1. Check your credit report to make sure everything is accurate and up to date. Some credit referencing agencies, such as Noddle, will allow you to do this for free, or for a charge of £2. If any of the information is incorrect tell them as soon as possible to have it investigated.
2. Try to avoid applying for credit in the six months prior to making a mortgage application. It could look like you are struggling financially and can have a negative impact on your credit score.
3. Since the new mortgage affordability rules in April 2014, there has been closer scrutiny on not only your credit history but also your budgeting and financial planning. It’s worth trying to save a little every month and finish every month with a surplus.
4. Lenders can take into account your available credit limits, and are likely to view low ‘utilisation’ as an indication of low risk. So try to keep the balances on your card accounts as low as possible.
5. It is vitally important to meet any agreed current repayments you have and paying a little more than your agreed minimum card repayments will not only reduce your balance more quickly but will also be a positive factor on your credit report.