If you’re planning to buy a home in Ashford, Staines, or the surrounding areas, your credit score plays a crucial role in whether your mortgage application is approved. A stronger credit history not only improves your chances of securing a loan, but it can also help you access better interest rates, saving you thousands over the life of your mortgage.
The good news is that there are practical steps you can take to improve your credit score before applying. Here’s a clear guide to help you get mortgage-ready.
1. Check Your Credit Report Regularly
Start by reviewing your credit report with the main UK credit reference agencies: Experian, Equifax, and TransUnion. Mistakes, such as outdated addresses or incorrect financial information, can lower your score.
Correcting any errors early can give your score an immediate boost. You’re entitled to access your credit report for free, so it’s worth checking well before you apply for a mortgage.
2. Register on the Electoral Roll
Lenders use the electoral roll to confirm your identity and address. Being registered at your current address can significantly increase your credit score. If you’ve recently moved, make sure you update your details with your local council.
3. Pay Bills on Time
Consistency is key. Set up direct debits or reminders to ensure you never miss a payment on credit cards, loans, or household bills. Even a single late payment can negatively affect your score and stay on your report for years.
4. Keep Credit Utilisation Low
Credit utilisation refers to how much of your available credit you’re using. As a general rule, it’s best to use less than 30% of your available credit limit. For example, if you have a £3,000 credit limit, try to keep your balance below £900.
5. Avoid Making Too Many Credit Applications
Each time you apply for credit, a “hard search” appears on your report. Too many applications in a short period can make you look financially unstable. Before applying for a mortgage, avoid taking out new loans or credit cards.
6. Build a Positive Credit History
If you’ve never borrowed before, you may not have much of a credit record. Using a credit card responsibly by making small purchases and repaying them in full each month can help you establish a solid credit history.
7. Clear Existing Debt Where Possible
Reducing outstanding debts before applying for a mortgage will not only improve your score but also strengthen your affordability assessment with lenders. Paying off loans or credit cards shows financial responsibility.
8. Keep Old Accounts Open
The length of your credit history matters. Even if you don’t use an older account regularly, keeping it open can help demonstrate long-term financial reliability.
Why Your Credit Score Matters When Buying a Home
Mortgage lenders use your credit score alongside income and expenditure checks to assess your financial reliability. Improving your score before you apply can:
- Increase your chances of approval
- Provide access to lower interest rates
- Give you greater flexibility in mortgage products
Final Thoughts
Improving your credit score doesn’t happen overnight, but taking these steps several months before applying for a mortgage can make a real difference. By preparing your finances in advance, you’ll be in a stronger position to secure your dream home in Ashford, Staines, or the surrounding areas.
Thinking of Buying in Ashford or Staines?
At S J Smith Estate Agents, we’re here to guide you through every stage of your property journey. Whether you’re a first-time buyer or moving up the ladder, our expert team can help you take the right steps towards securing your new home.
View our latest properties here or contact us for advice today.