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 things to do to improve the score, plus making certain all your bills was paid off promptly and you will cutting your debts.
Read our ultimate guide to replace 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 to help you choose
Before you make a mortgage application, make sure you are on the electoral register as this can improve your credit score by around fifty factors. 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 eligible.
six. Maintain your expenses repayments
Another significant action you can take to boost your credit rating and likelihood of having your app accepted is to try 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 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 commission, so that your credit file isn’t affected. Consider setting up a direct debit so you never miss a payment.
For folks who check your credit history and acquire that it’s perhaps not accurate, just be sure to get in touch with the lending company to get it updated. If not, completely wrong recommendations you certainly will effect your credit score plus capability to rating a home loan.
Ensure that facts like your title and address are exhibiting precisely, and you may conflict one mistakes (instance borrowing hunt, items or economic connections) you don’t acknowledge. Keep in mind it will require a few weeks for errors to be updated, with respect to the bank while the borrowing from the bank reference agency, and so the fundamentally you appear towards that it the better.
8. Beat one old economic links
If you have ever had a shared financial device with another person, this may inform you on your own credit file. It will not apply at your credit rating it make a difference to exactly how lenders see you. And if you’re of someone who has a poor credit record, it will be better to beat ties together with them away from your own statement that it cannot echo poorly you.
First and foremost, make sure the combined account could have been finalized. Then get in touch with the relevant credit site companies to help you consult a good see regarding disassociation’ to remove any connections from your own credit history.
nine. Improve put
The higher your deposit, the lower the amount you’ll need to borrow from the bank. This is known as your mortgage so you can value‘ (or LTV). Saving a large deposit can boost your chances of getting your mortgage installment loans online in New York 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.