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 various things to do to improve your get, together with ensuring that all of your current bills is actually paid back punctually and you will lowering your expenses.
Read our ultimate guide to alter your credit rating for the full lowdown. We’ve also put together a 12-day plan to a better credit score, which breaks it down into easy-to-follow steps.
5. Sign in to help you vote
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 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. Maintain your costs repayments
Another significant action you can take to improve your credit rating and you may chances of having your software recognized is to try to keep the expenses 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 issues 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 many who look at the credit report and find that it is perhaps not particular, make an effort to get in touch with the financial institution to have it up-to-date. If you don’t, wrong pointers you can expect to impression your credit score as well as your capability to score a home loan.
Make certain info just like your identity and you will target are appearing accurately, and argument any errors (such as for instance borrowing searches, factors or economic connections) that you don’t understand. Keep in mind it requires several weeks to have problems to get up-to-date, according to the financial together with borrowing from the payday loans South Dakota bank resource agencies, therefore the fundamentally you look for the which the higher.
8. Treat any old monetary connections
If you’ve ever had a shared financial device having another person, this can reveal on your credit file. It will not connect with your credit score it may affect exactly how lenders see you. And if you’re from the someone who has a woeful credit record, it might be best to eliminate links using them away from your report so it will not mirror defectively you.
First, ensure that the mutual account has been closed. Upcoming get in touch with the relevant borrowing from the bank source enterprises in order to consult a great find out of disassociation’ to eradicate one ties out of your credit file.
9. Improve deposit
The higher your deposit, the lower the amount you’ll need to borrow from the bank. This is known as your mortgage to 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.