You probably already know that when you apply for a mortgage (or any type of credit), the lender will do a credit check. The results of that check will help them to decide whether to accept or decline your application.

However, did you also know that your credit score can determine what rates you're offered? The better your score, the better the rates you'll get.  When it comes to your mortgage, this can make a difference of £1000's when it comes to how much you pay back so it's definitely worth seeing if you can improve your credit score before you apply.

So HOW can you make sure your credit score is in tip-top form when you apply for a mortgage or remortgage? Here are 5 tips that can make a huge difference...

1) Check Your Credit Reports

Lenders will base your score on a number of factors - and many of those factors come from the information held on your credit report. There are 3 main Credit Reference Agencies in the UK (listed below) and it's best to check your report with each as they may hold slightly different information.

By checking your reports you can make sure you're aware of everything being stored about you - and you can check for any errors and make sure these are corrected before you apply for your mortgage.

Experian

Equifax

​Call Credit

2) Register on the Electoral Roll

An important part of any mortgage application is verifying your identity.  This is generally done as part of the credit check and one of the key pieces of information used, is the electoral roll.

If you're not registered then this actually lowers your score and can not only effect the rates you'll be offered but may even cause you to be declined.

Register Here

3) Pay on Time

Your credit report doesn't just contain information about the credit you owe, it also includes your payment history on those accounts, so if you make late payments, these can have a negative impact on your credit score.

Where possible, set up direct debits to make it as easy as possible to pay on time.

4) Close Cards You Don't Use

Did you know that the amount of credit that you already have available can also impact your credit score? Companies need to make sure that you won't become over-committed if they give you a mortgage and so if you already have a lot of existing credit available (such as un-used credit cards), this can lower your score.

Close down any credit that you're not using and you may well see your score improve - and the rates you're offered!

5) Don't Make Too Many Applications at Once

Another sign that you might already be financially over-committed is if you've recently made a lot of applications for credit. Many people don't realise that by doing this, you will negatively impact your credit score.

A great way to avoid too many credit searches is by seeking the help of a mortgage broker. Here at BB Mortgages, we can search 1000's of deals for you so you don't have to keep making applications blindly.

To request a call back from one of our friendly advisers, just pop your details on the form below and we'll be happy to chat to you about how we can find you a great deal - no matter what your circumstances.