Top tips for improving your credit score before applying for a mortgage

Electoral roll

Registering on the electoral roll can give an instant boost to your credit score – it also helps the lender be able to identify where you live

Try not to move house/jobs too often

Lenders like you to appear stable, so if you can help it, try not to move home and job too often before applying for a mortgage

Check your credit file regularly

Make sure your address, DOB and spelling of your name is correct on your credit file and report any errors or mistakes on your file. This is also important for you to be able to spot any fraudulent activity on your file and report it before it escalates.

Remove old financial associates

If there is a financial associate (someone who you may have had joint bills/mortgage with) on your credit file who has missed payments or other credit issues this could affect your ability to get a mortgage with some lenders, if they are no longer financially associated you can request this is removed from your credit file

Avoid taking out new credit agreements before applying for a mortgage

Taking out something new on finance can temporarily reduce your score so avoid taking out anything unnecessary on finance before applying for a mortgage.

Keep credit usage low

If you using all of your available credit every month then this can lower your score and some lenders can decline due to this. For example if you have a credit card with a £1000 limit, try not to let the balance go above £500 each month.

Keep debt to income ratio low

Some lenders don’t allow a high debt to income ratio, so for example, if you have an income of £30,000 per year and have over £15,000 on finance, some lenders will reject even if you are managing your payments. Try to keep your total debt lower than 50% of your annual salary.

•  Don’t draw cash out on a credit card

• Avoid payday loans

• Keep gambling to a minimum

• Keep out of your overdraft

• Save

• Manage your money/pay on time