Buying your first home is a major milestone. But before you can pick up the keys, you’ll need to prove to lenders that you’re financially responsible, and that starts with your credit score.
Your credit score is one of the first things mortgage lenders look at. A strong score can improve your chances of being approved and help you secure a more competitive interest rate. On the flip side, a lower score could limit your options or make borrowing more expensive.
If you’re preparing to apply for your first mortgage, here are some practical steps you can take to improve your credit score and boost your overall creditworthiness.
What Is a Credit Score?
Your credit score is a three-digit number that reflects how well you’ve managed credit and borrowing in the past. It’s calculated by credit reference agencies based on your financial behaviour, including how much you owe, how reliably you repay debts, and how long you've had credit accounts open.
In the UK, the three main credit reference agencies are:
• Equifax
• Experian
• TransUnion
Each has its own scoring system, so your score may vary slightly depending on the provider. That said, all lenders use this information (alongside other factors) to assess how risky it would be to lend to you.
Why Does Your Credit Score Matter When Applying for a Mortgage?
Mortgage lenders use your credit score to help determine:
• Whether to approve your application
• How much they’re willing to lend you
• The interest rate you’ll be offered
The better your score, the more likely you are to be offered favourable terms. This can make a real difference to your monthly repayments and the total cost of your mortgage over time.
How to Improve Your Credit Score Before Applying for a Mortgage
Here are some realistic, actionable steps you can take to start strengthening your credit score today:
1. Check Your Credit Report
Before anything else, request a copy of your credit report. You can do this for free using services like:
• CheckMyFile (which combines data from all three agencies)
• ClearScore (Equifax)
• Experian or TransUnion directly
Look out for:
• Incorrect personal details
• Outdated addresses or linked accounts
• Missed payments or defaults
• Financial connections with ex-partners
If you spot any errors, contact the credit agency to correct them. Even small inaccuracies can affect your score.
2. Register on the Electoral Roll
This is a quick and effective way to improve your credit profile. Lenders use the electoral register to confirm your identity and address, which helps reduce the risk of fraud.
If you’re not already registered at your current address, you can do so on the official UK government website.
3. Make All Payments on Time
Payment history is one of the biggest factors in your credit score. Late payments on loans, credit cards, mobile bills or utility accounts can stay on your file for up to six years.
To avoid this:
• Set up direct debits for at least the minimum payment
• Keep track of due dates
• Don’t ignore old or dormant accounts
Consistency is key. Paying on time, every time, shows lenders that you’re reliable.
4. Keep Credit Utilisation Low
Credit utilisation refers to how much of your available credit you’re using. As a general rule, try to use less than 30% of your total credit limit.
So, if your credit card has a limit of £2,000, keeping the balance below £600 could work in your favour. High utilisation can signal financial stress, while low utilisation shows responsible borrowing.
5. Avoid Multiple Applications in a Short Time
Each time you apply for credit, it leaves a mark on your credit file. Too many applications in a short period can lower your score and make lenders wary.
If you need to compare options, use eligibility checkers or soft searches where possible - these won’t impact your score.
6. Maintain Older Accounts
The length of your credit history matters. If you’ve had a credit card or bank account for years and it’s in good standing, consider keeping it open, even if you don’t use it much.
Closing old accounts can shorten your credit history and reduce your overall available credit, which may negatively impact your score.
7. Use a Credit Builder Card (if appropriate)
If you have a thin credit file or limited history, a credit builder card can help. These cards typically come with low limits and higher interest rates, but if used responsibly, they can demonstrate good financial habits.
Use them for small, manageable purchases, and always repay in full each month.
8. Check Your Financial Associations
If you’ve had joint accounts or credit agreements (such as a loan with a former partner), their credit behaviour could still be affecting yours.
You can request a financial disassociation if you’re no longer financially connected to someone, another simple way to tidy up your credit report.
9. Be Consistent With Personal Information
Make sure your name, address, and employment details are consistent across all accounts, credit applications, and bills. Lenders look for stability, and inconsistencies can raise concerns during the mortgage underwriting process.
10. Work With a Financial Adviser
Improving your credit score is just one part of the mortgage puzzle. A financial adviser can help you:
• Understand what lenders are looking for
• Find the right mortgage products for your situation
• Avoid common pitfalls that could slow down your application
At Willow Tree Financial Services, we work closely with first-time buyers to make the mortgage journey feel less overwhelming and more manageable. You don’t have to figure it all out on your own.
Visit the resources section on our website for our Budget Planner and our First Time Buyer guide to help too.
Credit Confidence Takes Time: But It’s Worth It
Improving your credit score isn’t about quick fixes. It’s about small, consistent actions that build trust with lenders over time.
Whether you’re months away from applying for a mortgage, or just starting to think about buying your first home, taking steps now to boost your credit score could make all the difference.
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At Willow Tree Financial Services, we offer personalised advice on Financial Planning, Mortgages, Investments, Pensions, Personal & Business Protection, and Wills, Trusts & Estate Planning - all tailored to your individual goals and circumstances.
Call us on 01323 436680, get in touch here, or book an appointment here to get started.
We’re based in Polegate, East Sussex, and support clients across the South East and beyond.
Stay in touch with us on social media:
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Plus, visit our YouTube channel where you can lots of helpful financial advice videos:
http://www.youtube.com/@willowtreefinancialservices
Your home may be repossessed if you do not keep up repayments on your mortgage.
