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 many different steps you can take to improve their get, together with making certain your expense is actually repaid timely 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-week plan to a better credit score, which breaks it down into easy-to-follow steps.
5. Check in in order 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 products. 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 statement payments
Another important action you can take to improve your credit rating and you can chances of getting your app acknowledged is to maintain your expenses payments.
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 points 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 payment, so that your credit file isn’t affected. Consider setting up a direct debit so you never miss a payment.
If you look at the credit file and find that it is perhaps not accurate, you will need to get in touch with the financial institution to have it current. If not, incorrect suggestions you can expect to impact your credit rating as well as your power to rating a mortgage.
Make sure information just like your label and you can address is demonstrating truthfully, and you will argument people errors (for example borrowing online searches, activities otherwise economic associations) you do not acknowledge. Bear in mind that required several weeks to possess problems to be current, with respect to the bank additionally the credit resource department, so that the eventually you appear into the this the greater.
8. Get rid of people dated monetary connections
If you’ve ever had a shared monetary product having another individual, this can show on the credit report. It won’t connect with your credit rating nonetheless it can affect exactly how loan providers see you. online personal loans GA And if you’re of someone who has a woeful credit records, it could be best to get rid of links with them from the report which will not reflect improperly for you.
To begin with, make sure the shared account might have been signed. Upcoming contact the appropriate borrowing source businesses to help you request a good observe out-of disassociation’ to eradicate one connections out of your credit file.
nine. Improve deposit
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 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 security with a large deposit behind you.
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