The Bank of England recently announced it is holding the base interest rate at 4%, citing concerns about inflation, which remains stubbornly high at around 3.8%. For borrowers, this news brings both relief and uncertainty. Relief that rates aren’t climbing higher, but uncertainty as many lenders continue to increase their mortgage offer rates despite the hold.
So what does this mean for you — and more importantly, for your credit score and credit file?
What's Included?
Why mortgage deals are still tightening
Even though the base rate hasn’t moved, lenders are pricing in future risks. Inflation, global uncertainty, and rising borrowing costs mean banks and building societies are adjusting their affordability checks. This makes a strong credit profile more important than ever.
If you’re coming to the end of a fixed deal or hoping to buy in 2025, your credit score could make the difference between being approved for a competitive rate or paying thousands more over the life of your mortgage.
Why your credit score matters more than ever
Your credit file is one of the first things lenders look at when deciding:
- Whether to approve your application
- What rate to offer you
- How much you can borrow
Small issues can have a big impact. Missing from the electoral roll, a forgotten mobile bill, or outdated information could drag down your score and make lenders nervous.
Practical steps you can take now
Here’s a quick checklist to get your credit file mortgage-ready:
- ✅ Register on the electoral roll – Being listed at your current address builds trust with lenders.
- ✅ Check for errors – Make sure your file doesn’t show old debts or incorrect personal details.
- ✅ Keep up with payments – Even a single late payment can dent your score.
- ✅ Avoid multiple applications – Too many credit checks in a short time can look risky.
- ✅ Use tools like open banking – Some lenders reward visibility into your finances with better rates.
Affordability may ease in 2025 — if you’re ready
Experts suggest that as the economy stabilises in 2025, affordability rules could ease slightly, opening up opportunities for borrowers. But those opportunities will go first to people with strong, well-maintained credit files.
That’s why now is the time to prepare.
Take action today
At Credit-Score.co.uk, you can:
- Download our free app
- View your full credit report and score
- Use the personalised To-Do list to spot and fix issues
- Track your progress with credit alerts
The sooner you act, the better prepared you’ll be when the right mortgage deal comes along.
👉 Check your credit score for free today and put yourself in the strongest position for 2025.
