To access the best mortgage deals it is important to have a good credit score. 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 many actions you can take to boost their score, including ensuring that your entire expense was paid down promptly and you can reducing your expense.
Read our ultimate guide to change your credit history for the full lowdown. We’ve also put together a 12-times package to a better credit score, which breaks it down into easy-to-follow steps.
5. Register in order to choose
Before you make a mortgage application, make sure you are on the electoral register as this can improve your credit score by around 50 points. 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 qualified.
6. Keep bill payments
Another essential action you can take to improve your credit rating and you can likelihood of having your app acknowledged should be to maintain your statement 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 activities 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 minimum payment, 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 find it is maybe not appropriate, you will need to get in touch with the financial institution to have it updated. Otherwise, wrong suggestions you are going to impression your credit rating as well as your capability to get a mortgage.
Make sure info just like your name and you can address is indicating truthfully, and argument any mistakes (for example borrowing from the bank hunt, things or monetary associations) you do not recognise. Be aware that it requires few weeks to own errors as upgraded, depending on the lender therefore the borrowing from the bank resource agencies, therefore, the eventually you appear on it the greater.
8. Dump one dated economic ties
If you have ever had a combined economic unit having someone else, this installment loans Early no credit check will reveal on the credit history. It will not connect with your credit score but it may affect exactly how loan providers see you. And if you are regarding the someone who has a dismal credit records, it might be best to treat connections with them off your statement this doesn’t mirror poorly you.
First, make sure the combined membership has been closed. Next contact the appropriate borrowing reference companies in order to consult a great ‘find away from disassociation’ to remove people links out of your credit report.
9. Enhance your put
The higher your deposit, the lower the amount you’ll need to borrow from the bank. This is known as your ‘loan 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 collateral with a large deposit behind you.