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 many different actions you can take to improve the rating, and making certain all expense is paid on time and you may lowering your costs.
Read our ultimate guide to alter your credit history for the full lowdown. We’ve also put together a 12-times plan to a better credit score, which breaks it down into easy-to-follow steps.
5. Register 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 fifty 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 the expenses money
Another important thing you can do to improve your credit score and you may odds of getting your software acknowledged is 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 issues 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 fee, 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 report and get that it’s perhaps not right, make an effort to get in touch with the financial institution to get it up-to-date. If you don’t, incorrect information you will definitely perception your credit rating plus capability to get a home loan.
Guarantee that details such as your term and target try showing precisely, and you can dispute one problems (for example borrowing online searches, affairs otherwise financial relationships) you never understand. Bear in mind that it can take a few weeks to possess mistakes becoming current, depending on the bank while the credit site service, so the eventually you look towards that it the better.
8. Lose any old financial connections
If you have ever had a mutual financial product having another person, this can tell you on your credit file. It will not affect your credit score but it can impact exactly how lenders view you. So if you’re from the someone who has a woeful credit history, it could be better to eradicate ties with these people out of your statement which doesn’t echo poorly you.
Firstly, make sure the shared membership might have been closed. Then contact the appropriate borrowing from the bank resource companies so you’re able to demand a good notice money loans in Anderson Alabama off disassociation’ to eradicate people connections out of your credit report.
9. Increase your put
The higher your deposit, the lower the amount you’ll need to borrow from the bank. This is known as your loan so you can 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 security with a large deposit behind you.
