Mortgage Costs: Don’t Get Caught Out by Credit Report Errors

In the UK, adults have three credit reports, and each can be slightly different, which can lead to costly mistakes if not checked.

Credit reference agencies include Equifax, Experian, and TransUnion, and it's essential to review all three for accuracy.

A credit report error can increase your mortgage costs by thousands of pounds, as seen in a £200,000 mortgage example.

A 4% interest rate can cost an extra £430 a month, while a 7% rate would cost an extra £430, totaling over £129,000 in extra payments.

To boost your credit score, check all three credit reports for accuracy and fix any errors.

Fixing errors can lead to better loan terms and lower mortgage costs, with savings of thousands over the mortgage term.

Registering to vote can also give your credit score a boost, as it confirms your identity and address.

Building a credit history can be achieved by using a credit card little and often and paying it off in full each month.

Avoiding new credit applications can prevent negative marks on your report for six months.

Regularly reviewing your credit report can save you thousands of pounds in mortgage costs over the course of your mortgage term.