How to boost your credit score and improve chances of getting a mortgage, according to Portsmouth-based expert

More people are looking into borrowing money to buy a property with inflation and house prices decreasing. Matt Marsh, founder and director of Hilsea-based mortgage brokerage, RBM Solutions, said it is important to stay on top of their finances, but loans can be utilised if used wisely.

NOW READ: Southsea's Clarence Pier Brewers Fayre Pub has officially reopened

He said: ‘Borrowing isn’t a dirty word, but there is a stigma around it. However, it can actually be a very useful – and free – way to boost your credit score and allow you to borrow more, assuming you pay each debt off on time.’ Mr Marsh added despite an initial dip by taking credit, your score will rise if your purchases are paid back.

He advised people to use credit cards for everyday spending which they can afford. This includes a weekly food shop or buying fuel, which can be paid off weekly.

The mortgage broker said getting a credit card or loan can be beneficial, but applying for too many can give a lender the impression that you’re desperate to borrow, even if you’re looking for the best deal.

SEE ALSO: New Southsea pub opens at former Kingsley's bar site with 'new lease of life' and six-figure investment

Mr Marsh specifically singled out ‘pay later’ companies – Klarna, Clearpay and Laybuy – as a way to tank your credit score, even with small payments. ‘Pay later schemes are good when you’re online shopping and going for a “try before you buy” option or are ordering multiple sizes or styles that you’re planning to return some of, but if you need to pay using Klarna, then you can’t afford it,’ he added.

‘Think about and remember your priorities. If that’s to buy a house or invest in your business, will a few hundred pounds on ASOS help with that, or will it get you further away from the goal?’ More information on how much you can borrow for a mortgage can be found here.