To access the best mortgage deals it is important to have a good credit 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 many different activities to do to increase their rating, in addition to making sure all expense was paid down punctually and you can lowering your bills.
Read our ultimate guide to change your credit score for the full lowdown. We’ve also put together a 12-week package to a better credit score, which breaks it down into easy-to-follow steps.
5. Check in so you’re able to vote
Before you make a mortgage application, make sure you are on the electoral sign in as this can improve your credit score by around 50 products. 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 statement repayments
Another essential thing you can do to increase your credit rating and you will possibility of getting the application approved is to try to keep the costs costs.
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 facts 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 payment, so that your credit file isn’t affected. Consider setting up a direct debit so you never miss a payment.
For individuals who check your credit history and get it is maybe not specific, just be sure to get in touch with the financial institution to have it current. Or even, completely wrong recommendations could effect your credit score as well as your power to rating a home loan.
Make sure details like your label and you will address was proving accurately, and you may disagreement people mistakes (for example borrowing queries, situations otherwise financial contacts) that you do not acknowledge. Be aware that it requires several weeks having errors is updated, according to the bank as well as the credit source agency, and so the eventually you appear towards it the higher.
8. Beat people dated monetary connections
If you have ever had a combined monetary tool with someone, this will reveal on the credit history. It won’t apply to your credit rating but it could affect exactly how lenders see you. So if you’re of this somebody who has a dismal credit record, it might be best to eliminate links using them out-of the declaration it will not reflect improperly pragmatic site on you.
First, make sure the mutual account might have been closed. Then get in touch with the relevant borrowing source businesses to help you consult a find from disassociation’ to get rid of one ties from your own 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 in order to 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 collateral with a large deposit behind you.
