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 various steps you can take to boost the score, and additionally ensuring that any debts was paid back promptly and you will reducing your expense.
Read our ultimate guide to replace your credit score for the full lowdown https://paydayloanalabama.com/citronelle/. 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 register as this can improve your credit score by around fifty 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 qualified.
6. Maintain your bill payments
Another essential action you can take to improve your credit score and you may probability of having your app approved is to keep the expenses 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 situations 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.
If you check your credit history and acquire that it’s perhaps not specific, attempt to get in touch with the lender to get it current. If not, wrong suggestions you are going to impact your credit rating as well as your power to score home financing.
Make certain that facts such as your label and you can target are proving precisely, and you can conflict one problems (for example credit searches, products otherwise financial connections) that you don’t understand. Keep in mind required several weeks to possess problems to-be upgraded, depending on the lender and the borrowing reference department, and so the sooner you appear towards which the higher.
8. Lose any dated financial ties
If you’ve ever had a joint economic product which have someone else, this can show on the credit file. It’s not going to affect your credit rating but it make a difference just how lenders view you. So if you’re with the somebody who has a poor credit record, it might be better to cure connections using them off your declaration so it cannot mirror improperly for you.
First, make sure the joint account might have been signed. Upcoming get in touch with the appropriate credit site agencies so you can consult a great observe regarding disassociation’ to get rid of one connections from the credit report.
9. Raise 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 well 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 guarantee with a large deposit behind you.
