BAD CREDIT MORTGAGES

If you have bad credit and are looking to secure a mortgage, you may have a few concerns. You have probably heard that getting a mortgage with bad credit is difficult, if not impossible. The truth, however, is that things have changed. Our Bad Credit Mortgages Guide explores your options. 

With a growing number of people experiencing some form of credit issues, mortgage lenders have become a little more flexible in their approach. In our guide, we’re going to take a look at what bad credit mortgages involve and consider who may be eligible.

What you'll find in this guide

What is bad credit?

Lenders will look to your credit report for reassurances that you can honour your commitments. In simple terms, they want to see that you can pay back whatever you borrow. A history of late payments or defaults will cause lenders concern. While a credit score is important, these differ from one agency to another. What really matters is how you manage your commitments so that lenders can trust you.

What is a bad credit mortgage?

A bad credit mortgage is just what the name suggests it is – it is a mortgage for people with bad credit. A bad credit mortgage opens up the possibility of securing a mortgage even if your credit file is less than squeaky clean. There are certain lenders who may overlook the occasional late payment or the odd blip here and there. In return, they may expect a larger deposit from you and you may see yourself paying a slightly higher rate of interest

Can I remortgage with bad credit?

If you have bad credit, there are still lenders who will allow you to remortgage. A poor credit rating may see you paying a higher level of interest or having options that are slightly limited, but it is still perfectly possible. By talking with us, we can run you through all of your options.

What about CCJs or Defaults?

Yes, you can still get a mortgage with CCJs & defaults! it’ll be a little more tricky than if you had a ‘perfect’ credit history but its still possible! you’ll need to apply to a specialist lender who deals specifically with people who’ve had credit issues.  

CCJs and defaults stay on your credit report for six years and will affect your overall ‘credit score’ but the most important thing will be the dates they were registered, whether they have been paid off & the original amount they were for.

specialist mortgage broker like mainly mortgages can find out your options.

How can I increase my chances of securing a bad credit mortgages?

If you are looking at a bad credit mortgage, there are steps that you can take to increase your chances of being accepted. These include:

 

  • Getting a copy of your credit file & Checking it through to make sure the information is accurate
  • Take steps to repair your credit
  • Raise the biggest deposit possible
  • Don’t make multiple credit applications over a short space of time

The most useful step that you can take is to get in touch with us at Mainly Mortgages. We are the experts when it comes to assisting those with bad credit to secure a mortgage.

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