Bad Credit Mortgages: What You Need to Know

We are experts in securing bad credit mortgages. Have you had historic credit issues and concerned about your chances of getting a mortgage? Don’t worry. Our experts are here to explain everything you need to know about mortgages with bad credit – and how to boost your chances of being accepted for one.

It’s a common misconception that you can only get a mortgage if your credit history is squeaky clean because it’s often possible to get a mortgage with bad credit.

However it depends on your circumstances such as the type of adverse credit and how recent it was. And it also depends on the lender: each lender has different lending criteria – there is no one size fits all.

So while one High Street lender may not be willing to offer you a mortgage, another lender may be willing to. And bear in mind there are also specialist lenders that could the right option for too. 

The key is to get advice from an expert mortgage adviser who has the up-to-date knowledge of each lender’s lending criteria. They’ll advise you on which lender is most likely to accept your application before applying.

When lenders consider your mortgage application they’ll look at your credit history. And if you have adverse credit they’ll want to know the details when deciding whether to lend. For example:

• Mortgages with defaults: If you’ve failed to make a payment on time, on bills or on outstanding debts, this can be recorded as a default on your credit file. When it comes to mortgages with defaults, the type of default, the number of defaults and how long ago they occurred will all be taken into account when a lender is deciding on whether to lend to you. Each lender has different criteria relating to mortgages with defaults so it’s critical that you get advice on which is most likely to accept you.

• Mortgage with CCJs: County Court Judgements (CCJs) can be ordered against you if you owe somebody money and fail to pay it and CCJs stay on your record for six to seven years. And when it comes to mortgages with CCJs, when lenders are looking at your credit file, they’ll look at factors including the amount ordered against you in the County Court, how long ago it happened and whether it was ‘fully satisfied’, which means the whole amount has been paid back. Again, each lender will have different rules on whether it would lend in these circumstances so make sure you get expert advice.

Adverse credit mortgages are just like regular mortgages except it’s likely that you’ll be charged a higher interest rate and you may need to put down a larger deposit. But again, this varies greatly by lender so it’s essential you get expert mortgage advice in order to get the right mortgage for your needs.

It’s important to do all you can to show that while you may have had issues in the past, you can manage your money well now. Review your spending and set a budget and save as much money you can each month. Not only will this help towards the costs of buying a house it will also demonstrate to the lender that you can manage your money. 

Also, there are some basic steps you can take to improve your credit rating such as making sure you’re on the electoral role and checking that your credit reports don’t contain any mistakes – if they do, make sure you get them corrected.

For advice on finding the right mortgage, speak to our team of expert advisers.