To access the best mortgage deals it is important to have a good credit score. 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 actions you can take to improve your rating, along with making sure all of your expenses try repaid on time and you may cutting your costs.
Read our ultimate guide to alter your credit history 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. Sign in so you’re able to choose
Before you make a mortgage application, make sure you are loans in Brookside on the electoral register as this can improve your credit score by around fifty issues. 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 important action you can take to improve your credit score and probability of getting the application recognized is to keep the expenses 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 items 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 many who check your credit history and acquire it is maybe not perfect, just be sure to contact the lending company to have it up-to-date. If you don’t, wrong suggestions you certainly will impact your credit score and your capability to get a mortgage.
Make certain details just like your identity and target are showing accurately, and you may dispute any problems (instance borrowing hunt, items otherwise monetary connectivity) you don’t acknowledge. Keep in mind it will take few weeks for problems is current, according to the bank additionally the borrowing from the bank reference company, therefore the ultimately you look on it the better.
8. Treat any dated financial connections
If you’ve ever got a combined financial product with someone else, this may tell you in your credit history. It will not apply to your credit rating nevertheless can affect exactly how lenders view you. And if you are on the somebody who has a poor credit record, it would be best to reduce connections with them of your own declaration that it does not reflect badly on you.
Firstly, ensure that the shared membership might have been signed. After that contact the appropriate borrowing from the bank resource organizations so you can consult a beneficial observe out-of disassociation’ to remove any connections from your own credit report.
nine. Boost your deposit
The higher your deposit, the lower the amount you’ll need to borrow from the bank. This is known as your loan to help you 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 equity with a large deposit behind you.