Credit Scores: First-Time Homebuyer’s Guide to Boosting Your Mortgage Eligibility - Part 3

Part 3 of 3

Welcome to the final part of our blog series for first-time buyers who want to understand and improve their credit score before applying for a mortgage. So far, we’ve covered in:

Part 1: What credit scores are, what affects them, and how to improve yours

Part 2: What score you need, how brokers can help, and getting a mortgage with a low score

Now in Part 3, we’re focusing on 'How to build and maintain a strong credit profile', not just for getting your mortgage approved but for staying financially resilient as a homeowner. Whether you're six weeks or six months away from applying, these habits and tools will help you stay mortgage-ready and financially confident.

Or, if you’d rather you can book your free 30-minute consultation now. 

1. Build smart habits that support long-term credit health

• Pay Bills on Time! Every Time!

Late payments are one of the biggest credit score killers. Setting up direct debits or calendar reminders for due dates can prevent small mistakes from doing long-term damage.

• Keep credit utilisation low

Use less than 30% of your available credit limit. For example, if your credit card limit is £1,000, aim to stay below £300 at any one time. Even if you pay it off in full, lenders look at usage snapshots during the month.

• Keep old accounts open

Your credit history length matters. Even if you no longer use an old card, keeping it open (with no fees) helps maintain a longer credit timeline.

• Avoid frequent credit applications

Multiple hard searches in a short period can hurt your score. Space out credit applications, and use soft search tools to check eligibility first.

• Understanding Hard and Soft Credit Checks 

When you apply for financial products like mortgages, credit cards, or loans, lenders need to assess your creditworthiness. This is done through credit checks, which come in two forms soft and hard searches.

Soft Credit Checks (a.k.a. Soft Searches)

A soft credit check is a basic review of your credit file. It gives the lender (or tool) a high-level view of your credit health without delving too deeply.

When do soft checks happen?

• Checking your own credit score (via apps like ClearScore or Credit Karma)

• Pre-qualification tools on lender or comparison websites

• Background checks by employers or landlords

• Quote tools for car insurance or utilities

They’re a safe way to understand your mortgage eligibility before you apply. Many mortgage brokers and lenders offer soft search tools to help you check your options without risk.

Impact on your credit score:

None. Soft searches don’t affect your score and aren’t visible to other lenders (only to you). You can do these as often as needed without any negative consequences.

Hard Credit Checks (a.k.a. Hard Searches)

A hard credit check is a detailed review of your full credit report. Lenders use it to make lending decisions when you formally apply for credit.

When do hard checks happen?

• Applying for a mortgage

• Applying for a credit card or personal loan

• Financing a car or furniture

• Opening some utility or mobile contracts

Impact on your credit score:

Can lower your score (usually by a few points). If multiple hard checks happen in a short time, it may suggest financial instability and reduce your chances of approval.

Why does this matter for homebuyers?Too many hard searches especially from failed or rejected mortgage applications can damage your score temporarily just when you need it to be at its best.

Smart Strategy for First-Time Buyers

• Limit hard searches: Only apply for a mortgage when you’re confident about your eligibility (a broker can help with this).

• Use soft search tools first: These allow you to explore mortgage deals without harming your score.

• Avoid applying for other credit (like store cards or loans) in the 3–6 months leading up to your mortgage application.

Recap: Hard vs Soft Checks

Type of Check	Seen by Other Lenders	Affects Credit Score	Used For
Soft Search	No	No	Credit score checks, pre-approvals, quotes
Hard Search	Yes	Yes (slightly)	Formal applications for mortgages, loans, etc.

2. Track your score regularly with tools and apps

Checking your credit regularly is essential and won’t hurt your score. Free apps can give you alerts, tips, and updates as things change.

Recommended Free Tools:

• ClearScore  (Equifax data)

• Credit Karma (TransUnion data)

• MoneySuperMarket Credit Monitor (Experian data)

These apps help you:

• Spot errors or fraud

• Monitor your improvement

• Get tips on increasing your score

• Stay ahead of any sudden drops

Tip: Set a reminder to check your credit score monthly or quarterly particularly before applying for a mortgage, loan, or new credit.

3. What to do after you’ve bought your Home

Even once you’ve got the keys to your first home, maintaining good credit is just as important especially for future remortgaging or if your circumstances change.

• Keep making payments on time

This includes mortgage repayments, utility bills, and any leftover credit cards or loans.

• Avoid overextending yourself

Be mindful of taking on large new debts (e.g. furniture finance or a car loan) immediately after buying. Lenders may check your profile again if you refinance or switch providers later.

• Keep your credit score healthy for future goals

Whether it’s renovating, buying a second property, or switching to a better mortgage deal, a healthy credit score opens more options and better rates.

4. Protect your credit score during life changes

Sometimes, life takes unexpected turns. Job loss, health issues, or family changes can all affect your finances. Here’s how to protect your credit score during difficult periods:

Communicate early

If you’re struggling to make a payment, contact your lender or service provider right away. Many offer payment plans or short-term support.

**Prioritise Essential Payments

Make sure you continue to pay:

• Mortgage or rent

• Council tax

• Utility bills

• Minimum credit card payments

Even if money is tight, maintaining these protects your credit standing and avoids long-term consequences like defaults or CCJs.

Consider setting up a safety net

If you’re able to, building a small emergency fund of even £500–£1,000 can prevent missed payments in a crisis.

Maintaining your credit health isn’t just about getting approved for a mortgage, it’s about creating long-term financial stability and flexibility as a homeowner.

With the right habits, tools, and mindset, you can not only reach your goal of buying a home but continue to make confident financial decisions for years to come.

If you would like personalised support contact Home at Last, we specialise in supporting first-time buyers through every step of the process; from credit improvement to finding the right mortgage.

Book your free 30-minute consultation and get connected to a trusted mortgage broker.

If you missed Parts 1 or 2 use the link to have a read.

• Part 1: What credit scores are and how to improve them

• Part 2: What credit score you need and the role of brokers

Home at Last – helping first-time buyers feel confident, informed, and excited about homeownership.

Disclaimer: This blog post is for informational purposes only and should not be considered financial or legal advice.