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Advice on trying to get a house with bad credit

Manchester Evening News – Best advice for people trying to get a house with bad credit.

With the struggles of the pandemic only just starting to feel like they may be behind us, we’ve now entered what has been called a ‘Cost of Living’ crisis. The current economic climate is personified by rocketing inflation, Bank of England interest rate increases, an unresponsive Government, and salaries that are lagging way behind. It’s no surprise that we expect a greater demand for specialist mortgage advice regarding past credit blips.

This week we’ve been talking in the Manchester Evening News talking about the best advice for people trying to get a house with bad credit. It’s still possible to get accepted for a mortgage if you have a low credit score. As house prices continue to rise and the cost of living increases, getting on the property ladder can seem almost impossible. Thanks to Phoebe Jobling for printing our comments.

Rob Peters, principal of Simple Fast Mortgage based in Altrincham also says that it’s important to try different mortgage lenders.

“Most high street mortgage lenders won’t accept applicants with adverse credit. However, some mortgage lenders are more flexible than others, particularly if the past credit blips were minor, or a long time ago, so it is worth checking if you get a standard mortgage first,” Rob advised.

He also says that to get the best chance of securing a mortgage, you should reassess your monthly budgets.

“Advisors should complete a budget planning exercise with all clients who are taking a regulated mortgage contract, to make sure the new mortgage is both affordable and sustainable,” he said.

“However, it’s a valid practice to do this yourself before speaking with an advisor so you are aware of your incomings and outgoings. The monthly mortgage payments will be higher with a bad credit mortgage when compared to a high street mortgage as a higher interest rate will apply to the mortgage loan.”

Improving your credit score is also much easier than people may think.

“There are a number of steps that potential house buyers can take in order to improve their credit score,” Rob says.

“The first step is awareness; obtain a credit report; many providers offer a free online trial to assist. Pay off any outstanding defaults, or CCJs. Check you are not financially associated with an ex-partner. Sensible use of a credit card which is repaid each month can improve your credit score.”

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