To access the best mortgage deals it is important to have a a good credit score 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 various steps you can take to boost your own score, along with ensuring that all your debts is paid promptly and you may reducing your debts.
Read our ultimate guide to improve your credit score for the full lowdown. We’ve also put together a 12-week 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 check in as this can improve your credit score by around fifty facts. 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 your costs repayments
Another important action you can take to increase your credit score and chances of having your app approved would be to maintain your statement 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 things 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 minimum commission, so that your credit file isn’t affected. Consider setting up a direct debit so you never miss a payment.
For many who check your credit file and get it is maybe not direct, attempt to contact the lender to have it current. If you don’t, incorrect suggestions you will definitely effect your credit score plus capacity to score a home loan.
Make sure info just like your title and you will target try exhibiting precisely, and you may dispute any errors (such as for instance credit looks, activities or economic associations) you do not understand. Bear in mind that https://elitecashadvance.com/installment-loans-sc/ it can take weeks to have mistakes to get up-to-date, according to the bank and also the borrowing from the bank resource institution, and so the fundamentally you appear into the so it the higher.
8. Get rid of people dated economic connections
If you have ever got a shared financial device with someone, this may tell you in your credit file. It’s not going to connect with your credit score but it make a difference to just how loan providers view you. And if you’re regarding the anyone who has a dismal credit records, it might be best to beat ties together with them from your report it cannot echo defectively you.
First of all, ensure that the shared account could have been signed. Then get in touch with the appropriate borrowing resource organizations so you can demand a great observe off disassociation’ to eradicate any connections out of your credit file.
nine. Raise your deposit
The higher your deposit, the lower the amount you’ll need to borrow from the bank. This is known as your mortgage so you’re able 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 collateral with a large deposit behind you.