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 investigate the site improve.
There are various activities to do to boost your own rating, also making certain all bills is paid timely and you can lowering your debts.
Read our ultimate guide to alter your credit score 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. Register to help you 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 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 eligible.
6. Keep your bill costs
Another important thing you can do to improve your credit rating and you will possibility of getting the application accepted is always to keep your bill payments.
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 factors 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 minimal payment, so that your credit file isn’t affected. Consider setting up a direct debit so you never miss a payment.
For folks who check your credit file and acquire that it’s maybe not particular, you will need to get in touch with the lending company to get it upgraded. Or even, wrong recommendations you may feeling your credit score plus capability to rating a home loan.
Ensure that info just like your label and you may target was appearing precisely, and you can conflict one mistakes (such borrowing searches, points or monetary associations) you do not understand. Keep in mind it takes several weeks getting problems to get upgraded, depending on the lender as well as the credit site agencies, so the ultimately you look for the which the higher.
8. Eliminate one dated economic ties
If you have ever got a mutual financial unit which have someone else, this can let you know in your credit report. It’s not going to affect your credit rating however it may affect how lenders view you. And if you are from the anyone who has a dismal credit background, it could be best to lose links with these people out-of the report so it does not reflect poorly for you.
To begin with, make sure the joint account has been closed. Then contact the appropriate borrowing from the bank reference organizations so you’re able to request good ‘see of disassociation’ to get rid of people connections out of your credit history.
9. Boost 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 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 security with a large deposit behind you.