Could your credit history prevent you from getting a mortgage? Experian research has found that more than a quarter of people in the UK looking to buy their first home before 2016 –  around 1.81 million people  – have missed credit repayments, defaulted accounts and CCJs currently listed on their credit report. And all of these could prevent them from securing a mortgage.

Managing credit accounts such as credit cards, mobile phone contracts and even some utility services can be important in order to build and maintain a good credit rating.

So if you’re looking to get on the housing ladder, how can understanding your credit history prepare you for a mortgage application?  Here are our 5 top tips.   

  1. Check your credit report to make sure everything is accurate and up to date. Tell the credit reference agency you’re using as soon as possible if you disagree with any information on your credit report so they can investigate.
  2. Try and avoid making other credit applications in the six months prior to making a mortgage application, as it could look like you are struggling financially and can have a negative impact on your Experian Credit Score.
  3. Since the introduction of the mortgage affordability rules in 2014, there has been closer scrutiny on not only your credit history but also your budgeting and financial planning. It’s worth trying to save a little every month and finish every month with a surplus.
  4. Lenders can take into account your available credit limits, and are likely to view low ‘utilisation’ as an indication of low risk. So try to keep the balances on your card accounts as low as possible.
  5. It is vitally important to meet any agreed current repayments you have and paying a little more than your agreed minimum card repayments will not only reduce your balance more quickly but will also be a positive factor for your Experian Credit Score.


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