Whether you are a first time buyer, remortgaging or purchasing your next property, your credit history will be checked. I will go over a few little things you can do to boost your credit score.
Start by checking your credit report with credit referencing agencies, Experian or Equifax for example, to see what your credit rating is like and also see what it says about your credit history. You should dispute things that you believe are incorrect. For example if you had a CCJ or default a number of years ago which you settled, but it is still showing as unsettled on your credit report, you need to get this changed as it will be detrimental when applying for a mortgage, something like that could put you back months when it comes to a mortgage and you may miss out on your dream home.
Don’t get too hung up on your credit score it self ,as the background information is more important from a mortgage lenders point of view.
You will need to be able to show lenders that you have a history of using credit, without being reliant on it. Paying for your credit card, mobile phone contract and utility bills on time will help to show that you are financially responsible.
You should make sure you are on the electoral roll at your current address, which helps the lenders and credit reference agencies pin you down to an address. This is important as it allows the credit referencing agencies to confirm your name and address, but it also helps them to trace your credit history when you have moved, thus expanding the picture of your credit worthiness. If you aren’t on the electoral roll it can have an impact on your overall credit score and prolong your mortgage process when you come to apply. To register to vote, go onto the government website and follow their instructions.
Finally if you have any old credit accounts which have a nil balance and are no longer in use, consider closing them as this can also negatively affect your credit score.
When you are ready to apply for your mortgage you should consult an independent financial adviser to help steer you through the process.
Daniel Brown BSc (Hons), Cert SMP
5th June 2017