To access the best mortgage deals it is important to have a good credit 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 numerous activities to do to boost your own get, together with making sure all costs try paid off on time and you will reducing your bills.
Read our ultimate guide to replace your credit score for the full lowdown. We’ve also put together a 12-day plan to a better credit score, which breaks it down into easy-to-follow steps.
5. Register to choose
Before you make a mortgage application, make sure you are Idaho personal loans on the electoral check in as this can improve your credit score by around 50 activities. 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 statement payments
Another significant action you can take to increase your credit rating and you may likelihood of getting the app recognized is to try to keep the costs 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 situations 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 percentage, so that your credit file isn’t affected. Consider setting up a direct debit so you never miss a payment.
For many who look at your credit report and acquire it is perhaps not appropriate, make an effort to get in touch with the lending company to get it current. Or even, wrong pointers you certainly will effect your credit score along with your power to get home financing.
Guarantee that info like your identity and you will target try demonstrating truthfully, and disagreement one errors (such as for example borrowing from the bank online searches, issues or monetary relationships) you don’t recognise. Bear in mind that it can take many weeks for problems are updated, according to the bank and borrowing source agencies, so the in the course of time you look for the which the higher.
8. Clean out any dated monetary ties
If you have ever had a mutual economic equipment that have someone else, this can inform you on your own credit file. It won’t apply at your credit score but it may affect just how lenders view you. So if you’re of this somebody who has a dismal credit record, it would be far better lose ties together with them out of the report it will not echo defectively for you.
To start with, make sure the joint account could have been signed. Following contact the appropriate credit resource agencies so you can demand a great see from disassociation’ to eradicate any ties from your credit history.
9. Improve deposit
The higher your deposit, the lower the amount you’ll need to borrow from the bank. This is known as your loan to help you 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 collateral with a large deposit behind you.