To access the best mortgage deals it is important to have a good credit 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 many activities to do to boost their score, including making certain that any debts was repaid promptly and you may cutting your costs.
Read our ultimate guide to improve your credit score for the full lowdown. We’ve also put together a 12-month plan to a better credit score, which breaks it down into easy-to-follow steps.
5. Check in to help you vote
Before you make a mortgage application, make sure you are on the electoral check in as this can improve your credit score by around fifty facts. 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 bill repayments
Another important action you can take to boost your credit rating and you may odds of payday loans Bridgeport Alabama having your app recognized is to keep your costs 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 affairs 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 fee, so that your credit file isn’t affected. Consider setting up a direct debit so you never miss a payment.
If you look at the credit report and acquire it is perhaps not particular, you will need to contact the lending company to get it current. Or even, incorrect pointers you are going to impact your credit score plus capability to rating home financing.
Ensure that details just like your title and you can target try indicating correctly, and you may disagreement one errors (such as for example credit online searches, circumstances otherwise financial connections) that you don’t recognise. Bear in mind that it can take many weeks having errors is updated, with respect to the financial in addition to borrowing site institution, so the sooner or later you appear on the that it the greater.
8. Eradicate people dated monetary ties
If you’ve ever had a joint economic equipment that have another person, this will show on your credit file. It’s not going to affect your credit score however it make a difference to just how lenders view you. And if you are of the somebody who has a dismal credit background, it will be best to eradicate ties together with them of your report that it doesn’t echo poorly you.
Firstly, ensure that the mutual account has been finalized. Upcoming contact the appropriate credit source providers to help you consult good observe off disassociation’ to eliminate any ties from your own credit report.
9. Improve put
The higher your deposit, the lower the amount you’ll need to borrow from the bank. This is known as your mortgage to help you 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 equity with a large deposit behind you.