To access the best mortgage deals it is important to have a a good credit score 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 things to do to boost your own rating, and additionally making sure your entire expenses try reduced promptly and you may cutting your debts.
Read our ultimate guide to improve your credit score for the full lowdown. We’ve also put together a 12-day package to a better credit score, which breaks it down into easy-to-follow steps.
5. Sign in to help you vote
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 situations. 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 action you can take to increase your credit rating and you may odds of getting the application approved is always 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 circumstances 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 commission, so that your credit file isn’t affected. Consider setting up a direct debit so you never miss a payment.
For folks who look at the credit history and find that it is not real, you will need to contact the lender to get it up-to-date. If you don’t, completely wrong pointers you’ll perception your credit rating as well as your capacity to rating home financing.
Make sure information such as your term Ohio personal installment loan laws and you can target was demonstrating precisely, and you may conflict any problems (such borrowing queries, factors otherwise financial contacts) that you do not acknowledge. Bear in mind that it will require many weeks having mistakes as upgraded, according to lender as well as the borrowing from the bank resource service, so the ultimately you appear to the that it the higher.
8. Cure people old monetary connections
If you’ve ever got a joint financial tool which have another individual, this will show on the credit report. It’s not going to connect with your credit score however it make a difference just how loan providers view you. And if you are associated with somebody who has a woeful credit history, it might be better to clean out ties together from the statement which doesn’t mirror improperly on you.
To start with, make sure the shared membership has been signed. Up coming get in touch with the relevant borrowing site agencies to consult a great find out-of disassociation’ to eradicate any ties from your own credit file.
nine. Improve your put
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 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 collateral with a large deposit behind you.
