Bad Credit Mortgages
At Mortgage Solutions, we understand how your circumstances can change and that previous financial decisions should not determine or remove your right to purchase your dream home.
If you have arrears, defaults, country court judgements or debt management plans, it doesn’t mean you aren’t eligible for a mortgage. Many people assume if they have a bad credit score, they have it for life and will be ruled out of the mortgage process straight away. However, this isn’t the case, and Mortgage Solutions can help those looking to apply for a mortgage when they have had bad credit.
To change your current credit situation, check out some frequently asked questions around bad credit mortgages.
Can I get a mortgage with a bad credit score?
The answer is yes. It is possible to get a mortgage with a bad credit rating. However, the process may be much more difficult, requiring a higher deposit and paying a higher interest rate.
The decision is subjective to the lender, with varying terms and conditions. Both minor and major credit problems will be considered from a late payment to bankruptcy, so it is important to know this may take a few attempts depending on your credit score.
Bad credit mortgages, sub-prime mortgages and adverse credit mortgages are the mortgage options for those applying with a bad credit score.
Can I fix my credit score quickly?
Yes, there are many ways to improve your credit score quickly. The good thing is that if you have previously had a bad credit score, you are better positioned to quickly make gains over someone who has a strong credit history. Here are a few tips to help improve your credit score.
•Start by building your credit history. Having some credit is better than having none, as companies will find it difficult to assess you.
•Register your address and where you live. Having an address will prove that you live in the country and increase your chances of eligibility for a mortgage. Registering on the electoral roll is a great way to achieve this and can be done on shared accommodation.
•Keep on top of your payments. Managing monthly or weekly payments is a great way to show a lender that you are a reliable and trustworthy borrower who can manage money responsibly. But regularly check in on terms and conditions of credit cards, as unused credit cards can negatively impact your score.
•Keep credit utilisation low. This refers to the percentage you use of your credit limit. Having credit is better than having none at all, but having a lower percentage is favoured among lenders and will increase your score. We recommend keeping your credit utilisation at 25%.
How can I fix my credit score quickly to buy a house?
Whether you’re a first-time buyer or a homeowner looking to move or re-mortgage, we offer a FREE service to help ‘tidy up’ your credit report and give you the best chance for mortgage approval.
We then will identify the lenders most likely to provide you with the mortgage you need. We’ll take a good look at your finances before ruling out the mortgage providers with strict and inflexible lending criteria. With our help, there’s no need to send off countless applications or risk being turned away.
What if I have claimed bankruptcy?
If you have been declared bankruptcy in the past six years and are either struggling to get a mortgage or worried that you might not be accepted, there are still mortgage options available to you, and we can help!
We can start to rebuild your credit profile and identify the right lenders on the market who are most likely to provide you with a mortgage.
If you keep up your repayments, your credit rating should continue to improve, and with our annual review, we will ensure you’re kept on the right deal possible.
Get in touch
If you are unsure about your current credit situation or need advice on improving, contact us now, and we can complete our free tidy up service, to get you closer to buying your dream home.
Your home may be repossessed if you do not keep up your repayments on your mortgage.
Some buy to let and let to buy mortgages are not regulated by the Financial Conduct Authority.