How to Get a Mortgage with Bad Credit but a Good Income
Most banks will use a credit scoring system to work out if they will approve a mortgage and usually traditional lenders will not provide a mortgage to borrowers with a bad credit rating.
Even in the event that the borrower has a good income and can hypothetically afford the mortgage repayments, a high street lender will not grant them a mortgage if they have a negative credit rating.
At Fair Mortgages, we work with lenders who review each application on a case by case basis. We can arrange mortgages with flexible lenders that will not solely look at your credit rating, but also consider your ability to afford mortgage repayments.
Therefore, if you have a less than perfect credit rating, it may still be possible for you to secure a mortgage.
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Whether you have a bad credit rating or not, it is important to do as much research as possible to find the mortgage that suits you.
Our Bad Credit Mortgage Service
At Fair Mortgages, our independent mortgage broker service offers:
- Access to the whole market – we can compare most UK lenders who will deal with bad credit ratings.
- Credit repair mortgages – we can source mortgages that will provide the money you need and help you rebuild your credit rating.
- Finance within a short period of time – contact us today and we can secure the funding you need swiftly.
- Financial solutions for raising additional funding on top of an existing mortgage – If you have an existing mortgage that does not cater for your needs, we can help.
Mortgages from Private Lenders
A mortgage from a private lender is similar to one from a traditional lender. You will be able to borrow up to a certain amount and repay it in monthly instalments.
The deposit required by a private lender is likely to be higher than one needed for a traditional lender. Typically, you will need a deposit between 25% and 30% of the property value.
Before a private lender grants a mortgage, they will usually require:
- Proof of income: A number of pay slips will be requested
- Bank statements: You will need to provide a certain amount of bank statements to prove you can afford the monthly repayments.
- Three years accounts: If you are self-employed, private lenders will request at least three years’ worth of accounts.
How to Check My Credit Rating
If you want to find out your credit rating, you can always get a copy of your report from a credit rating agency such as Experian, Equifax and CallCredit.
How to get a Mortgage from a Private Lender
If you have a bad credit rating but need a mortgage, call our mortgage team on 0117 403 4474 to discuss your situation or use our Callback form.