First time buyer tips to boost your credit score

First Time Buyers (FTBs) face many external challenges when trying to get on the housing ladder. House prices, mortgage rates, and property availability are not within most FTBs’ control. Yet something you can have an impact on is your credit score.

Give your score a boost

If you’re a prospective buyer, there are several ways you can build up your credit history and improve your rating:

  1. Have a history! It might sound obvious but little or no credit history can make it difficult for companies to assess you, a common problem for young people
  2. Register on the electoral roll at your current address, even if you live in shared accommodation or at home with your parents
  3. Pay your accounts on time and in full each month; this is a good way to show lenders you’re a reliable borrower
  4. Manage multiple credit accounts successfully, especially over a long period of time; most credit scoring models tend to reward you for having long-standing, mature credit accounts
  5. Keep your credit utilisation low. For example, if you have a limit of £1,000 and you use £500 of that, your credit utilisation is 50%. It is often recommended to keep your credit utilisation below 30%.

Visit our dedicated page for First Time Buyers for more information on how we can help you to achieve your mortgage goals.

As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.
Sources: yourmoney.com; experian.co.uk

 

21 December, 2022

More news

6 February, 2024

It’s a constant bane for house sellers but it isn’t going away.
Gazundering is when a buyer reduces their offer at a late stage of negotiations to try to pressure the seller into accepting a lower offer. Searches for the term rose by 97% between January and Septem

31 January, 2024

Research* has shown that online searches for the phrase ‘when will mortgage rates drop?’ surged
Hopes that rates have peaked heightened in September. After 14 consecutive meetings where rates were increased, good news came when the Bank of England’s Monetary Policy Committee voted to retain Ba

22 January, 2024

A recent survey* has found that, despite the pressures on the property market, nearly a third of buy
44% of those with hopes to buy are portfolio landlords who already own at least 11 properties. When asked about their motivation, just over a third said they were driven by the fall in UK house prices