eight. Augment any mistakes in your credit history
To access the best mortgage deals it is important to have a good credit 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 various things to do to improve your score, plus making certain any bills is actually paid down timely and you can reducing your expenses.
Read our ultimate guide to change your credit rating for the full lowdown. We’ve also put together a 12-day bundle to a better credit score, which breaks it down into easy-to-follow steps.
5. Register in order to 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 fifty things. 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 statement repayments
Another essential action you can take to boost your credit score and possibility of getting your software approved should be to keep your bill payments.
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.
If you look at the credit history and get that it is maybe not right, attempt to get in touch with the financial institution to get it up-to-date. If you don’t, completely wrong recommendations you can expect to perception your credit score plus capability to score home financing.
Make sure information just like your identity and target are showing precisely, and you may disagreement any errors (such borrowing looks, situations otherwise monetary contacts) that you do not recognise. Keep in mind it can take a few weeks getting problems is up-to-date, according to the bank together with credit site department, so the in the course of time you look toward this the higher.
8. Lose any old economic connections
If you have ever got a shared economic unit that have someone else, this can tell you on your credit file. It’s not going to connect with your credit score but it may affect how loan providers see you. And if you’re of the somebody who has a poor credit history, it might be best to installment loans in Long Beach New York beat links using them away from the statement it doesn’t reflect badly on you.
To begin with, make sure the joint membership might have been closed. Then contact the relevant borrowing from the bank site enterprises in order to request a beneficial notice off disassociation’ to get rid of one links from your credit report.
9. Improve your put
The higher your deposit, the lower the amount you’ll need to borrow from the bank. This is known as your mortgage so you’re able to really worth‘ (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.