Bad Credit Mortgages

Here at Just Mortgage Brokers we take pride in helping our clients to find the very best deals when they require a bad credit mortgage. Our aim is to make it much easier for you to find an impaired or adverse credit mortgage regardless of your poor credit score.

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We understand that it can be difficult to find a lender willing to provide a mortgage with a history of bad credit, but with help from our specialist advisers, you can get access to a potential mortgage with minimum fuss.

Getting a Mortgage With Bad Credit

Whether you are a first time buyer, or a homeowner who is looking to move or remortgage, we will search the whole of the market to ensure you get the very best mortgage for your circumstances. We can also assist those looking for a bad credit secured loan or investors requiring a buy to let mortgage.  Our team of dedicated professionals will always be on hand with their impartial, expert advice to help you find the right mortgage and guide you through the whole process.

What is An Adverse Credit Mortgage?

An “adverse” credit mortgage is much the same as those with “bad credit”, it is when you have a low credit score or previous issues which may make it harder for you to get a mortgage (or other types of credit).

What causes a bad credit history?

There is not really such a thing as a “bad credit” score specifically, this is because how credit scores are calculated are varied. Your score is not what will impact your final decision, it is the different information which makes up your credit file.

Below are some of the key contributors to a “bad” score:

  1. Electoral roll information – If you are not registered to vote
  2. Any Previous court records – Such as CCJs, IVAs, Bankruptcies
  3. Previous history of missed payments/defaults
  4. Wrong previous addresses on credit report
  5. Frequent credit applications, especially declined ones
  6. How much you owe and what you are currently repaying
  7. Any payday loan information

You can take steps to repair your own credit rating, which will make getting a mortgage easier, but not all lenders will use this data in the same way. Your circumstances will be viewed and dealt with differently by each lender but one of our experts can help you find the best potential mortgage for you credit history and help walk you through the steps to look to get this arranged.

Black Marks on Your Credit History:

  1. CCJs
  2. IVAs
  3. Bankruptcy
  4. Defaults
  5. Debt Management Plan
  6. Missed or Late Payment

But it is often not as bad as you think, those people who have had credit issues in the past could still get a mortgage – here at Just Mortgage Brokers we specialise in helping our clients who have almost given up hope.

We have a wealth of experience in dealing with mortgage lenders who are more sympathetic towards our clients, who may have experienced credit issues in the past. We maintain excellent relationships with these lenders, to give you the best possible chance of obtaining a mortgage with bad credit.

Can I get a bad credit mortgage?

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How do you know if you have bad credit?

If you are being chased by debt collectors, or receiving letters from credit card companies, it will be clear that you credit history is not as strong as it could be. However, for some the first real sign they have a bad credit rating is when they are declined by a high street lender after they try and get a mortgage.

This may be a surprise if you have not had a long period of a credit history (or no credit history at all), but for others it may be less of a shock, simply because they may be aware of missed payments or any court actions in the past. The best way to identify what might cause a bad credit history is to obtain a copy of your credit report.

Poor Credit Mortgages

If you are looking for a mortgage with poor credit and have a poor credit rating or some elements in your credit history which may make getting a mortgage difficult, it can feel like you’re fighting an uphill battle. High street lenders are typically reluctant to provide mortgages to those who they consider have “poor credit”, which is due mainly to their own process and not fully understanding each applicant.

The expert team here at Just Mortgage Brokers take time to understand each applicant, their credit history and which lenders they’re most likely to find success with. We aim to place every mortgage we can as well as help each applicant improve their own “financial health” to increase the chances of lending in the future.

How do you get your credit report?

Being able to obtain your own credit report has never been easier, and we would always strongly advise people to take a pro-active approach to this, especially when they are looking to get a mortgage and are concerned they may struggle to gain credit.

If you have not already, take a look at one of our preferred choices here. If you want more information on the content of your credit report, we have a definitive guide which will give you what you need.

What is my credit rating?

Finding our your credit rating is easy.

Find out your credit report

What Loan to Value can I get for a Bad Credit Mortgage?

The loan to value (LTV) is a common way for lenders to show how much of a mortgage you can obtain against the value of the property. This is best thought of as how much deposit do you need to have in order to get the mortgage. With bad or adverse mortgages the LTV is very important as the less you need to borrow, the more likely it will be that you get the mortgage.

As with all mortgages, the lower the LTV, the lower your monthly payments are likely to be, but this does mean you will have to pay more up front. With any kind of mortgage, whatever your credit history, putting down a larger deposit can be worthwhile, but it is not always essential.

Mortgage up to 95% LTV

For many with a history of bad or adverse credit a larger deposit will typically be required than the usual industry minimum.  The average minimum requirement is 15% or a maximum of 85% loan to value but this will very much be dependent on the overall assessment of risk.

