To access the best mortgage deals it is important to have a a good credit score get. 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 various steps you can take to increase their get, together with ensuring that your expense is repaid punctually and you may cutting your expense.
Read our ultimate guide to improve your credit rating 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. Sign in 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 factors. 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.
six. Maintain your costs payments
Another important thing you can do to improve your credit score and probability of getting your application recognized will be to keep the statement costs.
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 affairs 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 check your credit file and get online installment loans for bad credit in PA it is maybe not exact, attempt to contact the lending company to have it current. Or even, incorrect recommendations you can expect to perception your credit rating plus ability to score a home loan.
Make certain facts such as your name and you will address was showing correctly, and argument people problems (like borrowing from the bank looks, points or financial contacts) that you do not recognise. Keep in mind it will take a few weeks getting problems to get updated, according to financial additionally the credit resource service, so that the in the course of time you appear towards which the greater.
8. Clean out people old financial connections
If you have ever had a mutual economic unit with another person, this can reveal on your own credit file. It won’t apply to your credit rating however it may affect just how loan providers see you. And if you’re of anyone who has a dismal credit background, it might be better to dump ties together with them regarding your own statement it doesn’t reflect improperly for you.
Firstly, make sure the shared account has been closed. Upcoming get in touch with the appropriate credit source organizations to help you demand a great see out of disassociation’ to eliminate one ties out of your credit history.
9. Raise 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 guarantee with a large deposit behind you.