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 many steps you can take to improve your own get, also making sure all expense is actually paid down punctually and you can lowering your bills.
Read our ultimate guide to change your credit rating for the full lowdown. We’ve also put together a 12-month package to a better credit score, which breaks it down into easy-to-follow steps.
5. Check in to 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 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 your bill payments
Another significant action you can take to improve your credit score and you may likelihood of getting your application recognized is to keep the 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 circumstances 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 payment, 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 the credit history and get that it is perhaps not particular, you will need to contact the lending company to have it current. If you don’t, incorrect information you can expect to feeling your credit rating along with your capacity to get home financing.
Guarantee that info just like your title and you can target is actually appearing accurately, and you may dispute any mistakes (instance borrowing from the bank queries, affairs or economic relationships) you don’t understand. Be aware that it will require few weeks to have mistakes are upgraded, according to bank while the borrowing from the bank reference agencies, therefore the sooner you look towards which the better.
8. Remove any dated economic connections
If you’ve ever got a mutual monetary device which have someone else, this will inform you on the credit history. It won’t affect your credit score however it make a difference to how lenders see you. So if you’re associated with someone who has a woeful credit history, it could be better to reduce links with these people out-of the statement loans no teletrack direct lender that it does not reflect improperly for you.
First of all, ensure that the mutual account has been finalized. Next contact the appropriate borrowing from the bank reference firms to help you consult a good find regarding disassociation’ to eradicate people ties out of your credit file.
9. Improve put
The higher your deposit, the lower the amount you’ll need to borrow from the bank. This is known as your loan in order 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 collateral with a large deposit behind you.
