioritise raising the deposit and neglect other issues like improving their credit score. We’ve put together basic credit score boosting tips that we have gathered from our mortgage advisory partnerships over the years;

1 Prove where you live

Register yourself on the electoral register. The process is easy for all councils in the UK. There is an easy online registration process through Gov.uk.  You can do this even if you’re living with your parents or in shared accommodation.

2 Build your credit trail

Having little or no credit history can make it challenging for companies to evaluate your credit worthiness, potentially resulting in a lower credit score. This is often an issue for young people and newcomers to the country. You can gain significant points by having the basics like phone, sim or  computer equipment on contract. High value assets, e.g Motor Vehicles can boost your credit score but will also has a limiting effect on your overall affordability with the mortgage lenders.

3 Make regular payments on time

Paying your accounts on time and in full each month is an excellent way to demonstrate to lenders that you are a reliable borrower and capable of managing credit responsibly.

4 Keep your credit card utilisation low

Your credit utilisation is the percentage of your credit limit that you are using. For example, if your credit limit is £2,000 and you’ve used £1,000, your credit utilisation is 50%. Typically, a lower percentage is viewed positively by lenders and will increase your credit score. If possible, aim to keep your credit utilization below 30%.

5 Check for errors and report any mistakes on your report

Even small errors, like a mistyped address, can impact your credit score and lead to a lender rejecting your application. Check your credit report to ensure all information is accurate and up to date.

6 Avoid moving home a lot if you can

While it’s not always avoidable, keep in mind that lenders prefer to see stability in your circumstances. Frequently moving homes might make lenders suspect you’re having trouble paying rent

7 Keep old accounts open and show a long credit history

Demonstrating to lenders that you can successfully manage multiple credit accounts, especially over a long period, is beneficial.

There are dozens of other tips out there, but we feel that these basic ones are important in understanding your credit score and form a good foundation for building it towards getting your mortgage.

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