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 numerous things to do to boost the rating, plus making sure your entire bills was repaid promptly and you will lowering your expenses.
Read our ultimate guide to improve your credit history for the full lowdown. We’ve also put together a 12-times plan to a better credit score, which breaks it down into easy-to-follow steps.
5. Check in so you’re able to choose
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 situations. 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 the costs payments
Another significant thing you can do to improve your credit score and you can likelihood of getting the application accepted is to try to maintain your bill 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 issues 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 online payday loan Arkansas 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 minimal commission, so that your credit file isn’t affected. Consider setting up a direct debit so you never miss a payment.
For individuals who look at your credit report and find it is maybe not appropriate, make an effort to get in touch with the lending company to get it current. If you don’t, incorrect guidance you may impact your credit score and your power to get a mortgage.
Make sure information such as your identity and you may target are indicating correctly, and you will argument any mistakes (eg borrowing online searches, points otherwise monetary relationships) you never understand. Be aware that it will take many weeks to possess problems becoming up-to-date, with respect to the bank additionally the borrowing reference company, and so the sooner or later you look on the which the higher.
8. Remove one dated monetary connections
If you’ve ever had a joint monetary unit that have another individual, this will inform you on your own credit file. It won’t apply to your credit score but it could affect just how lenders see you. And if you’re associated with the someone who has a woeful credit record, it will be best to reduce ties together away from the declaration so it doesn’t echo improperly on you.
Firstly, ensure that the mutual account could have been finalized. Upcoming get in touch with the relevant borrowing from the bank resource agencies to demand an effective find out-of disassociation’ to eliminate people connections from the credit history.
9. Enhance your put
The higher your deposit, the lower the amount you’ll need to borrow from the bank. This is known as your financing 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 collateral with a large deposit behind you.