The credit assumption that destroys applications
You’ve saved your deposit, secured stable employment, and you're ready to buy. Then your mortgage application is declined or approved at a much higher rate-because your credit file shows issues you didn’t realise mattered. A forgotten store card, a late mobile bill, or a maxed-out credit card can change everything. Lenders see it all, and each issue affects how much they'll lend and what they'll charge.
Credit scores shape both rates and borrowing limits
Lenders assess risk using your credit score. Borrowers with excellent credit access the most competitive rates, while those with lower scores face higher rates-or outright rejection. The difference between top-tier and poor-tier credit can cost tens of thousands over the life of a mortgage.
Your score also affects how much lenders will lend. Two people with identical deposits and incomes can receive completely different decisions based purely on credit history. Strong credit allows higher loan-to-value options, while weak credit forces larger deposits or smaller mortgages.
What damages your score-often without you realising
Late or missed payments on any account-phones, store cards, utilities, credit cards-stay on file for six years and damage your score significantly. Even being a few days late can matter.
High credit utilisation (using most of your available credit) signals financial stress. Lenders prefer applicants using under 30% of their limits.
Repeated credit applications in short periods create multiple hard searches, suggesting financial instability. Lenders notice this instantly.
Check your files months before applying
Review your full reports from Experian, Equifax, and TransUnion before starting the mortgage process. Lenders use different agencies, so you must review all three.
Dispute errors immediately-wrong addresses, incorrect late payments, accounts you don’t recognise. Resolution takes time, so start early.
Register on the electoral roll. It’s a simple action that significantly boosts lender confidence in your identity and stability.
Improve your score strategically
Pay down credit card balances well below 30% of limits. This improves utilisation quickly.
Avoid closing old accounts-this can reduce your available credit and worsen your score.
Avoid new credit applications in the months before applying for a mortgage. Each application temporarily lowers your score.
Pay every bill on time-perfect recent payment history is crucial.
Your credit preparation plan
Check all three credit reports six months before applying. Correct errors. Register on the electoral roll. Reduce card balances. Avoid new credit. Maintain flawless payment history.
Success isn’t just about deposit size or salary-it’s about credit readiness. Applicants who prepare strategically secure better rates and smoother approvals than those who leave credit checks to the last minute.
Need help preparing your credit for a mortgage? Get expert advice today
