To access the best mortgage deals it is important to have a good credit 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 numerous actions you can take to increase their rating, including ensuring that your expenses are paid down timely and you may cutting your expenses.
Read our ultimate guide to alter your credit history for the full lowdown. We’ve also put together a 12-day plan to a better credit score, which breaks it down into easy-to-follow steps.
5. Sign in so you’re able to vote
Before you make a mortgage application, make sure you are on the loans Belk electoral check in as this can improve your credit score by around fifty 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 qualified.
6. Maintain your expenses repayments
Another essential action you can take to improve your credit score and you can likelihood of getting the app approved is to keep your bill 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 items 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 minimal 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 it is maybe not accurate, try to contact the lender to get it upgraded. Otherwise, completely wrong suggestions you can expect to impression your credit rating and your ability to rating a home loan.
Make certain that details just like your name and you can target is indicating correctly, and you can argument one problems (for example borrowing looks, affairs otherwise economic connectivity) you don’t understand. Keep in mind required few weeks having problems become updated, according to bank plus the credit reference department, so that the sooner or later you appear with the which the higher.
8. Eliminate any dated financial connections
If you’ve ever had a shared monetary product which have someone else, this will let you know on your own credit report. It won’t connect with your credit score nevertheless make a difference exactly how loan providers see you. So if you’re regarding the someone who has a woeful credit records, it could be far better remove links using them out-of your own report so it does not echo improperly on you.
First of all, make sure the combined account might have been signed. After that contact the relevant borrowing resource enterprises to demand an effective find regarding disassociation’ to eradicate people connections out of your 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 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 security with a large deposit behind you.