Bad credit mortgage review
Most high street banks use a credit scoring system to work out if they will give you a mortgage. If you don't get a high enough score, you won't get a mortgage and in many cases you won't be told why.
At Fair Mortgages, we work with lenders who take into account your personal circumstances as well as you credit history when making their decision. We believe this is a much fairer and more transparent approach.
If you have had previous bad credit issues, then this may affect your ability to get a mortgage. Most high street lenders will not offer you a mortgage if you have a bad credit history. The good news is that there are solutions available on the market, depending on your circumstances.
Causes of bad credit
There are various factors which can affect your credit score, and make it harder for you to access future borrowing such as a mortgage.
Some of the key things which can negatively affect your credit history include:
- Late payment or non-payment on previous loans or credit cards
- Having a County Court Judgement (CCJ) against you
- Entering into an Individual Voluntary Arrangement (IVA)
- Being declared bankrupt
It’s also worth noting that if you have never borrowed money or had a credit card before, you will likely have little or no credit history. This means you may well be turned down by some lenders for some products, as they will be unable to assess how good or not you might be at repaying debt.
Compare bad credit mortgage deals
Our independent mortgage broker service offers:
- Whole of market service - we can compare most UK lenders who will deal with bad credit including CCJs, missed mortgage payments, previous defaults and IVAs
- Access to credit repair mortgage deals not available on the high street
- Fast turnaround - speak to us today if you need to move quickly
- Looking to raise additional finance on top of your existing mortgage or buy to let mortgage? - we have access to a range of finance solutions
To investigate your mortgage options if you have had previous bad credit issues, then call our mortgage team on 0117 313 7780 or fill in our call back form.
If your credit history is less than perfect, don’t despair when it comes to finding a mortgage - there are still mortgage lenders who specialise in offering mortgage deals for those with poor credit scores.
Choosing a mortgage lender for bad credit
There are various levels of bad credit mortgages available, depending on the severity of your poor credit score and the reasons for your credit rating. These deals range from mortgages for those with a borrower that might have missed one or two mortgage payments in the past, mortgages for people who have County Court Judgements on their credit record for non-payment of bills, all the way to mortgages for people who have declared bankruptcy in the past or had a property repossessed.
If you have an unconventional financial history or a bad credit record, it can sometimes be beneficial to seek out a mortgage lender who specialises in mortgages for bad credit. This can increase your chances of getting the mortgage you need, as specialist advisers will be used to dealing with potential borrowers in a similar situation to your own.
For example, they may opt to consider applications on a case by case basis, rather than the computerised screening process used by some mortgage lenders that will often automatically reject people with poor credit scores.
Tips for maximising your chances of getting a mortgage if you have bad credit
- Ensure that you can afford it – this is an important point for any potential mortgage borrower, poor credit or not. If you have had difficulty keeping up with mortgage repayments in the past, it can be useful to gather as much evidence as possible to demonstrate to the lender that you can afford the repayments.
- Be prepared to pay more interest – having bad credit is likely to exclude you from many of the best value mortgage deals on the market, because lenders will consider you to be a higher risk borrower than someone who has a clean credit record.
To compare top mortgage interest rates and find the best mortgage deals for you, call our mortgage team on 0117 313 7780 to discuss your situation or use our callback form.
Your credit score makes a difference. When you apply for a mortgage we will need to know what is on your credit report to help you get the right mortgage deal. See below for a service where you can obtain your personal credit report today.