9 ways to improve your credit history before applying for a mortgage

Why your credit history matters for mortgages

Your credit score is one of the most important factors when applying for a mortgage. It can help lenders assess risk and decide whether to approve your application. When applying for a mortgage, providers generally look for indicators that you’re good at handling your money and can keep up with payments, even if interest rates rise.

How lenders use credit information

When applying for a mortgage, lenders access your credit report from agencies such as Experian, Equifax and TransUnion. They review payment history, outstanding debts, income, outgoings, credit utilisation and the length of your credit history to calculate a credit score. Lenders may also use their own internal scoring systems and will consider these alongside any other criteria when reviewing your mortgage application.

 

A higher score could improve your chances of being approved for the amount you want to borrow, while a lower score may limit your options. It may also impact the interest rates you're offered throughout your mortgage term.

What good credit can mean for your mortgage rate

A strong credit score may help you unlock better mortgage deals with lower interest rates. Even a small difference in rate could help you save money down the line.

1. Check your credit report early

Checking your credit report well in advance of applying for a mortgage can give you time to spot and resolve problems. Errors, outdated information and unknown accounts can all affect your credit score. You may want to start reviewing your report at least six months before you plan to apply.

How to get your credit report in the UK

Some of the most widely used credit reference agencies are Experian, Equifax and TransUnion. Services like ClearScore and Credit Karma are also available.

 

Each agency usually holds slightly different information. If you’re looking to improve your credit score, checking with more than one may provide a clear picture. Reports often update monthly, allowing you to track progress as you implement changes.

What to look for in your report

You may want to look for missed payments, accounts you don't recognise and incorrect personal details, such as old addresses or misspelt names. Look at your credit utilisation across all cards and overdrafts.

 

If you’ve been bankrupt or had a County Court Judgement (CCJ) or an Individual Voluntary Arrangement (IVA), it will show on your credit history for six years, which may influence some lenders’ decisions when you’re applying for a mortgage.

• A CCJ is issued for non-payment of a debt

• An IVA is where you agree to manage repayment of a severe debt to avoid being made bankrupt

How often to check your score

It may be worth checking your credit score at least once a month when actively preparing to apply for a mortgage. Regular monitoring helps you track improvements and spot any new issues quickly. Checking your own report is recorded as a soft search, which shouldn’t impact your credit score.¹

How to remove financial links with another person

If you’ve previously shared financial products with someone, such as a former partner or housemate, you may be financially linked on your credit report. This may negatively impact your credit history, but you can request a notice of disassociation, so you’re no longer financially linked. You can usually submit the formal request for this notice through a credit agency. If you have a joint loan with a former partner, you won’t be able to be financially split until it’s been paid off, so you might want to make this a priority.

2. Correct any errors on your credit file

Is something on your record that shouldn’t be? Does one of your bank accounts still have your old address on file? Getting these mistakes corrected by contacting the credit reference agencies often takes only a few minutes, but can make a big difference.

How mistakes can harm your score

Errors on your credit file can affect your credit score and how lenders interpret your financial history. A missed payment recorded incorrectly, a fraudulent account or an old address linked to someone else can all affect lending decisions. When applying for a mortgage, unresolved errors may result in rejection or less desirable rates.

How to dispute incorrect entries

You can contact the relevant credit reference agency directly to raise a dispute if there are errors in your file. You’ll often need to provide evidence to support your case, such as bank statements or correspondence confirming account closure. Agencies must investigate and respond within 28 days. If the issue remains unresolved, you can escalate it to the Financial Ombudsman.

3. Pay bills and debts on time

Whether you’re paying rent, a utility bill or credit card debt, a late or missed payment can lower your credit score. If a payment is flagged on your credit history, some credit reference agencies allow you to add a short explanatory note. While this won’t change your credit score, it can give lenders helpful context when reviewing your report.

Payment history and credit algorithms

The credit score algorithm calculates your score based on numerous factors, including payment history. Lenders typically see on-time payments as a sign that you can manage mortgage repayments reliably. Consistently meeting your payment obligations is widely regarded as one of the key ways you can boost your credit score.

Automating payments to build reliability

It’s easy to forget a payment, so setting up automated direct debits for regular payments could help you stay on top of bills, subscriptions, loan repayments and credit card payments.

Pay off your debts

If you owe money, paying off or reducing your debts before applying for a mortgage could improve your credit score and how lenders view your application.

4. Reduce your credit utilisation

Keeping your credit utilisation low is typically considered an important factor in boosting your credit score.

What is credit utilisation?

Credit utilisation refers to the amount of available credit that you’re currently using. Your utilisation rate is calculated as a percentage, based on your credit limit and available balance. ²

How to lower your credit balances

You may want to aim to use no more than 25% of your available credit at any time to improve your credit score.³ Aim to pay off your credit card balance in full each month, wherever possible, rather than carrying debt forward. If you can't clear the balances in full, you could try making payments above the minimum amount set by your bank or credit provider.

