Improve credit rating before remortgaging, expert advises

Friday, February 5 2010

A couple looking to remortgage their property have been advised to make sure their credit score is improved before doing so.

The pair own a £300,000 house with a £126,000 mortgage and their two-year fixed-rate deal at 6.44 per cent will come to an end in a few months, allowing them to move onto a better deal, however, one partner has made late repayments recently.

The Guardian's Ask the Expert advised that credit scores record any defaults on repayments for at least 36 months and that the punctuality of any bill settlements should be looked at before considering a remortgage.

"At the very least he should consider setting up a direct debit to repay the minimum amount due each month, which will at least make sure his credit account does not show him as paying late," the newspaper recommended.

Chris King from MyIVAAdviser recently claimed that individual voluntary arrangement experts could help those suffering from debt and poor credit ratings.