To access the best mortgage deals it is important to have a a good credit score 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 many steps you can take to boost your score, and making certain that all http://www.paydayloanalabama.com/chatom your valuable bills was paid back timely and you may lowering your costs.
Read our ultimate guide to replace your credit history for the full lowdown. We’ve also put together a 12-times package to a better credit score, which breaks it down into easy-to-follow steps.
5. Check in to help you 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 eligible.
6. Keep your statement payments
Another important action you can take to increase your credit rating and you may likelihood of getting your application recognized would be to keep your statement money.
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 lowest commission, 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 file and acquire it is maybe not real, attempt to get in touch with the lender to have it current. Otherwise, completely wrong recommendations you certainly will perception your credit rating along with your power to get a mortgage.
Make certain information just like your label and you may address is actually demonstrating accurately, and you will conflict any mistakes (such as for instance credit queries, items or monetary associations) that you do not acknowledge. Bear in mind that it will take a few weeks to own errors become upgraded, with regards to the lender as well as the borrowing source agencies, therefore the sooner you look into the which the higher.
8. Lose one dated economic ties
If you’ve ever got a shared economic unit that have another individual, this will let you know in your credit report. It won’t connect with your credit rating nevertheless make a difference to exactly how loan providers see you. And if you are for the somebody who has a woeful credit records, it could be far better clean out ties together with them of your own report this will not reflect badly on you.
Firstly, ensure that the joint membership could have been closed. Up coming contact the relevant borrowing from the bank reference enterprises so you can demand an excellent see away from disassociation’ to eliminate people ties from the credit history.
9. Improve 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’re able to worthy of‘ (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.
