Bad Credit Mortgages

‘How Can I Get a Bad Credit Mortgage?’

Getting a bad credit mortgage may be easier than you think. Don’t be disheartened, getting turned away by high street banks & lenders is more common than many people realise.

The process of getting a bad credit mortgage is actually very straightforward, it is something entirely under your control!

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Getting an Adverse Credit Mortgage

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 “Adverse Credit”?

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 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.

Here are some key contributors to a ‘bad’ score:

  • Electoral roll information – If you are not registered to vote
  • Any previous court records – Such as CCJs, IVAs, bankruptcies
  • Previous history of missed payments/defaults
  • Wrong previous addresses on credit report
  • Frequent credit applications, especially declined ones
  • How much you owe and what you are currently repaying
  • 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:

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 – 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.

Find out if you can get a mortgage

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.

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.

How bad is my credit score?

In the UK most people have three credit scores, one from each of the credit reference agencies – Experian, Callcredit and Equifax – who collect data on people’s financial behaviour. Lenders will access one or more of these agencies when conducting a credit check.  Do note however that a lender will use its own assessment of your credit rating rather than that given by any of the agencies.

There is no easy way to compare scores and no simple answer to the question of where someone sits overall with regard to credit rating. Add to that the fact that different lenders interpret data differently and you can see the problem.

However, as a broad guideline:

Experian generates a score from 0–999 and breaks results down into five categories, as follows:

Experian ScoreValue
0 – 560Very Poor
561 – 720Poor
721 – 880Fair
881 – 960Good
961 – 999Excellent

Callcredit will generate a credit score out of a possible 710, and use the score to calculate a rating from 1 to 5:

Call Credit RatingValue
1Very Poor
2Poor
3Fair
4Good
5Excellent

Equifax generates a score out of 700 and breaks results down into five categories, as follows:

Equifax ScoreValue
0 – 279Very Poor
280 – 379Poor
380 – 419Fair
420 – 465Good
466 – 700Excellent

 

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?

How Can I Get a Mortgage With Bad Credit?

The process of getting a bad credit mortgage is actually very straightforward, it is something entirely under your control – you can start today with the following steps:

  1. Check your credit history
  2. Ensure your credit history is correct (addresses, records of balances etc)
  3. Close any accounts you don’t use
  4. Look at credit builder Credit Cards
  5. Register on to the electoral roll
  6. Ensure you only spend within your means
  7. Secure a decent deposit – consider saving longer if possible
  8. Speak to a broker with unlimited access to the lenders.

As straightforward as this process is, it is likely you will still need some more in-depth advice into each area. For more information, read more on ‘Getting a Mortgage with Bad Credit’

How We Can Help

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.

What Else can I do to Secure a 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 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.

FAQs
  • - Are you tied to high street lenders?
  • - Do overdrafts make credit scores worse?
  • - What do I need to get Started?
  • - What does a bad credit score look like?