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 many different things to do to boost your own get, as well as ensuring that your entire bills try paid timely and cutting your expense.
Read our ultimate guide to change your credit score for the full lowdown. We’ve also put together a 12-day bundle to a better credit score, which breaks it down into easy-to-follow steps.
5. Sign in 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 50 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.
6. Keep the costs repayments
Another important thing you can do to improve your credit score and you can possibility of getting the application approved would be to keep statement money.
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 facts 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 people who check your credit report and get it is perhaps not direct, try to get in touch with the lending company to have it up-to-date. If you don’t, incorrect information you can expect to effect your credit rating as well as your ability to rating home financing.
Make certain that details like your name and you can target try showing truthfully, and you may argument one problems (including borrowing looks, circumstances otherwise financial contacts) you do not acknowledge. Bear in mind that required many weeks for loan places Boaz mistakes becoming updated, according to the bank additionally the borrowing from the bank source service, so the sooner or later you appear to your which the greater.
8. Lose any old economic links
If you have ever had a shared financial unit with another individual, this can let you know on your credit file. It will not affect your credit rating but it can impact how lenders view you. And if you are associated with the anyone who has a woeful credit history, it could be better to cure connections with these people out of their statement that it cannot echo poorly for you.
First and foremost, make sure the combined account has been closed. Following contact the relevant borrowing reference agencies to request an excellent see of disassociation’ to get rid of one connections from your credit history.
9. 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 value‘ (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 guarantee with a large deposit behind you.
