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UK Credit Education Day

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Chris England

Author: Chris England - As Online Mortgage Advisor’s head of operations, Chris spends most of his time liaising with our extensive network of mortgage brokers and making sure customers are matched with the right mortgage advisor as quickly and smoothly as possible.

Updated: July 12, 2021

UK Credit Education Day

If you want to avoid the highest mortgage interest rates when you have the funds to buy your own home, it’s vital you stop overspending and keep your credit file squeaky clean now, so you’re in the best position possible by the time you have your deposit saved. Whether you’re a college or university student, an apprentice, or are only in the early throes of your career, your income probably doesn’t cover much more than just your bills.

Difference Between Best & Worst Rate Mortgages

Mortgage Credit Building Tips

Don’t completely avoid credit

Although credit does get a bad rap, it shouldn’t be frowned upon. Without obtaining some credit, you won’t have a credit file on which mortgage lenders can make a decision to lend to you. It’s a good idea to sign up for a credit card, even if it has a small limit and you pay it off every month.

Avoid payday loans

There’s quite a bit of controversy about whether using payday loans will impact your credit file. Although some credit referencing agencies say they don’t count against getting a mortgage, the majority of lenders will not lend if you have regular payday loans on your account. Although there are some lenders that will let you borrow if you have used payday loans in the past, you’re likely to find less favourable conditions, such as being able to borrow less than you originally asked for.

Be sensible

Only borrow what you can afford to pay back and try and keep the money you owe to short-term (a few years at most). When a mortgage lender looks at your expenditure, outgoings on loans and credit cards may be deducted from your salary, so having a large loan you’re paying a substantial amount for every month over a long period will mean you will be able to borrow less.

Be reserved when applying for credit

Every time a credit lender searches your credit file, a mark will be put on it saying you’re seeking credit. Although it’s good to shop around for the best rates and conditions on credit, a good broker will be able to suggest where you’re more likely to be accepted for a loan (whether a mortgage, loan, credit card or other type), without searching your credit file.

If you’re having problems spending beyond your means, it’s time to take a look at cutting back. Here are our top tips for saving for a house deposit while studying rather than spending.

Have no-spend days every week

Try and set aside one day a week where you don’t spend anything at all. Leave your purse or wallet at home and avoid borrowing off your mates. It really is achievable if you have food in the cupboard, and will make you seriously consider what you’re wasting money on.

Use cash rather than card

At the beginning of every week, take a set amount of cash out (for example, £50) and hide your cards away. This way you can keep tabs on exactly how much you’re spending and can cut back where needed.

Find a job

You may think you’ll struggle working as well as studying, but even just a few hours a week could make the difference between getting into debt and staying out of it. Student towns are rife for part time jobs, and you could pick up some experience too. If you don’t want to stick to the normal bar or retail jobs, ask around other local firms (perhaps even in the sector you want to work in) and see if they need any help.

Limit your nights out

Although the temptation to go out every night may be huge, it can also drain your funds fast. Limit your nights out to once or twice a week and swap high pub prices for drinking at home instead. Invite your mates round for your own party and buy booze between you to split the cost.

Seek advice if you feel there’s no way out

We’ll be honest. Sometimes, things will get a little out of hand and you may already be in a position where you don’t think you can go on without opting in for credit that can affect your credit file in the long-term. If you get to this point, it’s vital you seek advice, whether from your university, your bank, from the Citizens Advice Bureau or one of the many charities that can help you find a way out. Making a rash decision now can seriously impact your future, so take the time out and discuss your problems with people who understand and can give you independent advice.

What Salary Will I Be On?

No idea what you’ll earn when you finish university? Take a look at our handy table below to see what you’re likely to earn in some of the top graduate jobs in the UK.

Subject Professional Salary Non-professional Salary
Accounting & Finance £23,180 £17,806
Aeronautical & Manufacturing Engineering £25,588 £16,239
Agriculture & Forestry £20,696 £17,071
American Studies £20,618 £15,689
Anatomy & Physiology £21,988 £15,550
Anthropology £20,395 £16,268
Archaeology £20,000 £15,017
Architecture £19,864 £16,149
Art & Design £19,669 £15,756
Aural & Oral Sciences £23,658 £15,127
Biological Sciences £20,624 £15,772
Building £26,286 £20,123
Business & Management Studies £23,952 £17,629
Celtic Studies £19,793 £13,661
Chemical Engineering £28,603 £17,187
Chemistry £22,817 £15,547
Civil Engineering £25,550 £19,067
Classics & Ancient History £22,460 £15,514
Communication & Media Studies £19,258 £15,630
Complementary Medicine £28,259 --
Computer Science £25,203 £16,315
Creative Writing £18,133 £14,866
Dentistry £30,432 ---
Drama, Dance & Cinematics £19,659 £15,429
East & South Asian Studies £23,723 £17,112
Economics £28,157 £18,132
Education £21,896 £15,414
Electrical & Electronic Engineering £26,146 £17,253
English £20,065 £15,822
Food Science £22,249 £15,500
Forensic Science £18,825 £15,968
French £22,171 £16,517
General Engineering £27,157 £16,585
Geography & Environmental Science £22,001 £18,033
Geology £24,818 £15,839
German £22,416 £17,407
History £21,621 £16,765
History of Art, Architecture & Design £20,349 £16,175
Hospitality, Leisure, Recreation & Tourism £20,130 £16,966
Iberian Languages £22,161 £16,507
Italian £21,731 £17,840
Land & Property Management £24,505 ---
Law £20,421 £16,939
Librarianship & Information Management £24,576 £16,820
Linguistics £20,261 £15,992
Marketing £21,565 £17,164
Materials Technology £22,468 £16,757
Mathematics £25,840 £17,108
Mechanical Engineering £26,361 £18,608
Medical Technology £22,652 £16,616
Medicine £28,191 ---
Middle Eastern & African Studies £22,412 £17,378
Music £19,956 £15,580
Nursing £22,840 £18,221
Occupational Therapy £22,407 £14,961
Optometry, Ophthalmology & Orthoptics £16,286 --
Pharmacology & Pharmacy £19,746 £17,105
Philosophy £24,377 £16,142
Physics & Astronomy £25,047 £15,847
Physiotherapy £22,331 £13,929
Politics £23,603 £19,911
Psychology £19,927 £15,746
Russian & East European Languages £23,973 £18,043
Social Policy £20,555 £15,797
Social Work £24,761 £15,365
Sociology £20,518 £15,956
Sports Science £19,888 £16,032
Theology & Religious Studies £21,824 £15,180
Town & Country Planning and Landscape Design £22,775 £17,491
Veterinary Medicine £26,872 ---
Averages £22,984 £16,786


HESA 2014-15 – Published October 2016


FCA disclaimer

*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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