can i get a mortgage with bad credit?

can i get a mortgage with bad credit

Can i get a mortgage with bad credit? There are lots of mortgage lenders out there some who dont even credit score  – so its about searching for the right lender for you –  A poor credit rating can be a major barrier to getting a mortgage, but the good news is, there are lenders who are prepared to help.bad credit mortgage

Its surprising the myths that are out there, some people come to us and have been told they will have to wait 5 years from the date of their bankruptcy discharge before they can apply for a mortgage – so when they apply and are then told they could have applied 4 years earlier, imagine their horror as they work out how much rent they’ve paid when it could have gone towards their mortgage.  Equally we come across people who are told as soon as your IVA is cleared you are free of all debt issues and -again this is far from the truth, as most uk mortgage lenders have criteria that revolves around the date of discharge from the iva or bankruptcy – not the date it was taken out.

Certain lenders specialise in lending to people who need to repair their credit or have more historic issues.  This is more common for second-time buyers who have more equity and can provide a bigger deposit.


As to what amount of mortgage or mortgage rate you’d face, well it depends on the extent of the bad credit and how recent it is.

Where can i get a mortgage with bad credit

Firstly Find the right lender

Before you do anything, however, you need to find the right lender for you. Some mortgage lenders specialise in helping people with bad credit ratings to get onto the property ladder, so it may be worth getting in touch with this type of lender if you feel that your bad credit rating might get in the way of you moving into your new home.

Some banks assess whether a person is suitable for a mortgage using a computer that decides based on facts alone. This probably isn’t the best method of securing your mortgage and instead it can pay to look for lenders who make their assessments on a more individual basis and will listen to your circumstances to find out why your credit score is the way it is. In some cases, these lenders may decide to lend you the money regardless of your bad rating, providing they feel that your poor credit is no longer relevant.

This might be best left to a mortgage advisor who understands this part of the market,and has experience dealing with bad credit mortgages. They can quickly assess your circumstances and tell you what the liklihood of a mortgage is, what amount of deposit you’ll probably need and also typical interest rates and monthly payments.


How can i get a mortgage with bad credit

Before applying for any mortgage, you should always check your credit report carefully, to establish if there is any reason why your application could be refused. You can obtain a copy of your report from one of the major credit rating agencies, which include Experian, Equifax and CallCredit.

Remember that certain simple oversights, such as not being registered on the electoral roll, or failing to close down credit card accounts that you no longer use, can have a negative impact on your credit rating.

Get on the electoral register

It may come as a surprise, but being on the electoral register can help to strengthen your credit score a little. This helps lenders to conduct certain checks on you, while helping them to prevent fraud. This is a quick and easy way of increasing the likelihood of securing a mortgage and you can sign up easily on the About My Vote website

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