In our previous blogs we have explained how mortgage lenders use a formula to calculate a score and some of the things that can adversely affect this score and the outcome of your mortgage application.
In this article we explain some of the basic checks you can make to improve your rating:
- Register on the electoral roll at your current address. You don’t have to wait for a reminder you can apply at any time on Gov.UK.
- Make sure all your existing credit arrangements are registered to your correct name and current address
- Ensure there are no other mistakes on your file, such as other people's debts or payment. If you find errors challenge them and get them removed.
- Don't make too many credit applications in a short space of time. Credit searches stay on file for 12 months. Space them out.
- If you have little or no credit history, apply for a credit card spend small amounts each month and repay in full.
- Set up direct debits so that all payments are made on time. If you have problems negotiate smaller payments and stick to them.
- If you have savings use them to pay off your debts.
- When you take out a joint mortgage or joint bank account, your credit history is linked to that person. If they have a bad credit rating it could impact yours. If you split, write and tell the credit agencies.
This list is not exhaustive so always disclose all relevant facts and details to your adviser so that you get comprehensive mortgage advice relevant to your individual situation and the best lender for you.
Your home may be repossessed if you do not keep up repayments on your mortgage. You may have to pay an early repayment charge to your existing lender if you remortgage.