First Time Bad Credit Mortgage
  • Missed or late payments
  • Debt management plan
  • Discharged bankruptcy
  • Defaults or CCJ’s
  • IVA’s

First-time Buyer Mortgages with Bad Credit

First Time Buyers with Bad Credit

Getting the keys to your own front door is a fantastic feeling at any time; getting them for the first time should be a time of great excitement and celebration. Of course, before you get to put the key in the door, there are several obstacles to overcome; not least the fact that you have to arrange a mortgage. So what do you need to do to make that happen? And what additional things might you have to do if you have a poor or non-existent credit rating?

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Can First Time buyers get a mortgage with bad credit?

Bad credit mortgages are indeed available to first time buyers.  The situation of the applicant in this regard whether they be a first-time buyer or a homeowner is largely irrelevant with the decision to lend mostly being made depending on the level of bad credit the applicant has and also the amount of deposit or equity they have.  Many other factors however are taken into consideration when a lender assesses an applicant and therefore it is advisable to speak to a specialist bad credit mortgage broker who understands the market to see what your possible options may be.

Bad credit mortgages for first time buyers

Being a first time buyer can be an exciting time but also appear daunting where mortgages are concerned.  This can be compounded further when you have a history of bad credit that may affect your chances of being approved.  Although the fact you are a first time buyer will be taken into consideration, bad credit mortgages are still available.  The lender will make an assessment based on your overall situation including the specifics of your credit history and our advisers with their expert knowledge in this field will be best placed to source the right lender for needs.

Can a first time buyer get a mortgage with a low credit score?

Having a low credit score can be attributed to many things.  It could be that you have a history of bad credit that is affecting your rating or possibly for some first time buyers this could be down to the fact that you have little or no credit history.  The reason for the low credit score is perhaps the more critical element of you being approved for your mortgage however, being a first time buyer should not be seen as a negative point as this alone plays a very insignificant, if no part at all, in the lenders assessment.  All lenders use their own individual ways of making an assessment, and where some may use a very system led credit scoring process, others will use a more human approach making a manual credit check rather than relying on a computer generated credit score.

First Time Mortgages for Bad Credit

We pride ourselves on offering impartial advice on the most competitive first time mortgages for bad credit customers, and we will allow you your own personal adviser throughout the duration of the application process.

We recognise that for inexperienced first time buyers, this can be an important and extremely useful commodity.

We are also able to advise first time buyers on repairing their credit score, if it should have a negative effect on their ability to acquire a mortgage and help with its continued improvement as applicants secure their mortgage.

Our expert mortgage brokers can discuss your circumstances and advise you on the mortgages to meet your individual needs – get in touch today.

HOW DO FIRST TIME BUYERS OBTAIN A MORTGAGE WITH BAD CREDIT?

As a first-time buyer with a bad credit record – either through an adverse credit event, or due to no credit history at all – you might expect to find a few more obstacles than usual placed in your path to getting a mortgage. Mainstream lenders and those on the high street might be reluctant to extend an offer of a mortgage to anyone who does not fit their ideal credit profile, but there are a large number of ‘bad credit mortgage’ lenders who could be willing to accept your application.

These specialist lenders offer mortgages to people with all kinds of bad credit issues on their records all the time, and just because you are a first-time buyer, this does not make your case any different to the others. They will take an overall view of your circumstances – your financial history, your current levels of income and outgoings, the nature and age of any bad credit events on your records, and what you have done to improve and maintain a healthy credit score more recently.

The best way for a first-time buyer to get a mortgage with a bad credit record is to talk over their situation with an expert mortgage adviser – one who will be able to recommend exactly the right lender and product that will suit their needs. Specialist lenders do not generally offer their services directly to the public, and so you will need to work through a trusted intermediary – such as ourselves at Just Mortgage Brokers – in order to submit your application and give it the best chance of success.

SHOULD I APPROACH A SPECIALIST MORTGAGE LENDER IF I HAVE BAD CREDIT?

If you have a bad credit issue on your financial records and want to get a mortgage in the fastest, easiest and cheapest way possible, then you might think the best thing to do is to try approaching specialist mortgage lenders yourself. However, while going direct to source can be the best course of action for a number of purchases, when it comes to finding a mortgage when you have adverse credit events on your files, there are a number of reasons why you will be best-served by talking to a specialist mortgage broker in order to get the right deal.

The first and most basic reason for not approaching a specialist lender yourself is that they simply won’t deal directly with the general public. Due to the specialist nature of their business, they are not able to field all kinds of queries and questions from people who are unfamiliar with their offerings, and who should really take advice on their situation before applying for a mortgage with bad credit. The vast majority of specialist bad credit lenders will only accept applications made via a trusted intermediary – therefore ensuring all parties know what they are getting into, and that the applicant knows that their product is the right one for them.

Secondly, applying directly to any mortgage provider yourself when you have a bad credit record, especially one of the specialist lenders, will increase the chances of your application being turned down, which will in turn only further harm your credit report. You may spend time looking for a lender that appears to be right for you, only to find it isn’t the case, and every time you apply for a loan and it gets declined, a note is made. Working with a specialist mortgage broker to identify and apply for the right mortgage to meet your needs will mean your application is as strong as it can possibly be, and stand the greatest chance of success.

Finally, while any particular lender will only be interested in selling their own products, a mortgage adviser is able to give you sound advice on a huge range of mortgages and lenders. Do you know which lenders you might not have heard about, or missed in your search?

Feel free to get in touch with our team at Just Mortgage Brokers to get a clear overarching view of your situation and honest guidance on your options for a mortgage with bad credit. With our deep knowledge of the network of specialist ‘bad credit’ lenders and access to over 12,000 mortgage products, we will be able to find rates you won’t be able to find yourself, often on an exclusive basis thanks to our relationships in the industry.

HOW TO I CHECK MY CREDIT SCORE?

You may have noticed a number of advertisements on TV and radio about methods and services to easily check your own credit score for free, and without harming your credit rating. The latter point is a little unnecessary – checking your own credit record has never caused any issues with your credit rating. It’s never been easier to check your own credit score than it is now, but just be careful if you use a free service not to be persuaded into a paid subscription that you don’t really need.

The conventional way to check your credit score is to contact the three main credit agencies in the UK and ask for a report. The agencies are Experian, Equifax and TransUnion (formerly Callcredit), and they will have instructions on their website for the simple procedure to follow. They used to charge a small fee (around £2) for this, but since GDPR regulation came into place in 2018, it’s now free. The service also used to be mail-only, but is now performed online to make it quick, easy, low-cost and sustainable.

It’s advisable to check with all three if you can, because each of the agencies calculates your overall credit score in a slightly different way, and it is also possible that one or more of the agencies may or may not have the same information as the others – in which case you should take steps to ensure that the information held on file by all of them is accurate and up-to-date. The statutory report will contain your personal details, information on financial links to other people, your credit accounts, any missed payments or defaults, any searches made against your name in the last year and whether you are on the electoral roll (if you’re not, then register as soon as possible).

It’s also possible to use CheckMyFile to check all three at once online. They operate a free trial period, so remember to cancel the subscription in time if you don’t want to continue with their paid service.

Once you’ve checked your credit rating and are satisfied it’s all correct, then you can take any steps needed to remedy any bad credit notes on your file – either by paying off debts, cancelling unused store cards, taking out a credit card to use responsibly for everyday spending, and staying up-to-date on all your ongoing payments.