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 various actions you can take to improve your get, including making sure all your expense was reduced promptly and cutting your expenses.
Read our ultimate guide to change your credit history for the full lowdown. We’ve also put together a 12-few days bundle to a better credit score, which breaks it down into easy-to-follow steps.
5. Register in order to 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 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.
6. Maintain your statement money
Another essential thing you can do to increase your credit rating and you may odds of getting the application acknowledged will be to keep 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 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 percentage, so that your credit file isn’t affected. Consider setting up a direct debit so you never miss a payment.
If you check your credit file and get that it’s perhaps not real, attempt to get in touch with the financial institution to get it updated. Otherwise, wrong information you will impression your credit score as well as your capability to score home financing.
Ensure that info like your title and you may target was exhibiting truthfully, and you can dispute people errors (eg borrowing from the bank queries, circumstances or monetary associations) you don’t understand. Keep in mind required many weeks to own errors to get upgraded, according to the lender additionally the credit reference agencies, so the ultimately you appear towards the this the greater.
8. Clean out people dated monetary links
If you have ever got a shared economic tool which have someone else, this may reveal in your credit file. It will not affect your credit score nevertheless may affect how lenders see you. So if you’re associated with the anyone who has a woeful credit record, it might be best to get rid of links together out of their declaration this will not echo badly you.
First, make sure the joint membership could have been closed. Up coming contact the appropriate borrowing source companies to help you consult an effective notice of disassociation’ to remove people links out of your credit report.
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 loan 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 security with a large deposit behind you.
