Home mover, low credit score mortgage advice

How to get a mortgage when you have a low credit score

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Home Mover with a Low Credit Score

If you’re worried that your low credit score will affect your chances of securing a mortgage and moving into a new property, don’t panic.

We’re here to reassure you that there are plenty of mortgage lenders who are prepared to take a view on your circumstances, and there are lots of deals on the market that have been specifically tailored for home movers who are still working on improving their financial health. You just need to be upfront about your past issues and financial position, and prove you’re working to put things right – and meet your lender’s other affordability criteria, of course. Your new mortgage could be just around the corner.

Things to consider when moving between properties

A home mover is someone who already has a mortgaged or owned home and is moving into a new property. As a home mover, you can choose to ‘port’ your mortgage with your existing lender or apply for a mortgage with a different provider. Your mortgage broker will be able to advise you on the best option, based on your repayment history and the terms of your current agreement.

As a home mover, you are likely to have some general knowledge when it comes to finding the right mortgage and dealing with brokers. Whilst costs are important to you, you’re focusing on other factors for your move, such as achieving new lifestyle goals; upsizing to meet the demands of your growing family, or changing location due to work or family commitments.

You’re in a much stronger position than a first-time buyer because you have evidence of your ability to pay your mortgage repayments in full and on time, every month. This will put you in a favourable position when it comes to getting a good interest rate. You’re also likely to have built up some equity in your existing property, meaning you’ll be entering into a new agreement with a better loan-to-value (LTV) than before.

What is your loan to value (LTV)?

To work out your LTV, input your figures below.

One of the most common problems that home movers experience is being stuck in a chain. This is the term used for a sequence of linked home purchases who are reliant on each other for the preceding and succeeding purchases; for example, those buying your house are reliant on you completing on your new home in order to move into your old one.

It’s important to stay in contact with your solicitor throughout the moving process to ensure everyone is kept up to date with potential move dates and any delays are communicated up and down the chain.

How will having a low credit record affect your chances of getting a mortgage?

If you borrow money from a lender and have difficulty paying it back on time, this will have a negative impact on your credit score and may make it much harder to borrow again in future. In turn, having a low credit score means that the information held on your credit report will be viewed negatively by lenders. This will affect your chances of securing any sort of finance, including a mortgage.

Other factors that can adversely impact your credit rating include:

  • County Court Judgements (CCJs)
  • Bankruptcy
  • Defaults on your credit file
  • Too many hard searches on your credit file
  • An Individual Voluntary Arrangement (IVA), Debt Management Plan (DMP) or Debt Relief Order (DRO)

Whilst having bad credit can make it more difficult to get a mortgage with some of the more well-known banks and high-street lenders, different companies have different eligibility criteria, so it may still be possible to find a lender that will accept your mortgage application.

Why use a mortgage broker?

For the best chance of success, contact our mortgage brokers today. Our team has plenty of experience in finding mortgage deals for customers with a poor credit history – and our straightforward, communicative, and impressively flexible way of working will ensure your mortgage process runs as quickly and smoothly as it can.

It all starts with a conversation. Contact us online or by phone to get yourself booked in for a free, no-obligation consultation with one of our brokers. They will be able to search the whole of the market for suitable low credit mortgage deals; advise you on what you’ll need to do to put together a winning application, and liaise with the mortgage lender on your behalf to get everything sorted prior to completion.

CLS Money is here for every eventuality

As expert mortgage brokers, we're not solely here to help those with a poor credit history or adverse credit issues; we find the mortgage lenders who are ideally placed to finance people just like you. Whether that's providing bad credit mortgages or more traditional options to get you a better deal than your current mortgage, we've got everything covered.

Operating as a leading mortgage broker, we work with the most unusual applications, locating the specialist lenders who are happy to handle the loans the high street lenders refuse to touch.

  • Missed payments mortgages
  • Adverse credit mortgages
  • Competitive options to your existing mortgage
  • Lowering monthly mortgage payments
  • Mortgages with CCJs (County Court Judgements)
  • Mortgages with DMPs (Debt Management Plans)
  • Mortgages for those with credit card debts
  • Fixed rate mortgages
  • Discount mortgage options
  • Commercial mortgages
  • Buy to Let mortgages

Whatever your situation, your personal mortgage advisor will talk you through each step of the process, helping you to make the move into your dream house or get you on the property ladder. Whatever you need from your specialist mortgage broker, CLS has the answers and the support you're looking for.

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Gemma May

Mortgage Advisor

Gemma May

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