Improving your credit rating
When applying for a mortgage, the lender will assess your credit rating to predict your likely financial behaviour. Credit scoring will dictate which mortgage products you can receive from lenders.
There are some simple things that you can do to help improve your credit rating:
- Take out a credit card or a mobile phone contract and prove that you are a responsible consumer by paying off the balance every month
- Your total amount of debt is a key factor in getting a mortgage, so avoid taking out additional debt or making large credit purchases until after you have purchased your new home.
- Cancel unused credit cards and accounts
- Make sure that you are on the electoral roll
- Pay off loans and credit agreements ahead of schedule.
- Make sure that your credit files are correct. You can check your credit reference file by ordering it online for a small fee from the main credit reference agencies and, if necessary, you can appeal any inaccuracies.
- If you have been refused credit, don’t go and apply elsewhere because too many searches may end up giving lenders the impression that you are over-stretching yourself.
Applying for a Mortgage in Principle>>
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