seven. Boost one problems on your own credit reports

To access the best https://www.cashadvancecompass.com/installment-loans-ut/ mortgage deals it is important to have a good credit score. 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, plus ensuring that all your valuable expense is paid back promptly and you may cutting your bills.

Read our ultimate guide to improve your credit rating for the full lowdown. We’ve also put together a 12-day package to a better credit score, which breaks it down into easy-to-follow steps.

5. Register so you can 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 issues. 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.

6. Maintain your bill money

Another essential action you can take to improve your credit rating and you will chances of having your software acknowledged is to try 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 affairs 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 commission, so that your credit file isn’t affected. Consider setting up a direct debit so you never miss a payment.

If you look at your credit history and find that it is maybe not accurate, make an effort to contact the lending company to get it upgraded. Or even, incorrect advice you certainly will impact your credit rating along with your capacity to get home financing.

Make sure that information just like your identity and address are exhibiting truthfully, and you can conflict one problems (such borrowing hunt, items otherwise financial relationships) that you don’t understand. Keep in mind it will take few weeks to possess problems is up-to-date, depending on the bank and also the borrowing site agencies, so the fundamentally you look to the it the higher.

8. Get rid of any old economic connections

If you’ve ever had a combined economic tool that have someone else, this will show on your own credit file. It will not apply to your credit score but it can affect just how loan providers see you. And if you are with the somebody who has a dismal credit records, it will be far better treat ties with them regarding your own report this does not reflect defectively on you.

First and foremost, ensure that the mutual account could have been closed. Then contact the relevant credit site companies so you’re able to demand good ‘observe of disassociation’ to remove one links out of your credit file.

nine. Increase 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 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 equity with a large deposit behind you.