It is possible, but it may be challenging depending on the circumstances, severity, and type of your bad credit history.
Bad credit mortgages have higher interest rates and may come with additional fees. Before they approve your application, you will need to show proof of income and assets.
It is important to remember that you have options, even if they may not be readily visible or advertised by the bank.
How Do You Apply?
There are a few steps you can take to increase your chances of getting a mortgage if you’re not sure if your credit score is good enough.
Step 1.
Take a look at the credit reports and assess how it has affected your credit score. It is possible to see exactly what information is displayed and whether defaults from the past have cleared.
Step 2.
A specialist mortgage broker can help you find the best mortgage for your situation.
Before making recommendations, a broker will review all financial information including income, assets, and employment status. A broker can also help you fill out paperwork that lenders require.
We can help you contact a mortgage broker that we know to get in touch with you.
Step 3.
A sure way to show a lender you are serious about getting a mortgage if you have bad credit is to make as many deposits as possible.
A lender might ask for a 40% deposit depending on your credit history. However, a good starting point is anywhere from 20% to 25%.
How Can Bad Credit Have An Impact On Your Chances Of Getting Mortgage Approval?
Your credit history can have an impact not only on whether you are eligible for a mortgage but also on the interest rate. Lenders will usually only offer attractive rates or introductory rates to those who have demonstrated good borrowing habits in the past.
You are responsible for your finances. Understanding how credit issues can impact your loan terms and rates will help you make sure that they are on the right track to get your best-rate mortgage.
What Types Of Bad Credit Are Lenders Likely To Overlook?
They view each issue with the same severity and offer the same options to UK lenders.
The following are the UK lenders available:
- Missed payments
- Debt Management Plans and IVAs
- County Court Judgements (ccj mortgage)
- Bankruptcy
Why Use A Broker Instead Of Going Directly To A Lender?
Brokers work independently of banks and can compare all available offers to find the best deal for you based on your particular circumstances.
They can also access lenders that may not be accessible through traditional channels. Sometimes, they can even secure an unlisted rate and special offers that aren’t possible through other comparison websites.
Although bad-credit mortgages are more difficult to find than standard loans, a mortgage broker can help you understand the criteria that different lenders consider when considering applicants. Because they specialize in different markets, they can help you find the right lender for your needs. This will save you time, money, hassle, and effort.