To access the best mortgage deals it is important to have a a good credit score 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 activities to do to increase your get, and additionally ensuring that any bills is actually repaid punctually and you can reducing your costs.
Read our ultimate guide to replace your credit history for the full lowdown. We’ve also put together a 12-times bundle to a better credit score, which breaks it down into easy-to-follow steps.
5. Register to help you choose
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 products. 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 expenses repayments
Another essential action you can take to boost your credit rating and probability of getting the app approved is always to keep the bill 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 factors 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 fee, 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 your credit file and get it is perhaps not appropriate, try to contact the lending company to get it upgraded. Otherwise, completely wrong guidance you’ll feeling your credit rating plus power to get home financing.
Make sure details like your title and you will address try demonstrating precisely, and you can argument one errors (for example borrowing from the bank searches, activities otherwise monetary connectivity) you don’t recognise. Bear in mind that it can take many weeks having errors to be upgraded, according to lender additionally the credit resource agency, and so the ultimately you appear for the it the higher.
8. Beat one dated financial connections
If you’ve ever had a shared financial tool having someone else, this may inform you on the credit report. It won’t apply to your credit rating but it can impact exactly how lenders see you. And if you’re regarding the someone who has a dismal credit background, it could be best to dump connections together with them from their report which doesn’t reflect poorly for you.
To start with, make sure the combined membership could have been closed. Following get in touch with the relevant borrowing from the bank site businesses to help you request a beneficial ‘observe from disassociation’ to eradicate any links 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 ‘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 personal installment loans Columbus TX 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.