Getting a mortgage with bad credit

30th January 2018

Mortgages for bad credit

History of bad credit and struggling to get a mortgage, or a poor credit score and worried about your chances of being approved? Getting a mortgage with bad credit is possible and we can help! Find out more about our bad credit mortgage advisory services here.

When you apply for a mortgage, lenders look at a range of different criteria including your credit report. If you have a bad credit score, it is very unlikely that you will be able to get a mortgage from a high street bank, as you are considered a risk. Luckily, we specialise in finding customers the right mortgage at the best price, no matter their credit score.

We work with a number of bad credit mortgage lenders who unlike the high street banks, will assess your application on an individual basis, in order to determine your mortgage affordability.

Our bad credit mortgage specialists can help advise you on all your available options, and find the best possible mortgage deal available to you, to help make your dreams of becoming a homeowner a reality!

We have put together this article as your quick, no-nonsense guide to getting a mortgage with a history of bad credit.

First thing first. If you take away just a handful of learnings from this guide, they should be the following:

1. Remain positive. It is absolutely possible to be accepted for a mortgage with a history of poor credit. Yes, it may be a tad more complicated and a much less guaranteed process than with a strong credit score. But, that should never be a reason to not even look into what mortgage options are available.

2. The high street is not likely the answer. Although there are exceptions, the majority of high street banks can't offer the specialist advisory services that bad credit mortgages require, and are likely to write you off as too much of a risk.

3. Seek professional mortgage advice. The process of getting a mortgage with bad credit can seem quite complicated. But, specialist bad credit mortgage brokers like CLS Money, will do all the stressful leg-work for you. We have helped bad credit mortgage seekers time and again and have access to deals that you would struggle to find anywhere else.

Examples of bad credit situations & how they could impact your eligibility for a mortgage

We understand that the 'adverse credit' bucket can cover a wide range of individual scenarios, and so we endeavour to cover as many of them as possible. In this article, we provide specific guidance on getting a mortgage if you are affected by any of the following:

  • County Court Judgements (CCJs)
  • Defaults
  • Late and missed payments
  • Payday loans
  • Debt management plans
  • Individual Voluntary Arrangements (IVAs)
  • Repossession
  • Bankruptcy

Want to talk about your specific bad credit mortgage needs in more detail? Give our expert mortgage advisors a call on 0203 802 1414 today.

Getting a mortgage with County Court Judgements (CCJs)

Getting a mortgage with CCJs is possible. However, your chances of being accepted and the amount you’ll be able to borrow are dependent on: whether the CCJs are still outstanding, if you have had any other credit issues and how much deposit you have, which we can help advise you on.

Getting a mortgage with a history of defaults

There are a number of mortgage lenders who will consider your application with past or current defaults. If you have had no other credit problems, your chances of getting approved by a high street mortgage lender also vastly increase, so long as you meet the lender’s own individual criteria.

Getting a mortgage with a history of late or missed payments

When you apply for a mortgage, lenders will check your credit report to see how you have managed your money. If you have a history of making late and/or missing payments, lenders will presume that you will also not pay your mortgage on time, and therefore be unwilling to accept your application.

Fortunately, we work with a number of specialist bad credit mortgage lenders who will consider your application. They might charge you a higher rate of interest and/or require a larger deposit. But, we can help ensure that you get the best deal available to you.

Getting a mortgage after a payday loan

Taking out a payday loan can significantly reduce your chances of getting a mortgage. If you have had a payday loan within the past 12 months, mortgage providers will not be prepared to lend to you as they are associated with financial instability. If you took a payday loan out a few years ago, the options you have to get a mortgage will also be restricted. But, we can help you to maximise your chances of being accepted.

Getting a mortgage following a debt management plan

If you are currently on or have previously had a debt management plan, you’re chances of getting a mortgage from a high street lender will be affected. However, there are a number of specialist mortgage lenders who will happily consider your application.

They will look at your: income, expenditure and the extent of your credit issues, in order to determine whether they will lend to you, and we can help you improve your chances by submitting your application to the right lenders.

Getting a mortgage with an Individual Voluntary Arrangement (IVA)

The majority of lenders will not lend to any individuals with an IVA. However, we have access to a number of bad credit mortgage lenders who will be willing to assess your application. You may have to pay a higher rate of interest and/or need a larger deposit. But, we can advise you on all your available options to ensure that you get the best deal possible.

Getting a mortgage following a home repossession

If your home has been repossessed within the past year, you will unfortunately struggle to get a mortgage. However, your chances of being accepted after this time do improve. If you apply for a mortgage in the initial few years following the repossession, you will probably need a fairly large deposit in order to be accepted. But, the longer you leave it, the better your rate and borrowing power will be.

Getting a mortgage after bankruptcy

If you have been made bankrupt in the past 6 years, there are mortgage options available and we can help! The rate of interest you pay may be slightly higher to begin with. But, if you keep up your repayments, your credit rating should improve and enable you to move to a more competitive mortgage deal after a few years.

Other tips on getting a mortgage with bad credit

  • Make sure you know your situation. The more details of your bad credit situation you can understand and have to-hand when starting out on your mortgage-finding journey, the easier and quicker it will be for advisors to work out the best options for you.
  • The sooner you can improve your adverse credit situation, the more likely a mortgage will be possible. Recent bad credit issues are always going to be more of an obstacle, than problems from years ago. But, whatever you can do to improve your credit score as much in advance of applying for a mortgage, the better.

Speak to our expert bad credit mortgage advisors today

We can provide you with free, no obligation advice and quotes based on your own personal bad credit situation. Book a call or fill out our quick contact form today.

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