With house prices and interest rates edging lower, first-time buyers and remortgagers alike may be looking to secure a new mortgage deal in the coming months.
However, the higher a person’s credit score, the more chances they’ll have of being accepted for a mortgage – and one with a lower rate, making it key to manage this “as early as possible”, experts have said.
John Webb, senior consumer affairs manager at Experian, said: “With the news that mortgage rates are starting to fall, lots of people will be looking for a new mortgage deal.
“Checking your credit report as early as possible gives you time to do things like improve your score, review your borrowing history or break outdated financial links.
“The higher your credit score, the more likely you are to secure your mortgage and get a better rate. Saving you money in the long run.
“If you’re hoping to get on the property ladder in 2024 then check out my four tips below.”
Check your credit score
Firstly, Mr Webb urges people to check their credit score “right away” and consider how it can be improved.
He explained: “This gives you plenty of time to see where you stand or make improvements.
“Key things to do are reducing debt, especially on credit cards, and registering on the electoral roll.”
Minimise credit applications
Try not to apply for new credit accounts in the months before applying for a mortgage. Mr Webb said: “If you do this a few times, it can negatively impact your credit score.”
Cut back on spending
Lenders may go through a person’s expenses in detail for the three months before they apply for a mortgage. According to Mr Webb, they do this to calculate how much of a person’s disposable income they spend to ensure they can manage monthly repayments.
He added: “If you’re careful with spending, then it will help your affordability checks.”
Do your research
Organise paperwork in advance of an application, including payslips and bank statements, to help streamline the process.
Mr Webb said: “Use comparison sites like Experian, or quotations, to check mortgage deals without affecting your credit score.
“You can also consider free mortgage brokers, such as L&C Mortgages, for expert guidance.”
