Sometimes, life throws us curveballs, and our finances suffer. Lenders understand this, which is why more and more mortgage providers are relaxing their criteria to accommodate any first-time buyer who has missed or late payments on their credit report.
To make sure your application gets over the line, however, you’ll need to take the advice of a highly experienced mortgage broker who can help you source the right deals and approach companies that are more likely to offer you a loan.
Things to consider as a first-time buyer
Lenders define a first-time buyer as someone purchasing a property who has never owned a home previously.
If you’re a first-time buyer, you might not fully understand the mortgage process, so it can be really helpful to speak to an expert to talk you through it. He or she will explain all the key terminology and help you work out how much your monthly repayments will be, as well as how much the mortgage will cost you over the course of your full term.
One key thing to ensure from the start is that you have all the right documents to hand. Any errors, inconsistencies or omissions from your paperwork could be a red flag to your lender and could put you in a poor position when it comes to being accepted for a mortgage.
As a first time buyer, you might not have a strong credit history. Chances are you’ve never had to pay back this kind of debt before. From the lender’s perspective, taking you on as a mortgage customer is a bit of a gamble because they have no examples of your reliability as a debtor.
This is why it’s so important to use a mortgage broker when looking to apply for a first-time buyer mortgage. Their expertise will help you meet lender criteria, which in turn will give you a better chance of being accepted for a mortgage and securing your dream home.
How will missed or late payments affect your chances of getting a mortgage?
Mortgage lenders consider a late payment as a payment that was not settled within the deadline given to you by your creditor but was paid off within a month after this cut-off date.
Missed payments, on the other hand, are those which were not paid at all.
Missed or late payments on any existing credit agreements can have a big impact on your credit score. In fact, they can often make it very difficult for you to be accepted for a mortgage, particularly if you are trying to buy a property for the first time.
Late and missed payments will stay on your credit report for six years, so any lender reviewing your credit history within this period of time will need to bear them in mind when deciding whether or not to lend to you.
There are different levels of severity for missed and late payments; missed and late utility bills have the least impact on your credit score, while missed and late mortgage payments are much more serious. But different lenders will have different rules and criteria that govern how they assess the effect these will have on your application.
You're less likely to be approved by the high street lenders than you are a specialist lender; that's why, here at CLS, we offer mortgage advice that leads to mortgage approval whatever your situation.
If you know you have missed or late payments to your name, you should consider working with a specialist mortgage broker. They will be able to introduce you to specialist lenders who are prepared to take a view on your finances and offer the best possible rates given your circumstances.
Why use a mortgage broker?
Whatever your situation, and regardless of the challenges you’re facing, we’re confident we can help you find and secure a mortgage that works for you.
The straight-talking brokers here at CLS Money provide expert advice to customers with bad credit who want to enter the property market. Offering flexible appointments, free quotes and ongoing guidance to all of our mortgage customers, we truly do deliver the most comprehensive support to first time buyers who are worried that their credit history will prevent them from owning their own home. Contact us today to go through your options and see what products are available!
Mortgage advice for unusual or unique situations
Anyone trying to get on the property ladder with a poor credit rating due to missed payments could have all kinds of problems trying to borrow money from the usual lenders. CLS makes getting a mortgage so much easier because we know which lenders will overlook any late or missed payment issues. However, we're not just here to help first-time buyers or those with credit issues. We're here for everyone.
If you're finding applying for a mortgage hard work, it's time to talk to the specialist mortgage brokers. We'll help you get a mortgage whatever your situation, so why not give us a call? Whether you've suffered adverse credit, still owe money, failed to pay your phone bills or struggling with other financial difficulties, we can find the right lender for you.
Mortgage assistance for anyone with a poor credit report
Missed payment issues on utility bills or other credit lines
Finding an appropriate mortgage lender for every unique situation