First Time Buyers (FTBs) face many external challenges when trying to get on the housing ladder. House prices, mortgage rates and property availability are not within most FTBs’ control. Yet something you can have an impact on is your credit score.

Give your score a boost

If you are a prospective buyer, there are several ways you can build up your credit history and improve your rating:

1.  Have a history! It might sound obvious but little or no credit history can make it difficult for companies to assess you, a common problem for young people.

2.  Register on the electoral roll at your current address, even if you live in shared accommodation or at home with your parents.

3.  Pay your accounts on time and in full each month; this is a good way to show lenders you’re a reliable borrower.

4.  Manage multiple credit accounts successfully, especially over a long period of time; most credit scoring models tend to reward you for having long-standing, mature credit accounts.

5.  Keep your credit utilisation low. For example, if you have a limit of £1,000 and you use £500 of that, your credit utilisation is 50%. It is often recommended to keep your credit utilisation below 30%.

As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.