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 actions you can take to boost the get, also making certain that all of your current expense are paid on time and you will cutting your costs.
Read our ultimate guide to alter your credit score 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 so you can 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 fifty items. 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. Keep the costs repayments
Another essential action you can take to improve your credit rating and you will likelihood of having your software accepted should be to maintain your costs 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 situations 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.
For people who look at the credit report and get that it is maybe not accurate, make an effort to get in touch with the lender to have it current. Otherwise, wrong recommendations you may impression your credit score and your power to rating a home loan.
Make sure that information like your title and you can target is demonstrating accurately, and dispute any problems (for example credit looks, points otherwise monetary connections) you don’t recognise. Bear in mind that it can take weeks to have problems getting current, with respect to the lender therefore the borrowing resource department, therefore the eventually you look towards the so it the greater.
8. Eliminate people dated economic links
If you’ve ever had a mutual monetary device which have another individual, this may inform you on your credit history. It will not connect with your credit rating but it make a difference to exactly how loan providers see you. So if you’re associated with anyone who has a woeful credit records, it would be far better reduce connections with these people regarding your own report https://paydayloanalabama.com/camden/ it doesn’t mirror badly you.
To begin with, make sure the joint account might have been closed. Following contact the appropriate credit resource firms to help you request a great find out of disassociation’ to get rid of one links from your credit history.
9. Improve deposit
The higher your deposit, the lower the amount you’ll need to borrow from the bank. This is known as your financing in order to worthy of‘ (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.
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