To access the best mortgage deals it is important to have a a good credit score 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 steps you can take to increase your score, along with making certain that all of your current expenses was paid down timely and you will lowering your debts.
Read our ultimate guide to change your credit score 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.
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5. Sign in in order to vote
Before you make a mortgage application, make sure you are on the electoral sign in as this web united cash loans can improve your credit score by around fifty items. 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 the statement money
Another important action you can take to boost your credit score and you can probability of having your app accepted is to keep the costs repayments.
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 facts 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 individuals who check your credit history and acquire that it is maybe not perfect, you will need to get in touch with the financial institution to get it upgraded. If you don’t, incorrect suggestions you are going to perception your credit rating along with your capability to score a mortgage.
Make sure information such as your label and target are proving truthfully, and you may conflict one errors (particularly borrowing lookups, things otherwise economic connections) you do not recognise. Bear in mind that required weeks to own problems to-be upgraded, according to the financial therefore the borrowing from the bank resource agencies, so the fundamentally you appear into that it the better.
8. Dump one dated economic links
If you’ve ever got a shared financial product that have someone else, this will show on your credit report. It’s not going to apply to your credit score however it make a difference to how lenders view you. So if you’re associated with the someone who has a poor credit records, it could be better to beat connections together with them off their report it will not reflect defectively you.
To begin with, ensure that the mutual membership has been signed. Upcoming contact the relevant credit reference providers to demand a good find out-of disassociation’ to get rid of one ties out of your credit report.
nine. Boost your deposit
The higher your deposit, the lower the amount you’ll need to borrow from the bank. This is known as your loan 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.
