UK, 10 August 2021: The stamp duty holiday helped drive higher engagement with credit scores, according to Experian.
Mortgage applications were 31% higher during the stamp duty holiday than the equivalent period between 2019 and 2020, and those consumers who took out a new mortgage were more likely to check their credit score.
Credit score engagement peaked in July 2020, when the stamp duty holiday first came into effect, and retained heightened levels consistently through the remainder of 2020 and the first half of 2021.
The findings are supported by Experian’s research, which found that the large majority of Brits now understand that credit history is important for securing a mortgage (81%), and almost three-quarters (74%) know it’s important to check their credit score before looking for a home.
Sebastian Worbs, Product MD at Experian Consumer Services said: “It’s good to see more people taking an interest in their credit score. Our research shows that most consumers now understand the importance of managing their credit score when buying a home, and the recent increase in mortgage seekers checking their credit score during the stamp duty holiday with us confirms it.
“Having a good credit score can be really important for your mortgage application, as people with higher scores tend to get the cheapest mortgage rates. The first step is to know what your score is, and you can check that for free at Experian.”
Google search trends also highlight the close relationship between interest in credit scores and mortgage demand. Searches for terms related to credit monitoring and mortgages reached their highest search levels in two years in early March 2021, as people looked to complete new purchases ahead of the initial stamp duty holiday deadline.