Benefits and Bad Credit Mortgages
3 minute read
Nearly every person in the UK receives some kind of benefits from the government. For some people, this could just be Child Benefits, which every family in the country is entitled too, providing you do not earn over a certain amount. While others, maybe entitled to additional benefits. Just because you are on benefits, this shouldn’t put you off from thinking towards you and your families future and thinking about investing in property. It is possible to still get a mortgage even if you receive benefits. Unfortunately, similarly as those who don’t receive benefits to support their income, those who receive benefits to support their income can still find themselves with a poor credit rating. This could be for a number of reasons, such as missed credit payments in the past; no credit history or who have been declared bankrupt or have CCJs against them. As it explained previously in our How to improved your credit rating guide, it is possible to improve your credit rating, so that in future, you can more credit options available to you.
How does that help me now?
Having your income partially supported by benefits and having a bad credit rating, doesn’t mean that you won’t get a mortgage. Unfortunately, for some families banks won’t be able to help you until you have improved your credit history. Nor will they be able to offer you a mortgage if your income is solely made up of benefits. However, there are many people out there who can still qualify for a mortgage, even if their credit rating has taken a hit. It is definitely advisable to go to visit a broker that specialises in Bad Credit Mortgages giving more consideration to those who provide a soft footprint credit search. Even if you think, you have a bad credit rating, it might not be as bad as you thought and you could still qualify for a mortgage. It is important to remember, that if you can secure a mortgage with your current credit rating you may find that you pay more than others around you. This is due to the fact that the lender see’s you as more of a risk, than someone with an excellent rating. However, don’t despair, if you make your payments on time for the term of the mortgage, when you search for a new mortgage deal in the future, your credit history be improved and you should be eligible for enhanced deals.