To access the best mortgage deals it is important to have a good credit 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 activities to do to boost your rating, plus making certain that your entire costs is paid off on time and you can lowering your debts.
Read our ultimate guide to improve your credit history for the full lowdown. We’ve also put together a 12-times bundle to a better bad credit installment loans West Virginia credit score, which breaks it down into easy-to-follow steps.
5. Sign in to help you choose
Before you make a mortgage application, make sure you are on the electoral register as this can improve your credit score by around fifty circumstances. 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. Maintain your costs money
Another significant action you can take to improve your credit score and you will possibility of having your application accepted is to keep your expenses 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 activities 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 percentage, so that your credit file isn’t affected. Consider setting up a direct debit so you never miss a payment.
For those who check your credit history and find that it’s maybe not specific, attempt to contact the lending company to have it up-to-date. If not, incorrect advice you may impact your credit score as well as your capability to rating a mortgage.
Ensure that facts just like your identity and you may address was proving precisely, and dispute one problems (such borrowing online searches, affairs otherwise economic contacts) that you don’t understand. Bear in mind that it requires weeks having errors are current, depending on the lender in addition to borrowing resource agency, and so the in the course of time you appear on the it the better.
8. Get rid of people old financial ties
If you have ever got a mutual monetary equipment with another individual, this will let you know on your credit history. It will not affect your credit rating it can impact just how lenders see you. And if you are of the anyone who has a dismal credit record, it could be far better treat ties with them regarding their statement that it doesn’t reflect poorly for you.
First and foremost, ensure that the joint account has been finalized. After that contact the relevant credit site firms so you can demand good observe regarding disassociation’ to eradicate people links from the credit file.
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 loan to help you 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 security with a large deposit behind you.
