Electoral Roll registration versus mortgage application

Few people know that by signing up to the Electoral Roll you can increase your credit score. At first glance, these two things may seem completely unrelated, but the reality is different than you might think. Let’s find out why lenders look at the Electoral Roll and how much it can help.

What is the Electoral Roll?

The Electoral Roll (officially the Electoral Register) is the official list of people eligible to vote in UK elections. It contains details such as addresses and names of people who have registered to vote. It is maintained by local councils in England, Scotland and Wales, and by the Electoral Office for Northern Ireland if we are talking about Northern Ireland.

In England, Scotland and Wales, the register is updated every year as part of the annual canvass. Northern Ireland does not have an annual canvass: a full canvass is held every ten years (the next is due in 2030), and you can register or update your details at any time. During the Electoral Roll update process, Electoral Registration Officers (EROs) may contact households to ask them to confirm that their details are up to date. As a UK resident, you can also submit changes yourself - in which case the Electoral Register will be updated more quickly, as early as the monthly review. Communication with the office is mainly by post, but some matters can also be dealt with via the government website.

It is also worth knowing that the Electoral Roll is also used by law enforcement agencies and courts, to obtain reliable data on citizens’ addresses and identities. It is therefore a very important database, which is not insignificant in the context of mortgages.

Who can register to vote in the UK?

In England and Northern Ireland, you can register to vote from age 16 if you are a British, Irish or qualifying Commonwealth citizen, or an eligible EU citizen. In Scotland and Wales, you can register from age 14 if you are a British or Irish citizen or have permission to enter or stay in the UK (or do not need it). Registering early does not mean you can vote at that age. You can find the full rules on GOV.UK. The elections you can vote in depend on your nationality and status. British, Irish and qualifying Commonwealth citizens can vote in UK Parliament elections. Some other residents (for example eligible EU citizens, and in Scotland and Wales other foreign nationals with permission to stay) can vote only in local and devolved elections. However, the type of election you can vote in does not change the credit-check benefit - for credit checks, what matters is being registered at your current address.

You can be fined up to £1,000 if you do not give your Electoral Registration Officer the information they ask for (for example during the annual canvass in England, Scotland and Wales). In England, Scotland and Wales, you can also face a separate civil penalty if you are formally asked to apply to register and do not. It is worth taking a brief moment of your time to register to avoid the risk of getting into trouble for this reason.

Does registering for the Electoral Roll raise your credit score in the UK?

Yes, it can. Being registered at your current address helps lenders confirm your name and address, and it can improve your credit score with the credit reference agencies. How much it helps depends on the agency and on the rest of your credit file. When assessing creditworthiness and estimating risk, lenders check through the credit reference agencies whether you are registered on the Electoral Roll.

As we have already mentioned, the Electoral Roll is a tool used to verify identity by some state bodies. Presence on the Electoral Roll is also evidence of permanent residence and a long-term link to one address. It can also be argued that a person on the Electoral Register is more connected to the local community and therefore will not want to suddenly disappear and avoid paying their obligations, but in our opinion this is just a theory.

Whatever your reasons, signing up to the Electoral Roll is a simple step that can help your credit file, and it can improve your credit score. Banks like to lend money to people who behave sensibly and predictably, and a stronger credit file can help your mortgage application.

In our opinion, checking that you are registered on the Electoral Roll at your current address is one of the simplest ways to help improve your credit score. Take care of this before you start building up a repayment history (see how hire purchase can affect your credit score).

By how much will my credit score increase if I register for the Electoral Roll?

It is not possible to give an exact value by which your credit score will increase after registering for the Electoral Roll. In each case, the credit score increment can be different and it depends on the other criteria for assessing your situation.

The effect varies by credit reference agency, because each uses its own scoring scale, and it depends on the rest of your credit file. A stable address history can also help.

We probably don’t need to add that when applying for a mortgage you should check that your Electoral Register details are correct. If you are planning to move, be sure to let the office know quickly.

I can’t register for the Electoral Roll - what to do?

If you do not meet the conditions to register for the Electoral Roll or are otherwise unable to register, it is worth considering other methods to improve your credit score. We list some of these below.

Using a credit card responsibly

Using your credit card responsibly and correctly can have a positive impact on your credit score (see also whether hire purchase can improve your creditworthiness). For this to happen, you need to use the card regularly and pay off the full amount on time each month. Doing so can build a positive credit history, which directly affects your credit rating and credit score.

On the other hand, taking out consumer credit on a regular basis, including borrowing on a credit card, can lead you into a debt spiral. If you exceed the interest-free period, you will have to pay a very high interest rate.

You also need to be aware that borrowing money regularly may suggest that you tend to get into debt and live on credit. Your mortgage underwriter may have a lot of doubts if you use up your card limit every month.

Checking your credit report for errors

Checking your credit report regularly is key - you may find that your credit score is low simply because someone made a mistake about the payment status of one of your obligations. The most common errors we find on our clients’ reports are:

• Incorrect personal information - it can happen that a liability that does not belong to you is assigned to your credit report. This is not a very common occurrence, but it cannot be ruled out. It can also happen that certain events of a positive nature are not attributed to your name - if the banks cannot see that you have been paying your phone subscription regularly for several years, you are only losing out;

• Incorrect liability status - your credit report may show active loans, even if you have long since paid them off. There may also be indications that you have forgotten to pay an instalment or have done so late. These kinds of mistakes are obviously very bad for your credit score - lenders don’t like people who don’t pay their money back on time;

• Unauthorised credit enquiries - virtually all loan and credit enquiries will appear on your credit report. So-called soft credit checks are visible only to you, so they won’t lower your credit score. Hard searches are visible to lenders, and several in a short period may concern them. If you see a search you do not recognise, for example someone impersonating you and trying to take out a loan on your details, report it as soon as possible, as it could indicate fraud.

To find out how to check your credit report, take a look at our guide. You can check your credit report on the Checkmyfile website and, if necessary, we will also help you at your first meeting with a credit counsellor - this is when we deal with our clients’ credit scores.

Reduce your commitments

To improve your credit score, it is a good idea to close down your active financial commitments. If you are using a credit card and are unable to pay your obligations always on time, it is a better idea to get rid of it completely. This also applies to other loans that you do not repay on time. Missed payments and using a high share of your available credit can lower your score.

Of course, having a variety of financial obligations does not necessarily mean a lower credit score, but the key is to have a variety of them, a low debt-to-income ratio and to pay your obligations on time. In other cases, it is a good idea to limit your commitments as much as possible - if only to avoid forgetting a payment.

Ensure timely payment of electricity, water and gas bills

Energy bill payments can also affect your credit score where your supplier reports them to credit reference agencies. It is therefore important to remember to pay them on time so that they do not negatively affect your creditworthiness.

Other proof of residence

If you cannot confirm your residence through the Electoral Roll when applying for a mortgage, you can do so with other documents such as:

• Utility bills (except mobile phone);

• Bank statement including name and address;

• Lease agreement or mortgage document;

• Letter from the authority or tax document.

The Electoral Register statement should be regarded as additional evidence - the bank simply has a clearer picture of your financial situation.