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 things you can do to increase their score, together with making sure all your expense are paid punctually and you may reducing your bills.
Read our ultimate guide to improve your credit rating for the full lowdown. We’ve also put together a 12-week plan to a better credit score, which breaks it down into easy-to-follow steps.
5. Check in to 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 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.
six. Keep expenses costs
Another significant action you can take to increase your credit score and probability of getting the app recognized would be to keep the expenses repayments.
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 circumstances 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 payment, so that your credit file isn’t cash advance Arley Arley, AL affected. Consider setting up a direct debit so you never miss a payment.
For folks who look at your credit file and acquire that it’s maybe not direct, attempt to contact the financial institution to get it up-to-date. If not, incorrect information you can expect to impact your credit score plus power to rating a home loan.
Make sure facts such as your identity and target is exhibiting truthfully, and you may disagreement people problems (including borrowing looks, factors otherwise monetary connections) you don’t recognise. Keep in mind required a few weeks having mistakes to-be upgraded, according to the financial and credit reference service, so the sooner you appear for the which the better.
8. Remove people old economic ties
If you have ever had a shared financial unit having another individual, this may let you know on your credit file. It’s not going to connect with your credit rating but it can affect how lenders view you. And if you are regarding the somebody who has a woeful credit history, it will be better to reduce ties with these people regarding your own statement it cannot reflect poorly you.
To start with, ensure that the joint membership has been signed. Then contact the appropriate borrowing resource agencies so you can request good find from disassociation’ to remove one ties from your credit history.
9. Improve your 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 security with a large deposit behind you.
