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 things you can do to improve your own score, and additionally making certain all your valuable debts are paid down promptly and you can reducing your bills.
Read our ultimate guide to change your credit score for the full lowdown. We’ve also put together a 12-few days plan 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 sign in 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.
6. Keep your bill costs
Another important thing you can do to boost your credit rating and you will probability of getting your app approved is to keep your bill repayments.
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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 activities 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 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 report and get that it is perhaps not accurate, try to get in touch with the lender to have it current. Otherwise, incorrect suggestions you may impact your credit rating plus power to rating a home loan.
Make certain that facts like your identity and you may address was appearing precisely, and you will argument one errors (such borrowing from the bank lookups, circumstances otherwise monetary relationships) that you do not recognise. Be aware that it will take weeks to have problems to get up-to-date, according to bank while the borrowing source department, therefore the at some point you look toward this the better.
8. Reduce people dated financial connections
If you’ve ever had a shared financial device that have another individual, this may reveal in your credit report. It will not affect your credit rating nevertheless can affect exactly how lenders see you. And if you are with the somebody who has a poor credit background, it would be better to dump ties with these people out-of your statement it cannot mirror badly you.
First, ensure that the joint account has been signed. Next contact the appropriate borrowing from the bank resource businesses so you can consult a see out of disassociation’ to remove people links from your own credit file.
9. Enhance your put
The higher your deposit, the lower the amount you’ll need to borrow from the bank. This is known as your financing 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.