If you find the right broker who has an unlimited access to lenders, finding higher LTV mortgages (even as high as 95%) could still be possible – even if you are worried about your credit rating. We at Just Mortgage Brokers work hard to ensure that all clients, even first time buyers with a poor credit score, have the ability to be considered for a mortgage.

How much can I borrow if I have a bad credit rating?

Many lenders now approach the question of how much someone can borrow based on affordability.  This will take into consideration your income(s) and in turn any outgoings such as ongoing credit commitments and your day to day living expenditure working on the number of applicants and the number of any dependants.

Although your ability to afford the loan is what the lender needs to establish they may also work on a maximum income multiple.  This can vary from lender to lender with these typically ranging from 4x to potentially 5x your income(s).  Working on a combined income of £40000 this could equate to between £160000 to £200000.

With such a varying array of methods used by lenders to assess this critical aspect of your plans, the best first course of action is to speak to one of our advisers. They are experienced with working with bad credit lenders, and will know the best way in how to look to get you the mortgage you need and will be able to help you understand the steps you need to take to get there.

Bad credit calculator

Find out if you can get a mortgage with our new calculator.

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What Else can I do to Secure a Bad Credit Mortgage?

The best thing you can do is help show you are less of a risk to lenders. Having existing debts is not necessarily a bad thing, providing you are able to demonstrate your ability to continue to pay the monthly payments due in the future.

The experience we at Just Mortgage Brokers have working with lenders who specialise in bad credit mortgages means we can best help match you with the right lender, take care of the application itself and advise you on anything else you can do to make your application successful.

The next step is getting in touch with one of our team, do not be put off by any possible negative previous experiences with other brokers or high street lenders, we specialise in helping those who have not been successful in the past.

We have a wealth of experience in dealing with mortgage lenders who are more sympathetic towards our clients, who may have experienced credit issues in the past. We maintain excellent relationships with these lenders, to give you the best possible chance of obtaining a mortgage with bad credit.

Quick FAQs

Here at Just Mortgage Brokers we have an in depth FAQ sections which looks at any of the more major questions you may have – which can be found here – although we’ve put our most commonly asked below:

Mortgage with bad credit Expand

Getting a mortgage with bad credit can be tough and many applicants who find themselves in this situation, generally do not know the best way to approach it. A poor credit background may make things tougher for you, however, there are some steps we can aid you in to repair your credit rating, if you get a copy of your credit report we can best advise the steps you can take.

Mortgage with poor credit score Expand

If you’re concerned that you have a poor credit score, there is still a strong chance that you can get a mortgage. Many people’s perception of what a “poor credit” score is varies, and what most don’t realise is that having a black mark on your credit file is far from a significant problem for those looking to buy a house or remortgage.

Difference between 'Adverse' & 'Bad' credit? Expand

Very little, they mean the same thing for the purposes of getting a mortgage. Some people may feel their credit rating is “bad” or others may have told that their credit history is “adverse”. These are two ways of saying the same thing – we can help with both.

What does a bad credit rating look like? Expand

It’s very hard to say exactly as lenders look at different criteria when they assess a mortgage, but if you’ve got CCJs, any recent defaults or IVAs or you’re on a Debt Management Plan you may need to seek specialist advise like Just Mortgage Brokers in order to obtain the right mortgage for you.

How do I find the best mortgage deals? Expand

Even with a poor credit history, it should still possible to find a competitively priced mortgage, but you will have to look a little harder than those applicants with a better credit record. It’s very unlikely that you’ll find the best bad credit mortgage deals on the high street. Some of the mainstream lenders may consider smaller, historical issues, but most will probably refuse your application. The reality is that there is a huge range of different lenders out there, and just because you don’t tick all the boxes of a mainstream lender, that doesn’t mean you’re not going to be able to find a suitable deal elsewhere – you just need to know where to look!

Will it cost me more? Expand

It’s really all about the level of risk you represent. There are undoubtedly some adverse credit events, such as a bankruptcy or CCJs, which will seriously affect your credit history; but there are still plenty of steps you can take to repair your credit score. For example, you might have a CCJ on your record from four or five years ago. In that time, if you have used credit responsibly and made all your repayments on time, your credit score may be healthy once again. However, because the CCJ will still appear on your credit report, you might not meet the strict lending criteria of a mainstream lender. Bad credit mortgage deals can sometimes be more expensive, due to the perceived additional risk the lender is taking on. Although with the right mortgage and finding the right lender we can still find you the right deal.

Are you tied to high street lenders? Expand

No, we have unlimited access to the market which means we can go that extra mile to find you the mortgage which is right for you.

What do I need to get Started? Expand

In short, you only need to pick up the phone or send us a message. However, if you can obtain a copy of your credit report and have that to hand when you speak to us, this will speed up the process. It is important as part of this process that you do not make multiple searches on your credit file when you are looking for a mortgage. This is typically caused by applications for credit cards, finance options, loans etc. Whilst doing this doesn’t stop you from getting a mortgage, it can be warning sign for some lenders.