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 improve.
There are numerous actions you can take to boost your rating, as well as making sure all of your current debts are paid down punctually and you will lowering your bills.
Read our ultimate guide to alter your credit history for the full lowdown. We’ve also put together a 12-few days package to a better credit score, which breaks it down into easy-to-follow steps.
5. Register to help you 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 affairs. 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.
6. Maintain your costs repayments
Another important thing you can do to improve your credit rating and you may possibility of getting the application approved is to keep your bill 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 activities 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 commission, 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 history and acquire it is not appropriate, you will need to contact the lender to have it current. Or even, incorrect pointers could feeling your credit rating along with your power to score a home loan.
Make certain details such as your label and you may target are appearing truthfully, and you may dispute people mistakes (such as borrowing looks, activities otherwise economic associations) that you do not acknowledge. Bear in mind that it will take weeks to have errors getting upgraded, with regards to the bank plus the borrowing from the bank source agencies, therefore the sooner you look with the this the higher.
8. Beat one old economic connections
If you have ever got a combined monetary device having someone, this may inform you on your own credit file. It won’t apply to your credit score nonetheless it could affect just how lenders view you. And if you’re in the anyone who has a dismal credit records, it will be far better eradicate connections together with them out-of your statement this cannot reflect badly payday loans no credit check Billingsley for you.
First of all, ensure that the shared membership might have been signed. Then contact the relevant borrowing resource firms to help you demand a beneficial see regarding disassociation’ to remove one links from your own credit report.
9. Enhance your put
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 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 guarantee with a large deposit behind you.