Posted on Aug 16, 2016

Mortgage Application – Tips for Getting Better Credit Rating

Part of the process our mortgage advisers in Basingstoke and Frimley have to go through is to ascertain the credit rating of the client.

So we thought we would put together some tips to help you get a better credit rating, after this will help you get a better mortgage rate.

Lenders use your credit rating to help in deciding whether you qualify for credit, how much they can allow you to borrow, and on a number of instances, the level of interest they will charge you. Your credit rating generally affects your borrowing limits for financial products like mortgages, loans, and credit cards.

It’s advisable to avoid anything that negatively impacts your credit rating when you want to take out a mortgage. When your rating with creditors isn’t very appealing, there are a couple of things you look out for and fix.

High Current Debt Levels

Banks, credit card, and mortgage companies may not be too confident about lending you additional funds if already your credit is over stretched. Making late or missing on your payments, whether on credit cards, personal loans, or utility bills or mortgage, stays on your personal credit file for a minimum of six years in the UK.

Too Many Credit Applications at Once

Don’t submit too many credit applications in a rush. Lenders tend to translate that as the act of a desperate borrower. The key lies in spacing out applications. If you simply wish to compare different mortgage rates, let the lender register on your credit report that it was only a ‘quotation search’.

UK lenders will know that yours was an information search, not representing an actual application for a mortgage credit, so it won’t negatively impact your future credit rating.

Credit Report Mistakes

Lenders use your credit report as part of their credit score assessment process. Therefore, mistakes appearing on the report need to be corrected fast. If something doesn’t apply to you or is incorrect, immediately contact the credit reference agency to have it removed or investigated. For just £2, you have the right to view your credit report.

Other Considerations

Not being a registered voter on the UK electoral register as lenders use it in verifying that indeed you are who you claim to be.

Lenders tend to feel more comfortable when they can see that you have been living at one physical address for a considerable duration. So moving your home too frequently may be a disadvantage.

Your credit score gets badly affected in case you have received a county court judgment (CCJ) or decree in Scotland because of an unpaid bill. In the UK, CCJs will remain on your credit file for 6 years.

When you continually keep on exceeding your limit for overdraft and then you fail to deposit fresh funds into the personal account, it contributes to a bad rating.


The only means of credit usually available to a borrower who has poor credit ratings is through the sub-prime market. Here, would-be borrowers get charged interest rates that are quite high, reflecting the perceived risk levels. Even in such cases, the mortgage company may not give you their advertised rate of interest. You may get a higher rate depending on how poor your credit rating is. The key in terms of boosting your credit rating lies in avoiding the pitfalls described above and taking necessary remedial steps.

If you need further advice or help contact out mortgage advice specialists in Basingstoke and Frimley

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