To access the best mortgage deals it is important to have a a good credit score 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 actions you can take to increase your own score, along with making certain that all your expenses are paid timely and you can cutting your expenses.
Read our ultimate guide to alter your credit score for the full lowdown. We’ve also put together a 12-few days package to a better credit score, which breaks it down into easy-to-follow steps.
5. Check in in order to choose
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 points. 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. Keep the statement money
Another significant thing you can do to improve your credit rating and you will probability of getting your application approved is to keep the statement 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 activities 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.
For those who look at your credit file and get it is perhaps not precise, try to contact the lending company to have it current. If not, wrong guidance you are going to impression your credit score plus ability to rating a mortgage.
Make sure that info such as your label and you may loan places Brookwood address is exhibiting accurately, and you can argument people errors (instance credit queries, factors or financial connectivity) you never understand. Keep in mind it will require few weeks to own problems to-be current, according to the bank additionally the borrowing from the bank source agencies, so the fundamentally you look on it the higher.
8. Eradicate any dated monetary ties
If you have ever got a mutual economic unit with another person, this will reveal on the credit report. It’s not going to apply to your credit score but it can impact how lenders view you. And if you’re of the somebody who has a woeful credit background, it could be far better cure links using them out of your own declaration which doesn’t mirror poorly for you.
First of all, make sure the combined account has been finalized. Next get in touch with the appropriate credit site businesses in order to request a good see out-of disassociation’ to eradicate one links out of your credit file.
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 mortgage in order to really 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.