Securing a mortgage with bad credit might seem like a daunting task, but rest assured, there are still options available to make your dream of homeownership a reality. While a less-than-perfect credit history can present challenges, lenders today understand that financial setbacks can happen to anyone.
With careful planning and the right approach, it is possible to obtain a mortgage even with bad credit. By exploring specialised mortgage products, improving your creditworthiness, and working with knowledgeable professionals such as the Mortgage Advice Center, you can take steps towards finding a lender who understands your unique circumstances and is willing to help you work towards a better future. Don’t let past credit difficulties discourage you; there are pathways to homeownership that can help you turn the page and embark on a new chapter in your life.
How do I apply for a mortgage with bad credit?
Applying for a bad credit mortgage would be the same as applying for a normal mortgage. We would approach and recommend the lenders that we know would be happy with your financial situation so that we do not waste any time or credit checks. Our brokers are very experienced so they will know what is achievable and what isn’t.
The mortgage process would be as follows:
- Contact us : We’re extremely experienced in Bad Credit Mortgages and having a chat with one of our advisors will help you understand the process. On our first call, we will go through all your circumstances so we know what we’re dealing with. As we work with the whole of the market, we’ll know if their is a mortgage lender that will be prepared to lend and help you to apply.
- We have access to all the banks, building societies and specialist lenders. The initial chat will allow you to know what the broker feels is achievable, and they will be able to answer any questions.
- We will ask you for the required documentation to help assess the potential application. Usually this will be:
- Copy of your credit report
- Proof of income
- Personal ID and address ID
- 3 months bank statements
Once we’ve assessed the documentation, we can perform the research to find you a suitable lender.
On confirmation that you are happy to proceed, the broker will run through the application with you and will apply. We will liaise with the mortgage lender and you to satisfy any document requirements and once the valuation has been done and the lenders requirements have been met. the mortgage lender will produce the mortgage offer.
Can I get a mortgage with a satisfied CCJ?
Yes, you are able to get a mortgage with a satisfied CCJ. Our brokers would have a look through your credit report and ask you details of the CCJ. Different lenders have varying criteria with regards to satisfied and unsatisfied CCJs. The lenders that we would use would depend on the amount of the CCJ and when it was registered. Our brokers experience will make sure you get the best mortgage interest rate if you have a CCJ as it may get declined with some high street banks and not others, using our brokers will really add value to your mortgage search as they will know which lenders to approach.
Adverse Credit Lenders
There are a lot of specialist lenders in the mortgage market who offer mortgages to people which have had adverse/ bad credit.
Our first port of call would be to look through your credit file as it may be that if your adverse credit was minor or quite historic, we may try to apply with a regular high street lender. Some high street lenders are more lenient than others when it comes to adverse credit and sometimes it’s the case that you will pass a high street lenders credit score and secure a good rate. If the mortgage isn’t agreed or we feel it won’t be agreed by a high street lender then we will recommend specialist lenders. We would pre-qualify the mortgage application before we apply to make sure that your case fits with their criteria and correspond with you to make sure that you would have all of the documentation that the lender would require.
What is Adverse Credit ?
Adverse credit is when you have missed a payment on a financial commitment. Adverse credit is shown on your credit report and is usually shown as a status 1-6 missed payment, a CCJ , default, debt management , IVA or Bankruptcy.
The type of adverse credit that is allowed will depend on the type of mortgage product that you are looking for and also the criteria for each specific lender.
Different lenders have different ways of assessing mortgage applications, Some will use an automated credit score system which will take into account adverse credit whilst some lenders will look at your credit file manually and make a judgement on the information in front of them. Mortgage lenders also have specific adverse criteria that brokers can access. This allows our brokers to compare your credit report with the lenders criteria to see if it is worth us applying with them or on not.
What is the Best Mortgage for Adverse Credit?
Our advisors will take into account your circumstances when recommending the best mortgage product to you . For example if we feel that due to your circumstances you would have to pay a higher rate due to some adverse credit it maybe that we recommend taking out a 2 year deal rather than a 5 year deal if we feel that in 2 years time we could get you a better deal because your adverse would be more historic.
Our brokers advice will be of the uttermost importance in not only getting you the best rate but also giving you advise on what is likely to happen in the future in regards to your credit profile and your ability to get a mortgage. We take a holistic approach which enables us to ensure you get the best mortgage for adverse credit.
We will always try and get you the best rate and will essentially “ski downhill” ticking off the cheapest recommendations until we find the one that suits you.