How to Improve Your Credit Score Before Applying for a Mortgage in 2025
A strong credit score can be the difference between getting approved for a mortgage at a great interest rate or struggling to secure a loan at all. In 2025, mortgage lenders remain cautious, making it crucial to improve your credit score before applying. Here’s how you can do it.
Why Does Your Credit Score Matter for a Mortgage?
Lenders check your credit score to assess your reliability as a borrower. A higher score means:
✔ Better mortgage rates (lower interest costs).
✔ Higher borrowing power (you could be approved for a larger loan).
✔ Easier approval (especially for first-time buyers).
Most mortgage lenders in 2025 require a minimum credit score of 600-650, but for the best rates, aim for 700+.
How to Improve Your Credit Score in 2025
✅ 1. Check Your Credit Report Regularly
Use Experian, Equifax, or TransUnion to check your credit score for free. If you find errors (e.g., incorrect defaults), dispute them to have them removed.
✅ 2. Pay Bills on Time
Lenders want proof of consistent, on-time payments. Set up direct debits to avoid missing due dates.
✅ 3. Reduce Credit Utilisation
Keep credit card usage below 30% of your limit. If you have a £5,000 limit, try not to borrow more than £1,500 at a time.
✅ 4. Avoid Multiple Loan Applications
Every mortgage or credit application creates a hard inquiry, lowering your score. Avoid multiple applications within 6 months of applying for a mortgage.
✅ 5. Register on the Electoral Roll
Lenders verify your identity and address using the electoral roll. Registering can boost your credit score almost instantly.
✅ 6. Keep Old Accounts Open
Long-standing credit accounts show a history of responsible borrowing, which improves your score.
✅ 7. Consider a Credit-Builder Card
If your credit history is limited, a credit-builder card can help. Use it responsibly and pay off the balance in full each month.
💡 Tip: Start improving your credit score at least 6 months before applying for a mortgage.