How lenders view high balances

High credit balances could be seen as a sign of financial pressure, even if payments are made on time. Reducing your overall balances in the months leading up to your mortgage application could help improve your credit profile.

5. Avoid unnecessary credit applications

Multiple applications in a short period of time could lower your credit score and may raise concerns for lenders assessing your mortgage applications.

If you need to apply for more credit

Where possible, try to avoid taking on new credit, such as loans or car finance, in the six months before applying for a mortgage. If you need new credit, you can apply well in advance to give the enquiry time to age on your report. Carefully timing applications may help protect your credit score.

6. Keep older credit accounts open

The age of your credit accounts can contribute to your overall credit score. Longer credit histories demonstrate responsible borrowing, which lenders often view positively. Closing accounts could potentially harm your credit score, depending on your circumstances, so it’s worth weighing up the pros and cons first.

Why the length of history matters

Older accounts with clean payment records can boost your credit score by showing lenders that you are reliable. Closing old accounts removes this positive data and can shorten your average credit age, which can reduce your score.

When it's okay to close an account

Accounts with annual fees and high credit limits or those linked to former partners may be worth closing depending on the circumstances. If closure is necessary, doing so may give your credit score time to stabilise before lenders assess your application.

How keeping credit accounts open helps long-term scores

Maintaining older accounts can build a longer, more established credit profile over time. Combined with other good credit habits, this gradual improvement to your credit score can strengthen your position with every passing year. It also helps to build a financial track record, which could be important for your mortgage prospects and chances of accessing competitive rates.

7. Maintain a stable financial profile

When applying for a mortgage, frequent changes to your address, employment or bank accounts can raise questions about reliability. Consistency across all areas of your financial life can support a strong financial profile.

Address history and consistency

Lenders and credit agencies use your address history to verify your identity and assess stability. Frequent moves can complicate credit checks and occasionally result in errors on your credit file. Gaps or inconsistencies in address history may slow applications or trigger additional identity checks. Keeping records up to date across all accounts and credit files can help avoid these issues.

Employment and income stability

Lenders often prefer applicants with consistent employment history when assessing mortgage applications. Frequent job changes or employment gaps may raise questions about income stability. If you’re self-employed, you may be asked to provide additional records to demonstrate consistent income.

Avoid frequent account changes

Regularly opening and closing bank accounts may signal instability to lenders. Maintaining a primary current account with a clean record can help build a clear, reliable financial footprint.

Save more for your deposit

You might be able to apply for some mortgages with a 5% deposit, but a larger deposit may be beneficial, depending on your circumstances. It can show the mortgage provider that you’re good at saving and may increase your equity in the property. For more information, check out our deposit savings guide.

8. Register to vote

Registering to vote can help improve your credit score, as it helps lenders to confirm your identity and address against the information you have provided on the electoral roll. You can register to vote on the website. You’ll need to know your National Insurance Number and answer a few simple questions. website. You’ll need to know your National Insurance Number and answer a few simple questions.

If you’re a non-European foreign national, you should be able to register to vote, but you can send the credit reference agencies specific documents that prove your residency instead.⁴ They can then add a note to your record, which the mortgage provider can see.

9. Get professional advice before applying

Professional mortgage advice is particularly valuable if your credit score isn't perfect. Advisers understand lender criteria in detail and can identify the most suitable products for your circumstances before you formally apply.

Use a mortgage adviser or broker

Mortgage advisers may be able to provide you with a wider range of products to suit your unique circumstances. This can help when matching your financial profile to lenders most likely to approve your application, preventing wasted applications that leave marks on your report. A broker's expertise may be the difference between approval and rejection at critical stages.

What questions to ask an adviser or broker

You can ask your adviser or broker which lenders are most suitable for your specific credit score, what improvements would make the biggest difference and how long improvements typically take to show. They can provide valuable insights that may help you improve your credit score before applying for a mortgage.

Free vs paid advisory services

Many mortgage brokers or advisors offer free advice, earning commission from lenders rather than charging borrowers directly. Fee-based brokers typically charge between £300 and £500 but may offer exclusive deals that can help offset costs. 

If you’re ready to buy in London, take a look at our new homes. Whether you’re a first time or existing buyer, we have a wide range of offers to help you make your next move.

References:

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1. https://www.experian.co.uk/consumer/guides/searches-and-credit-checks.html ↩
2. https://www.moneysupermarket.com/credit-score/credit-utilisation-ratio/ ↩
3. https://www.experian.co.uk/consumer/credit-cards/guides/credit-limits.html ↩
4. https://help.equifax.co.uk/EquifaxOnlineHelp/s/article/I-ve-recently-moved-abroad-can-I-still-check-my-credit-history-with-Equifax ↩