Bad Credit Mortgages – How to get a Mortgage with Bad Credit?

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Bad Credit Mortgages

Adverse/ poor credit mortgages come in a number of forms. Impaired, sub-prime, non-conforming. Specialist and adverse all mean the same thing, it is simply that different lenders adopt different terms to represent borrowers who have or have had credit problems in the past. This might be defaults, county court judgements (CCJs), previous mortgage or loan arrears, voluntary arrangements (IVA) with creditors or bankruptcy.

If you have a poor credit history then you may find it difficult to obtain a mortgage with many of the main stream mortgage lenders. Each individual mortgage lender has their own lending criteria which means that while some will accept borrowers with some adverse credit others will not.

Borrowers with a poor credit score will also find that the cost of borrowing is also generally higher when compared to someone with a good or excellent credit rating. The good headline rates may still be available to those with light and/or historic Bad Credit. But generally, mainstream Lenders are looking for applicants with some good clean Credit history.

Adverse/ Poor/ Bad credit mortgages are designed to help people with an adverse credit rating get a mortgage. Borrowers who are not able to get a mortgage from a high-street lender may still be able to obtain a mortgage from adverse credit lenders. Some specialist lenders will consider lending to you, even if you have examples of arrears, defaults or even bankruptcy in your past.

Adverse credit mortgage products and lenders have higher interest rates because of the increased risk to the lender.

Whatever your circumstances, simply complete our quick no obligation enquiry form and we will get one of our expert advisers to call you back and help you.

Bad Credit Mortgages – How to get a Mortgage with Bad Credit

Well you can probably cross quite a few high street lenders off your list so it is unlikely that you are going to be able to find a bad credit mortgage on our own. There are specialist lenders that will be sympathetic to past financial problems and who will be able to provide mortgages for bad credit customers. Once you get a mortgage that you can afford to repay you can quickly start building up your credit score again so that you can eventually switch to a more competitively priced product.

The other thing to bear in mind is that if you start applying for a bad credit mortgage on your own and get turned down these refusals can damage your credit even more. This is certainly one case where it is imperative that you go through a mortgage broker or advisor who can evaluate your financial situation and search through hundreds of deals that are not available to the public so that you end up with the best deal possible.

If your bad credit problems happened three or more years ago and you haven’t had any problems since you may be eligible for a mainstream mortgage that comes with better rates. You can check your credit by contacting credit reference agencies such as Experian and Equifax.

Use a Mortgage Broker who is an expert in Bad Credit Mortgages

It is quite easy to think that you can go out there and get the best mortgage deal without help. The problem is that most the Lenders the general public know about, or are able to approach. Aren’t generally the same Lenders that will lend to applicants with Bad Credit. 

Understand your minimum deposit

Your Mortgage Broker will be able to let you know the minimum deposit your require. If the Bad Credit is historic and light. a 5% deposit will likely be do able. More severe adverse Credit may result in you needing a deposit in excess of 15% of the value of the property you want to buy.

Get a copy of your Credit Report and try your best to get in order.

Despite a sizable deposit and a good income, your mortgage application could still be denied because of things that are easily sorted that are showing on your Credit File. Don’t bury your head in the sand. Obtain a full copy of your Credit Report and take it to a Mortgage Broker so they can tell you exactly what you will be eligible for.

Use mortgage advisor to get a deal

When you are offered or presented with the Agreement in Principle, it’s advisable to use if for your own benefit as opposed to that of Estate Agent. When making an offer that isn’t the whole amount it is important to visit your lender so that they can adjust the figure on your certificate. If an agent knows the amount you can afford he might attempt to get a higher offer for the sake of the vendor.

Don’t give up

Never give up when looking for Bad Credit mortgages. There are a lot of lenders who are able to help, offer good deals, have flexible payment plans and have sympathetic lending criteria. 

Who are Bad Credit Mortgages available to?

Bad Credit Mortgages are available to a wide range of Applicants:

  • Bankrupt
  • Having a Default or  County Court Judgement (CCJ) registered against you
  • Those with Secured/Mortgage Arrears
  • Having a previous home repossessed
  • Missing credit card or other unsecured credit payments
  • Not having a bank account
  • Not being on the electoral roll
  • Being self-employed
  • Becoming unemployed
  • Right to buy 

Disadvantages of Bad Credit Mortgages

Mortgages for bad credit customers with Bad Credit Mortgage Lenders usually have higher rates and will require a bigger deposit. This is of course dependent on the severity of the Bad Credit. Different lenders approve different levels of adverse credit, so speak to a mortgage expert who can advise you of the best lender to suit your needs. Fill in our one minute mortgage form and a specialist bad credit mortgage adviser will contact you.

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