Almas Uddin
Founder and Mortgage Advisor
06 Dec 2023
How Can I Repair my Credit Score to Get a Mortgage?
Having credit scoring problems can mean being rejected by a mortgage lender. However, there are lots of specialist bad credit mortgage providers, and if you can ensure your credit report is in the best possible shape, there is usually a solution out there.
Here we'll explain a few steps you can take to repair a damaged credit score to make it easier to apply for mortgage lending.
If you need any help with credit issues during a mortgage application or to find a home loan you are eligible for following credit problems, give the Revolution team a call on 0330 304 3040 or email us at [email protected].
Step One - Get a Copy of Your Credit Report
First, you will need to review your credit report to check what information is included. The mortgage advisors team can help with this as an initial step to see what sort of problems you are dealing with and how these are likely to be assessed by a mortgage provider.
In the UK, there are three credit referencing bureaus. Each is different and uses a variable scoring method, so it's ideal to access all three from:
- Experian
- Equifax
- TransUnion
Step Two - Update Your Credit File
Once you have your credit files, check through them carefully. If there are any errors or inaccuracies, these need to be queried and resolved before applying for a mortgage.
You can also check any associated addresses, accounts or people. Any old accounts you don't use any more can be closed, and you could repay small debts to clear up your credit report.
Step Three - Register to Vote
The easiest way to instantly boost your credit score is to register on the electoral roll. This action shows a lender that you have a stable, traceable address and makes you more creditworthy.
Step Four - Always Be on Time with Repayments
Next, you want to build a long, stable history of making your repayments on time. Particularly for existing debts, having six months to a year of reliable repayments will reflect well in the mortgage assessment process
Step Five - Don't Apply for Unnecessary Credit
If you're working on improving your credit file to get a mortgage, the last thing you want is for a lender to see multiple credit searches.
Soft credit reports don't appear on your file. Still, many applications for credit cards, loans or other credit that require a hard report can make it appear that you are desperate for borrowing or aren't managing your finances responsibly.
Try not to use your overdraft if you can avoid it. Being up to the limit on any credit account is also harmful. Therefore, if you can try not to use the majority of the facility, it will demonstrate good credit management.
Step Six - Pay Back What You Can
You'll want to reduce your total debts as much as possible. Therefore, if you can chip away at larger balances or clear smaller loans entirely, it will improve your position.
Having one primary bank account without any issues is ideal. It makes it easier for a lender to review your earnings and expenditure and streamlines the mortgage application process.
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