A bad credit mortgage is simply a mortgage for borrowers with a poor credit score, a low credit rating, or any other kind of adverse credit history.
Not all UK lenders offer bad credit mortgage loans, as credit issues are a bigger deal to some mortgage providers than others.
Getting a mortgage with bad credit can be tough, especially if you have defaults,– but it’s not impossible.
Arranging a Bad Credit Mortgage.
In the UK today some 15% of adults have some form of adverse credit registered against them. That can be a “credit blip” a missed credit card payment or a late payment on the mortgage, it might have been caused by a “life event” – a bereavement or divorce making payment management difficult. Whatever the cause we can rest assured it’s not unusual!
The most important thing to do when you’re looking at your mortgage situation is to take advice at an early stage. One of our expert brokers will take the time to understand your credit situation and work with lenders who will accept your application.
Things to do to help your mortgage application;
- Get your credit file – not just your score. You can access your file from one of the following sites;
- There are also a number of apps available – just search!
- Clear expensive debts – credit cards debts or similar can reduce your affordability
- Use something like the snowball calculator to repay your worst debts first.
- If you can save regularly that shows the ability to cover payments and will build your deposit – once your expensive debts have been cleared.
- Work with our brokers from an early stage to assess the best lender for your credit situation, how they will view your credit file and how things can be improved before you need to apply.
We do find many applicants credit is nothing like as bad as they expect, so check out the first time buyer, buy to let or self employed mortgage sections of the website to see what’s available to you or click here to return to the home page