To access the best mortgage deals it is important to have a good credit 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 many different things to do to boost the rating, also making certain that your expense is paid off timely and you may cutting your expenses.
Read our ultimate guide to improve your credit score for the full lowdown. We’ve also put together a 12-few days plan to a better credit score, which breaks it down into easy-to-follow steps.
5. Check in so you can choose
Before you make a mortgage application, make sure you are on the electoral sign in as this can improve your credit score by around fifty 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 your bill repayments
Another essential action you can take to increase your credit rating and you will likelihood of getting the application accepted should be to keep the 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 issues from your credit score. But if you have a good credit score and a solid history of my sources 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 minimal percentage, so that your credit file isn’t affected. Consider setting up a direct debit so you never miss a payment.
For individuals who look at your credit history and acquire that it is perhaps not direct, you will need to get in touch with the financial institution to have it upgraded. If not, wrong information could effect your credit score along with your capability to get a home loan.
Make sure details such as your term and you can address was appearing truthfully, and you can conflict people problems (eg credit online searches, situations otherwise economic contacts) you do not acknowledge. Be aware that it takes weeks getting problems become up-to-date, according to the lender as well as the borrowing from the bank source agency, therefore the at some point you appear with the which the higher.
8. Cure one old economic ties
If you’ve ever got a shared economic tool with someone else, this may let you know on the credit file. It will not apply at your credit score however it could affect exactly how lenders see you. And if you are of this someone who has a woeful credit records, it might be far better eradicate links using them regarding your own report which doesn’t echo poorly on you.
To begin with, make sure the joint account could have been closed. Following get in touch with the relevant borrowing from the bank site firms to consult an effective notice away from disassociation’ to eradicate one links from the credit report.
nine. Improve your put
The higher your deposit, the lower the amount you’ll need to borrow from the bank. This is known as your loan to help you really 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.