Credit Scores and Remortgaging

6th Jun 2025

Remortgaging lets homeowners switch their current home loan to a new deal, either with the same lender or a different one. While many people remortgage when their current deal ends, there are other reasons why some might consider it, including:

• Getting a lower interest rate
• Fixing monthly mortgage payments to protect you against future potential rate rises
• Raising funds for home improvements

Whatever your reason for remortgaging, lenders will assess your application just like they would for a new mortgage, which means your credit score needs to be as healthy as it can be.

How Your Credit Score Impacts Remortgaging

When lenders look at your credit score, they are trying to calculate the risk of lending to you. A high credit score usually means you are offered better deals as the bank is pretty sure you’ll pay them back. However, even if your credit score isn’t brilliant, a low score doesn’t necessarily mean you’ll be turned down for a remortgage. Most lenders will also look at your credit history over the past 18 months, so you still have time to improve your chances by boosting your credit score.

Improve Your Credit Score Before Applying for a Remortgage

Here are some steps you can take to improve your credit score before applying for any sort of credit, not just a remortgage:

• Register to vote: Being on the electoral register is the best way to confirm your identity and address. If you haven’t signed up yet, you can do so on the government website.
• Check your credit history: The UK’s 3 main credit agencies - Experian, Equifax, and TransUnion – collect information to calculate your credit score. If you find any mistakes on your file, ask them to put it right.
• Keep your credit use low: Using a large portion of your available credit might signal to lenders that you rely heavily on credit. Aim to use no more than 10-30% of your credit limit to show responsible credit management.
• Limit your credit applications: Multiple credit checks in a short period can hurt your score, so use eligibility checkers where you can.
• Reduce your debt: The less debt you have, the more likely lenders are to approve your application.

Managing Credit Issues During Remortgaging

Improving your credit score takes time, but if you’re looking to remortgage soon, there are several things you can do which might make you a better risk and more attractive client. These include:

• Enlist a guarantor: If someone with a stronger financial profile is happy to act as a guarantor, it may help strengthen your remortgage application.
• Consult a mortgage broker: A professional can guide you through the process and help recommend the best products given your individual situation.

Improving your credit score should be seen as a long term project rather than as a quick fix. However, if you start keeping track of your finances and making sure you never miss payments, try to minimise debt and fix all the mistakes on your file, you should see a definite improvement within six months.