Preparing for a Mortgage Application: How to Get Your Credit in Shape
Whether you're buying your very first home or planning to port your existing mortgage to a new property, preparation is key. The UK mortgage market is competitive, and lenders are more thorough than ever when assessing applications. One of the most important things you can do is get your credit profile and finances in the best possible Here’s how:
This guide walks you through how to prepare for a mortgage application — from checking your credit score to avoiding common pitfalls — so you can approach the process with confidence.
1. Check Your Credit Report and Score
The first step is to understand your credit position. In the UK, the three main credit reference agencies are Experian, Equifax, and TransUnion. You're entitled to access your credit report for free, and several services make this quick and easy:
MoneySavingExpert Credit Club https://www.moneysavingexpert.com/creditclub/ (Experian)
ClearScore https://www.clearscore.com/ (Equifax)
Credit Karma (https://www.creditkarma.co.uk/) (TransUnion)
Check your report for:
Any missed or late payments
Incorrect information
Old or inactive accounts
Financial links to other individuals
Tip for first-time buyers: If you have little to no credit history, now is the time to start building it — consider a low-limit credit card used sparingly and paid off in full each month.
2. Correct Any Mistakes
Mistakes on credit files are more common than you might think. It could be something as simple as a misreported payment or an old address that hasn't been updated. If you spot an error, contact the credit reference agency to raise a dispute — they’re required to investigate and resolve it, usually within 28 days.
3. Clear Outstanding Debts Where Possible
Reducing existing debt can improve your credit score and your affordability profile, both of which lenders will assess. Try to pay down credit card balances, overdrafts, or loans before applying for a mortgage.
If you're porting your mortgage and hoping to borrow more, clearing debt could make a big difference to your lender’s decision.
4. Keep Credit Utilisation Low
Credit utilisation is the percentage of your available credit that you're actually using. Ideally, you should be using less than 30% of your total credit limit. For example, if you have a credit limit of £3,000, try to keep your balance below £900.
5. Always Pay Bills on Time
Missed or late payments — even on mobile phone bills or utility accounts — can negatively affect your credit score. Make sure all your payments are made on time, every time.
Set up direct debits or calendar reminders to stay on top of your commitments.
6. Avoid New Credit Applications
Each time you apply for a credit product (loan, credit card, store finance, etc.), it creates a **hard search** on your credit file, which can temporarily lower your score.
In the months leading up to your mortgage application, try not to take on any new credit unless absolutely necessary.
7. Don’t Close Old Credit Accounts
You might be tempted to tidy up your credit file by closing unused cards, but this can actually lower your credit score. Older accounts contribute to your credit history length and help with your overall credit utilisation. If the account has no fees and isn’t harming your score, it’s usually better to leave it open.
8. Understand Affordability Rules
UK lenders are required to assess your affordability carefully. That means looking beyond just your income — they’ll examine your monthly outgoings, regular spending habits, and how much debt you already have.
First-time buyers and movers should:
* Reduce discretionary spending in the months before applying
* Avoid large one-off expenses that show up on bank statements
* Keep bank accounts in good order with no unauthorised overdrafts
9. Get a Mortgage Agreement in Principle (AIP)
Before you start seriously house hunting, it’s a good idea to get a Mortgage Agreement in Principle. This is a statement from a lender showing how much they might be willing to lend, based on a soft credit check and some basic financial information.
It doesn’t guarantee approval, but it shows estate agents and sellers that you’re a serious buyer.
10. Speak to a Mortgage Adviser
Especially if you're a first-time buyer or trying to port a mortgage, speaking to an independent mortgage broker can save time and money. They can help you:
* Understand how much you can borrow
* Find the best mortgage deal
* Navigate lender criteria and affordability assessments
* Understand whether porting your mortgage is your best option — or whether switching lenders could save you more
Final Thoughts
Getting mortgage-ready isn’t just about ticking boxes — it’s about showing lenders you’re a safe, sensible borrower. Whether you’re buying your first home or moving to your next, taking the time to prepare your credit and finances can help you secure a better deal and avoid unnecessary delays or disappointments.
Start early, stay organised, and don’t be afraid to seek professional advice.
