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Bad Credit Mortgage - Mortgages For People With Poor Credit

A history of adverse credit doesn’t have to stop you from getting a mortgage. We help people like you to get a bad credit mortgage with lenders who specialise in helping those with a poor credit history.

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Getting a mortgage when you have a poor credit history can feel like an uphill struggle at the best of times. Adverse credit is something that happens to a lot of people and it’s frustrating when it continues to be an issue for you. If this is the situation you find yourself in, there are options available for you.

Some lenders provide adverse credit mortgages but the availability depends on how severe your credit issues are. If you have concerns about getting a mortgage, you should speak to one of our experienced mortgage advisors. We’ll use our knowledge and expertise to help you find the mortgage which is suitable for you. Call us on 0333 090 2025 to find out more.

Do you have questions about getting a mortgage with adverse credit? Take a look below at our frequently asked questions and their answers.

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What is a Bad Credit Mortgage?

A bad credit mortgage (aka an adverse credit mortgage or impaired credit mortgage) is for borrowers with credit issues. Lenders report your credit information to credit reporting agencies with information such as the types of debt, the lender, and your record of making repayments. If you miss payments this can lead to adverse credit. The severity of your credit history will have some impact on how much you can borrow and which lenders will accept you, but our mortgage advisors can advise you further when you speak to us.

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Can I Get a Mortgage Without a Credit Check?

In order to get a mortgage, you need to undergo a credit check. Lenders routinely carry out credit searches as part of their checks so you are unable to opt-out. However, some mortgage lenders will carry out a credit check whilst others will rely on credit scoring. A credit check will look to see exactly what type of adverse credit has occurred, but a credit score only requires that you meet a certain level now. Therefore, it can be advantageous to select the correct mortgage lender for your situation, and this is where we can help.

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What Types of Credit Issues do You Help With?

We help borrowers who have a record of late payments, a low credit rating, no credit history, missed mortgage payments, exceeded credit limits and overdrafts, defaults, CCJs (County Court Judgements), IVAs (Individual Voluntary Arrangements), Even, Debt Management Plans, a history of bankruptcy or property repossession. We’re experts at helping people to find the right mortgage. Contact Us to find out how we can help you.

Worrying about your credit report? There are things you can do to improve your chances of getting a mortgage. You can check you’re registered on the electoral roll, ensure any errors are corrected on your credit report, reduce or pay off the debt, cancel any unused credit and make payments within deadlines. You can also get free advice from Citizens Advice.

 

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What Are Credit Impaired Mortgage Rates?

Each lender has different rules and the rate you’ll be offered will depend on how severe your credit history is. There are specialist lenders who offer mortgages to those with bad credit and we can discuss what rates are available when you contact us. Rates and fees can sometimes be higher, but this is not always the case. Contact Us. to find out more.

Can I Get a Mortgage With Bad Credit if my Partner Has Good Credit?

Applying in joint names can help improve your chances of getting a mortgage if one of you has adverse credit. Firstly, there are normally two incomes to support the mortgage which increases the likelihood that mortgage payments will be repaid. Secondly, if your partner has a good credit score this helps your application and your chances of getting a mortgage.

Will my Credit History Stop me Getting a Mortgage?

Lenders use your credit rating to determine how reliable you are at repaying your commitments. It’s based on how you’ve conducted your finances including how much credit you’ve taken out and whether you’ve made all your repayments on time. Lenders use this information to help them decide whether to lend to you and how much to lend to you.

If you’ve missed payments, have adverse credit or have a lot of debt, this is reflected in your credit rating. Consequently, a high street mortgage lender might be unwilling to provide you with a mortgage, but a specialist mortgage lender might. You can view your credit rating and history on credit reporting agency websites such as Check My File.

How Long After Adverse Credit Can You Get a Mortgage?

The time you should wait before you apply for a mortgage depends on the severity of your credit issues. One missed payment on a credit card, for example, is less of a concern to a lender than a missed payment on a mortgage. If you can demonstrate the conduct was a one-off and no other issues have occurred since then this will help. For more guidance please speak to one of our experienced mortgage brokers on 0333 090 2025.

Can I Get a Poor Credit Mortgage With a Guarantor?

Guarantor mortgages are no longer available. They have been replaced by joint borrower sole proprietor (JBSP) mortgages. These are mortgages where a close friend or family member is added to your mortgage application so that the lender takes their income into consideration to help with mortgage affordability. A joint borrower sole proprietor mortgage increases how much you can borrow, but all applicants will be liable for the mortgage repayments. Whilst this can potentially assist with getting a higher mortgage amount, or even avoiding unnecessary stamp duty, it will not help with bad credit. This is because all mortgage borrowers will need to pass a credit check to get a JBSP Mortgage. If you have a poor credit score there could be other options available. To find out more please call us on 0333 090 2025.

What Size Deposit do I Need For a Credit Impaired Mortgage?

One way to improve your chances of getting a mortgage is by putting down a large deposit.  The bigger the deposit, the more mortgage products there are available to you. This makes the rates more competitive because it reduces the risk to the lender.  Most lenders will require a minimum of a 10% deposit, but the more you can save the better your chances. A saved deposit might also help your application (as opposed to receiving a gifted deposit) as it shows that you’re used to saving and budgeting regularly. This helps to reassure your lender that you can afford the repayments.

Can I Get a Bad Credit Mortgage With Shared Ownership or Right to Buy?

If you want to purchase a property using the Right to Buy (RTB) or Shared Ownership schemes but have bad credit, it may still be possible to get a mortgage. Lenders take into consideration factors such as the amount of debt you have compared to your income, how many payments you’ve missed, the reason for the incidence, and how long ago the bad credit was.  The severity of your bad credit will determine your likelihood of getting a mortgage, but there are often options available.

There’s more available about the Government’s affordable housing schemes here. You can also call us on 0333 090 2025 to speak to one of our experienced brokers about your application.

I Have a History of Repossession / Bankruptcy, Can I Get a Mortgage?

When you’ve been made bankrupt or had a property repossessed, it can feel like the end of the world. You no longer have the same financial responsibilities you once had but you might worry about the future. If your situation has improved, enough time has passed and you feel ready to purchase a property but need a mortgage, there are some options. 

Your ability to get a mortgage depends on several factors including how long ago since the bankruptcy or repossession, the reasons for it, and in the case of bankruptcy, if and when it was discharged. Lenders will also assess the deposit size, your recent credit history and your income. Lenders who will consider those who have undergone bankruptcy or repossession tend to be more specialist – Contact Us to speak to one of our experienced advisors and find out more.

Can I do Debt Consolidation With a Poor Credit History?

When you are overwhelmed with debt and struggling to meet payments, you might be considering taking out a remortgage, second charge mortgage or secured loan to consolidate your debt. This has both pros and cons. By consolidating your debt you reduce the payments, the interest, reduce the pressure, and get more time to repay. On the other hand, the debt is still there, and now it’s secured against your home so if you default you risk repossession. It’s not a decision to take lightly and if your debts are overwhelming you, we would recommend speaking to a charity like StepChange to get some advice. 

If you do want to consider this, there are options available that could help you. Contact one of our brokers on 0333 090 2025 to find out more.

How Much Can I Borrow On a Credit Impaired Mortgage?

How much you can borrow will vary depending on your credit history, the severity of any issues, when they occurred, how long they lasted and your current outstanding debts. Lenders will also assess your application on the basis of the size of your deposit, your income and how long you’ve been in your job. To find out how much you can borrow, please contact us. When you apply, we’ll also confirm what documents you will need to provide such as payslips, bank statements, and proof of identification. Ready to apply? Get Started

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