To access the best mortgage deals it is important to have a good credit 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 numerous activities to do to improve the score, and making certain that all your valuable debts was 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-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 electoral register as this can improve your credit score by around 50 affairs. 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 costs repayments
Another essential thing you can do to increase your credit score and you will odds of having your application accepted is to maintain your costs 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 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 minimal percentage, so that your credit file isn’t affected. Consider setting up a direct debit so you never miss a payment.
For individuals who check your credit file and get that it’s not appropriate, try to get in touch with the lender to get it up-to-date. If you don’t, incorrect guidance you will definitely feeling your credit score along with your capacity to get a mortgage.
Make certain Louisiane personal loans info such as your label and you may target is actually appearing accurately, and you can conflict one mistakes (such as for example borrowing from the bank searches, things or economic connections) you do not recognise. Be aware that it can take many weeks having errors are up-to-date, according to bank while the borrowing from the bank resource company, therefore, the eventually you appear with the that it the higher.
8. Eradicate one old monetary links
If you have ever had a joint financial product with someone, this may show on the credit history. It will not apply at your credit rating however it make a difference how lenders see you. And if you’re for the someone who has a poor credit history, it would be best to eradicate connections together out-of your declaration this cannot mirror defectively for you.
First, ensure that the shared membership could have been signed. Then contact the relevant borrowing site providers so you can demand good find out of disassociation’ to remove any links from your credit file.
nine. Boost your put
The higher your deposit, the lower the amount you’ll need to borrow from the bank. This is known as your loan so you can 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 collateral with a large deposit behind you.