Needing a bad credit mortgage? Got a poor credit history with adverse credit information such as defaults, CCJs or even Bankruptcy on your credit history file?
Those with a poor credit score, the self-employed with variable cashflow and the young are often particularly hard hit by lenders’ rigid rules, seeing renting as their only alternative to buying a property when their attempts to get a mortgage fail due to poor credit history.
Often called a bad credit mortgage, what they really need is a mortgage lender that is willing to listen to the circumstances and accept that the applicant is now able to repay such a mortgage. We’ve recently created a mortgage package designed specifically for those circumstances where you’re looking for a mortgage but have some defaults, CCJs or even bankruptcy & repossession in your history.
A poor credit history is one of the main reasons a mortgage application is rejected as one of the first things a lender does to to check the applicant’s credit file with credit reference agencies such as Experian & Equifax.
The lenders use the information held at Credit Reference Agencies (which show what accounts you have, any missed payments, how much of your credit card limit you’ve used along with other information such as how long you’ve been on the Electoral Roll) to judge the risk of lending to you.
All lenders have different criteria so never assume we can’t help, some lenders specialise in lending to people with some adverse credit information. Naturally their rates reflect any additional risk but if you can show that your financial circumstances are now good enough that you can repay the loan then it’s our job to connect you with these specialist mortgage lenders.
Applying for a bad credit mortgage
Top Tip: After a rejected application, a record of the search is visible on the credit file, this becomes a vicious circle as too many recent searches are seen as a warning sign by many lenders – that’s another reason why it makes sense to come to a Broker that knows the marketplace and won’t do needless searches against your name.
Even in the current financial climate, our close links & experience within the mortgage industry enables us to source mortgage facilities for people who have had some historical bad credit. The lenders take the view that some people are generally good with their finances but have had one or two problems with late payments – or have made a stable recovery from bankruptcy – and fall foul of the automated procedures at the High Street Mortgage Lenders. These specialised lenders will judge an application on its individual merits.
Once we’ve reviewed your Factfind, it shouldn’t take much – if at all – longer to process your mortgage application that it does for any other. Occasionally, the lender will ask to see some additional supporting information but these can be emailed over to us using our secure system.
When we’ve been successful in obtaining mortgages for clients who have historical poor credit, and providing all future commitments are met going forward, we find often this improves the client’s credit file and as a consequence may well increase the chances of obtaining a High Street mortgage at a future time. However as always, we can’t guarantee that that would be the case as market conditions and lenders attitudes to market conditions change so frequently.
We can obtain a Decision In Principle within hours for you.
Complete our full Factfind document [download]
We will then match your needs to the most appropriate lender & contact you with details of rates and fees once we have a Yes! Decision in Principle from a lender.
Decades of Mortgage Broking Experience to get you the mortgage you deserve
Call us today on 01704 808286 or complete our Factfind Application for a prompt response
Westminster Chambers • 106 Lord St Southport • Merseyside PR8 1LF
You may be required to pay a broking fee. The fee will depend on your circumstances, an indication is 2.5% of the loan subject to a minimum of £2300.
The overall cost for comparison is 4.6% APR but the actual rate available will depend upon your circumstances. Please ask for a personalised illustration.
Think carefully about securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.