7. Improve people mistakes in your credit file
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 many things you can do to improve the score, and making certain that all your valuable debts is actually repaid promptly and cutting your bills.
Read our ultimate guide to change your credit score for the full lowdown. We’ve also put together a 12-few days plan to a better credit score, which breaks it down into easy-to-follow steps.
5. Sign in in order to vote
Before you make a mortgage application, make sure you are on the electoral sign in as this can improve your credit score by around 50 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 statement repayments
Another essential action you can take to improve your credit score and you may odds of getting your software approved would be to keep your bill 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 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 lowest percentage, 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 the credit file and get that it’s not real, try to get in touch with the lender to have it current. Otherwise, incorrect advice you will perception your credit score along with your capability to get home financing.
Make sure facts just like your term and you may target is indicating correctly, and dispute one errors (for example borrowing from the bank hunt, circumstances or financial connectivity) you do not acknowledge. Be aware that it will require several weeks for errors to be updated, according to lender plus the borrowing from the bank site department, so that the fundamentally you look with the this the higher.
8. Remove any old economic connections
If you’ve ever got a shared economic equipment that have another person, this will inform you on the credit report. It won’t apply to your credit score nevertheless can affect just how loan providers see you. And if you’re associated with the somebody who has a poor credit record, it will be better to clean out ties with these people from their report that it will not mirror badly for you.
To start with, ensure that the shared membership has been signed. After that contact the appropriate borrowing resource companies in order to demand an effective observe regarding disassociation’ to eliminate people ties from your own credit report.
nine. Improve your put
The higher your deposit, the lower the amount you’ll need to borrow from the bank. This imperative link is known as your mortgage 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 security with a large deposit behind you.
