How to Improve Your Credit 6-12 Months Before a Mortgage Application

There’s a lot to consider when applying for a mortgage, from financial checks to submitting what can feel like a never-ending stream of documents. Before you start the application process, it’s worth following a credit checklist that could help improve your chances of a successful outcome. 

Improving your credit health six months before a mortgage application is doable.When you apply for credit, the lender doesn’t actually look at your credit score. It’s the information on your credit report that counts, which includes your payment history on your existing credit agreements, court records and even your address history.

Six months gives you time to spot anything that needs attention before a lender starts looking, and our guide shows exactly what they want to see and what steps we recommend to give you the best chances of success when you make an application.

How to increase your credit score quickly

It’s easy to get hyper-focussed on getting your score as high as possible when you’re gearing up for a mortgage application, but this number doesn’t actually inform the lender’s decision.

That being said, understanding your score, which is calculated using the information on your credit report, gives you a handy cheat-sheet to show you how a prospective lender might interpret your credit history.

There’s no guaranteed way to increase your credit score quickly, and it isn’t always possible, simply because some changes take longer than others to show up and make an impact.

That said, there are several practical steps you should take now if you plan to apply for a mortgage in the next 6-12 months.

1. Check your credit report with Checkmyfile

We recommend checking your credit report throughout your mortgage journey, including before, during, and after.

When you check what's on your credit report, look out for:

• Missed payments.

• Accounts in default.

• County Court Judgments, Individual Voluntary Arrangements, or bankruptcies.

• High account balances.

• A high debt utilisation ratio.

• Outdated financial associations.

• Accounts you don't recognise.

• Incorrect addresses or personal information.

Not all lenders report to every credit reference agency (CRA). That’s why at Checkmyfile we bring together your data from Experian, Equifax and TransUnion in one place, so you can see the most detailed picture of your credit history in one convenient place.

Checking your own report is a soft search, meaning it won't affect your credit score. You can find out all about the different types of search on your report in our guide. 

2. Register to vote

If you're eligible but aren't already on the Electoral Roll, it’s worth registering even if you don’t intend to vote. This can be done through the GOV.UK website. 

Lenders use information from the Electoral Roll to help verify your details. If you're missing from it, or your details don't match your application, that process can be harder.

Don't leave this until the month before applying. Electoral Roll information can take between one and three months to update on your credit report, so the sooner you get this sorted the better.

3. Correct any errors on your file

Some of the common errors you might find on your credit file include:

• Incorrect name (spelling, missing middle name, surname changes).

• Incorrect addresses.

• Incorrect account balances.

• Missing or incorrectly filed payment histories.

• Financial associations who are no longer relevant. 

Keep in mind that most lenders update the CRAs on a monthly basis, so it could take 4-6 weeks for changes to your accounts – like paying off a balance or updating your account details – to appear on your report.

If any of the information you see on your accounts is incorrect or hasn’t been updated in over two months, it’s best to contact the lender or organisation that supplied it and ask them to investigate.

At Checkmyfile, we also offer our Dispute Resolution service for simpler queries, like removing old financial associations, or if you've had trouble resolving an issue with the lender directly.

4. Start developing positive habits

Positive habits, like making all of your payments on time, can have a huge impact on your credit file. A missed payment can stay on your credit report for six years for open accounts, or 6 years from the closure date on closed accounts. Its impact may reduce over time, but mortgage lenders will still see the missed payments on your file.

If you're struggling to remember to make payments or meet them, some people consider setting up Direct Debits to avoid this. Even though the new positive markers don’t erase the older negative ones, this shows prospective lenders that you’re now making a real effort to manage your accounts responsibly.

And simply think about how and what you're spending. If you're getting to the end of the month with no disposable income, lenders will question whether you can afford a mortgage payment. 

When making an application, you will be asked to provide bank statements, usually for three to six months.

5. Pay existing balances

Look at how much of your available credit you're using. This is known as credit utilisation. For example, if you have £5,000 available across your credit cards and use £4,000, your utilisation is 80%.

If you're already using a lot of the credit available to you, a new lender like a mortgage provider might worry about whether you'll be able to keep on top of another payment commitment.

6. Avoid opening new credit accounts

The six months before a mortgage application isn't the best time to start applying for new credit unless you really need it. When you apply for credit, the lender carries out a hard search, which will be recorded on your credit file. Unlike soft searches, this kind of search could impact your score and is visible to prospective lenders.

One search isn't necessarily a problem, but several in a short period can lower your score and may make lenders question why you're suddenly applying for so much credit. They can see the application, but not the outcome, so they may think you’re taking on a lot of new credit at once.

New borrowing can also increase your monthly commitments and affect mortgage affordability. If you do need to take out new credit, it’s best to use eligibility checkers that do soft searches before making a full application.

7. Make sure your details are consistent everywhere

Check that the format of your name and address you use with your bank, lenders, Electoral Roll listing and future mortgage application all match.

And if you've recently moved, update your current address with existing lenders.

Credit reports are built by matching information from different sources, like your lenders and the Electoral Roll. Ensuring that your details are consistent across the board gives you the best chances of having all the right information connected to you when you make your application.

Get ready for your mortgage application with Checkmyfile

You could improve your credit health six months before a mortgage application, but you don't necessarily need a spotless credit history to get a mortgage. It's better to use that time to understand your credit report, correct anything that doesn’t look right, and build positive habits before you apply.

Checkmyfile is the only service that shows you your data from all three of the UK's CRAs side by side. This means you see everything that a mortgage lender could see before you submit your application. 

And if something doesn't look right or you just need some extra support, our UK-based customer care team is here to help.

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