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 increase the rating, as well as ensuring that all your valuable expense are reduced on time and cutting your expenses.
Read our ultimate guide to change your credit score for the full lowdown. We've also put together a 12-month bundle to a better credit score, which breaks it down into easy-to-follow steps.
5. Register so you can vote
Before you make a mortgage application, make sure you are on the electoral check in as this can improve your credit score by around 50 points. 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. Maintain your bill costs
Another significant action you can take to boost your credit rating and you will odds of getting the app acknowledged will be to maintain your expenses 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 points 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 minimal payment, so that your credit file isn't affected. Consider setting up a direct debit so you never miss a payment.
For folks who check your credit file and get it is maybe not perfect installment loan agency Kingston WI, you will need to get in touch with the lender to have it updated. Or even, completely wrong advice you can expect to impact your credit score plus ability to rating a mortgage.
Make sure that info such as your identity and you may target is indicating precisely, and you can conflict any problems (eg borrowing from the bank queries, circumstances or economic connections) you don't recognise. Keep in mind required many weeks getting problems as current, with regards to the lender and credit source department, therefore, the ultimately you look for the it the greater.
8. Clean out people dated monetary ties
If you've ever had a combined financial equipment with someone, this will tell you on your credit file. It will not apply at your credit rating it can affect how loan providers view you. And if you're with the anyone who has a poor credit history, it might be better to remove ties using them out of your own declaration this will not mirror improperly you.
Firstly, make sure the joint account could have been closed. Then contact the relevant credit reference organizations to help you consult a beneficial find regarding disassociation' to eliminate one links out of your credit file.
nine. Enhance your deposit
The higher your deposit, the lower the amount you'll need to borrow from the bank. This is known as your financing so you can 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.