In this exclusive, Experian’s Head of Consumer Affairs, John Webb, explores the current housing landscape and highlights the practical steps advisers can encourage clients to take to strengthen their mortgage readiness.
In the first half of 2026, the UK housing market has seen something of a bumpy ride. Increasing rates – MoneyBox data shows the average two-year fixed mortgage rate has climbed to 5.75% – means it has been a stressful time for aspiring homeowners, many of whom are looking to navigate the journey to home ownership for the first time.
As a result, the role of financial advisors is becoming even more important as clients look to industry experts to provide practical advice on how to best move forward and secure the best rate possible.
Let’s take a closer look at how the current market is shaping up and how financial advisors can best guide their clients.
The Current Market
The landscape has shifted slightly from a buyers’ market to a more risk-averse environment. We are seeing the most competitive sub-4% interest rates becoming harder to find, and even small rate increases can significantly impact borrowing capacity and monthly affordability. This is especially true for first-time buyers, who may find it harder to overcome the deposit barrier in a market where lenders are tightening their criteria.
In this climate, becoming a “strong applicant” may feel especially tough and will require a little more strategic financial planning. To secure the best deal, it is key that potential buyers do everything possible to put themselves in the soundest financial position and focus on small, achievable actions that can make a positive impact. An important part of this is understanding and actively managing their credit score.
A “Mortgage Ready” Action Plan
Lenders rely heavily on credit report data to assess someone’s creditworthiness – their track record of managing credit in the past. Credit reports are a prediction tool, using past financial behaviour to determine your level of risk.
However, the mechanics of boosting a score aren’t always well understood by the public, so there’s a vital role for brokers to play in demystifying the process for their clients.
Whilst lenders will look at other information when someone applies for a mortgage (affordability and existing records) – credit report data still plays a significant role in determining access to credit, the rates and the limits.
If you start the process early enough, there are things someone can do to shape their credit score, to get in the best possible position for an application.
This could include:
Encouraging customers to check their credit reports early: You can’t fix what you can’t see, and it can be a tough time for clients if they think they are on top of their finances only to check their credit report and be faced with unexpected issues. By encouraging regular check-ins, this can give people time to build a better score, or find ways to improve. Ideally, you’ll want clients to check their free credit report from all three agencies (Experian, Equifax, TransUnion) at least 12 months before they apply.
Monitor progress with credit scores: Lenders don’t see the score we give consumers. In fact, they score on a slightly different scale which can score people out of a larger range. The Experian score recently moved from 999 to 1250 to incorporate new data that lenders are using, bringing it closer to the actual score they would use. This means it’s the most accurate score ever.
The impact of debt: Existing unsecured debt can change the amount of money banks are willing to lend potential buyers – even if they have a high deposit to offer. Lenders will analyse debt-to-income ratios, and while a large deposit can be a positive factor, it may not be enough to offset the risk of high existing debts.
For example, if a client has got high credit card debt and utilisation (the % of limit in use), this could significantly reduce their credit score, whilst also reducing the amount a lender will give them. It’s important to understand if/when debt should be repaid at the cost of a larger deposit, for example.
Applying with negative information: Credit report data generally stays for six years, which could mean clients have negative records still showing on their credit reports. For example, default accounts, court judgments, insolvencies or significant missed payments. Having any of these could cause a significant barrier to getting a mortgage or a good rate, as they could be knocking hundreds of points of the score.
If that’s the case, we need to take a look at when they will drop off. It may be better to wait a few months if it’s almost been six years. Otherwise, if there’s a genuine reason for a negative record. then add a statement to the report to explain (called a notice of correction).
Keep your report consistent: Differences in addresses or not being registered on the electoral roll can cause application hiccups. Make sure clients go through their credit report with a fine-tooth comb, checking all address match and accounts are registered at the same address. Being registered on the electoral roll with help the ID check when they apply, as well as adding points to their credit score.
Check for financial links: Whether through past relationships or joint family accounts, we often see financial links (associations) on credit reports that may have been forgotten. This is because links stay until you tell all credit reference agencies that they should be removed – a process known as a financial disassociation.
When someone applies for credit, a lender could check the other person’s credit information if they’re linked. If their history isn’t great, it could impact what a lender is prepared to offer, possibly resulting in higher rates or even refusal in extreme cases.
Buying a home remains one of the most stressful times of our lives and increasing shifts in the market can make it feel impossible to keep up. But with the right support and guidance, buyers can actively make adjustments to their own financial habits to ensure that they can secure a deal that works for them.
