2) Payment history matters most
Consistently paying bills on time is one of the strongest signals you can send to lenders. Missed or late payments, even on smaller commitments such as mobile contracts, can have a disproportionate impact. If you have any payments that regularly catch you out, setting up direct debits and reminders can reduce the risk of accidental oversights.
3) Keep credit card balances sensible
How much of your available credit you use can matter as much as whether you repay it. High utilisation can signal financial strain, even if you always pay on time. Where possible, reducing balances and avoiding maxed-out limits can support your overall profile.
4) Avoid sudden changes before applying
In the run-up to a mortgage application, stability is important. Taking out new credit, switching bank accounts frequently, or making multiple applications within a short period can raise red flags. If your deal is ending soon, it is often wise to avoid unnecessary new finance and keep your financial footprint steady.
5) Be cautious about closing older accounts
Closing unused credit accounts can reduce your available credit and change your profile. It is not always a problem, but it is not always helpful either. If you are unsure, it may be better to pause before making changes, especially close to an application.
6) Make sure you are on the electoral register
This can help with identity checks and can support your credit profile, particularly if you have moved recently.
HOW LONG DO IMPROVEMENTS TAKE? Some changes can help quickly, while others take longer.
• Correcting errors or reducing balances may help within weeks. • Rebuilding after missed payments typically takes longer, and consistency matters.
Even modest improvements can make the process smoother and may widen the choice of lenders and products available.
DO NOT FORGET PROTECTION AS YOUR DEAL ENDS
When people review their mortgage, it is also a sensible time to review the safety net around it. If your income stopped due to illness or an accident, or if the worst happened, would the mortgage and household bills still be manageable?
Many people set up life insurance and income protection years ago and then never look at it again. But circumstances change: your mortgage balance reduces, your family situation changes, your income changes, and cover that once felt right can become out of date. A quick review can help you check whether your cover still matches your needs and budget, and whether you are protected in the way you expect.
LOOK BEYOND THE HEADLINE RATE
It is tempting to fixate on the rate, but the overall cost matters more. When comparing deals, keep an eye on: • Product fees and valuation fees • Incentives and cashback offers • Early repayment charges • Flexibility, overpayment options and portability • Whether the term still suits your plans
A slightly higher rate with lower fees can be better value for some borrowers, particularly on smaller balances or shorter fixes. Equally, a low rate can look attractive until fees are added back in.
43 THE PRACTICAL TAKEAWAY
If your mortgage deal ends this year, treat it like a diary date rather than a surprise. Start early, gather the basics, and keep your credit profile steady and well managed in the months leading up to any application.
Always speak to an independent financial adviser/mortgage broker who will look at all the options available for you.
For further information please contact Peter Hunt on: 0121 503 0961
www.moneywatchfinance.com
Peter is one of the panel experts for the Grand Designs live TV show and has been recognised in the Times Vouched For guide to the UK’s top rated financial advisers every year since 2019
LIVE24-SEVEN.COM
THE MIDLANDS PROPERT Y GUIDE MONEYWATCH FINANCE
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