To access the best mortgage deals it is important to have a a good credit score get. You can check your credit score for free with one of the main three credit reference agencies in the UK: Experian, Equifax and TransUnion. You can use your report to identify areas that you need to improve.
There are various actions you can take to improve your own rating, and additionally making certain that all of your bills is actually paid off on time and you can lowering your bills.
Read our ultimate guide to improve your credit rating for the full lowdown. We’ve also put together a 12-times plan to a better credit score, which breaks it down into easy-to-follow steps.
5. Check in to choose
Before you make a mortgage application, make sure you are on the electoral check in as this can improve your credit score by around 50 products. It also allows lenders to check that you are who you say you are and make sure the details on your application are accurate.
If you are not registered to vote, you can sign up online. It only takes about five minutes and you’ll need your National Insurance number to hand. Check the Government’s website to see if you are eligible.
6. Keep costs payments
Another important action you can take to improve your credit score and likelihood of having your software accepted is always to maintain your expenses costs.
Lenders will check your credit report to see how you’ve managed your finances in the past and use this data to predict your future behaviour. Missing just one payment can knock off around 130 things from your credit score. But if you have a good credit score and a solid history of repaying your bills on time, this will work in your favour.
Ideally, you want to pay your credit card balance off in full each month to avoid all interest and charges. But if this is not possible, you need to pay at least the lowest commission, so that your credit file isn’t affected. Consider setting up a direct debit so you never miss a payment.
For individuals who check your credit file and get that it’s not direct, you will need to get in touch with click for more the lending company to get it upgraded. If you don’t, wrong suggestions you will effect your credit score and your capability to rating home financing.
Guarantee that details like your identity and address are exhibiting correctly, and you will disagreement any problems (for example borrowing from the bank searches, facts or economic relationships) that you do not acknowledge. Keep in mind it will require several weeks to have errors is upgraded, according to financial and credit site service, and so the at some point you appear for the which the higher.
8. Dump people old monetary ties
If you’ve ever had a joint economic tool having someone else, this may tell you in your credit report. It will not connect with your credit rating nonetheless it may affect how loan providers see you. So if you’re for the somebody who has a woeful credit history, it will be better to remove links together with them out-of the statement which cannot mirror defectively you.
Firstly, make sure the joint account has been closed. Next get in touch with the appropriate borrowing resource businesses so you’re able to consult a good notice of disassociation’ to eliminate people connections from your own credit file.
nine. Increase your put
The higher your deposit, the lower the amount you’ll need to borrow from the bank. This is known as your financing so you can well worth‘ (or LTV). Saving a large deposit can boost your chances of getting your mortgage application accepted because the bank is likely to feel more comfortable if you can put a lot of money down upfront (usually over 10% of the value). If the house value was to drop, you would be less likely to go into negative equity with a large deposit behind you.