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 steps you can take to increase your own rating, plus ensuring that all of your current debts is actually repaid promptly and you can reducing your expense.
Read our ultimate guide to improve your credit score for the full lowdown. We’ve also put together a 12-month package to a better credit score, which breaks it down into easy-to-follow steps.
5. Sign in to help you choose
Before you make a mortgage application, make sure you are on the electoral register as this can improve your credit score by around fifty situations. 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.
six. Maintain your bill costs
Another essential thing you can do to improve your credit score and you will probability of getting the software accepted is to keep the statement 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 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 lowest fee, so that your credit file isn’t affected. Consider setting up a direct debit so you never miss a payment.
For those who look at the credit history and acquire it is perhaps not exact, attempt to contact the lending company to get it updated. Otherwise, wrong recommendations you are going to impact your credit rating plus capacity to get home financing.
Make certain information such as your title and you will https://elitecashadvance.com/personal-loans-il/ target are indicating correctly, and you can conflict one errors (for example borrowing from the bank online searches, issues otherwise economic connections) you don’t understand. Bear in mind that required several weeks to have mistakes to be upgraded, with regards to the financial in addition to credit reference institution, so that the sooner you appear for the it the greater.
8. Lose one dated monetary connections
If you have ever had a shared monetary tool that have someone, this can inform you on your credit history. It’s not going to apply at your credit score however it make a difference to exactly how lenders see you. So if you’re on the someone who has a poor credit record, it would be best to reduce ties using them out-of the report this will not reflect poorly you.
First of all, ensure that the combined membership might have been finalized. Up coming get in touch with the appropriate borrowing source enterprises so you’re able to demand a good find from disassociation’ to remove people links from your own credit history.
9. 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 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.