To access the best mortgage deals it is important to have a a good credit score rating. 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 numerous things to do to increase their get, plus ensuring that your entire bills is actually paid promptly and lowering your bills.
Read our ultimate guide to replace your credit rating for the full lowdown. We’ve also put together a 12-day bundle to a better credit score, which breaks it down into easy-to-follow steps.
5. Check in to vote
Before you make a mortgage application, make sure you are on the electoral register as this can improve your credit score by around fifty issues. 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.
six. Keep the statement money
Another essential action you can take to increase your credit rating and you will likelihood of having your application acknowledged is to try to keep your statement money.
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 facts 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 people who check your credit history and get that it is perhaps not right, attempt to contact the lender to get it upgraded. If you don’t, incorrect advice you certainly will effect your credit rating plus capacity to score a mortgage.
Ensure that info such as your name and you may target is demonstrating truthfully, and you can dispute one problems (including borrowing from the bank looks, issues or monetary relationships) you never recognise. Bear in mind that it will require many weeks to own problems become up-to-date, according to the financial as well as the borrowing from the bank reference agency, and so the eventually you look toward that it the better.
8. Treat one old economic connections
If you have ever got a mutual financial tool with another individual, this will reveal on the credit file. It’s not going to affect your credit score but it make a difference to how lenders see you. And if you’re associated with somebody who has a dismal credit history, it might be best to lose links with these people out-of your statement this does not reflect poorly you.
First of all, make sure the joint membership might have been finalized. Following get in touch with the relevant borrowing from the bank site companies to help you demand a great see off disassociation’ to eliminate one connections out of your credit file.
nine. Enhance your deposit
The higher your deposit, the lower the amount you’ll need to borrow from the bank. This is known as your mortgage in order to 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 payday loan Aliceville 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.