Credit Impaired Mortgages
In the current financial climate you are not alone. We can access lenders who will consider applicants who may not have the perfect scores required by lenders. Its always worth a chat. Get in touch we may be able to help.
Over the last few years, with the cost of living becoming unbearable, rising food prices, energy bills, and many hardworking families missing a payment on a phone bill, credit card, etc.
We get it and want to help those who have overcome these obstacles. We would not advise you to take out a mortgage if you are not on top of your finances—why would you? But for those who have overcome hurdles, maybe you had a bad divorce or lost a job and did not have income protection. These are the types of people we can often assist.
First, some people will get a mortgage declined by a High Street lender simply because they don’t have a credit history or have miscalculated their income. Being rejected by one does not always mean the others will do the same, or you have adverse credit. In this instance, you do not need to look at “adverse credit” mortgages immediately. Different lenders have different benchmarks when deciding who to lend to.
However, for those with known issues, getting a mortgage with a poor credit history is still possible. Numerous options are available, depending on the specifics of your credit issues.
Here’s what you need to know:
When you apply for a mortgage, lenders will conduct a credit check. The significance of negative marks on your credit history will vary depending on the amounts involved and how long it has been since the issues occurred.
Comparing bad credit mortgage rates can be challenging as they depend on your specific credit history. For example, deals accommodating County Court Judgements (CCJs) and Individual Voluntary Arrangements (IVAs) will have specific criteria regarding recent issues.
In general, an applicant with a resolved minor credit issue will likely secure a better rate than someone with ongoing severe credit problems.
Re-mortgaging –
You can usually re-mortgage with adverse credit, though improving your credit score is advisable if possible. If you don’t need additional funds, consider Product Transfer options with your current lender. This again is an area where you should take professional advice. Once your adverse credit has lapsed (normally after 6 years for an adverse event has been registered) you may wish to move onto more favourable terms.
Making timely repayments of your credit commitments will help maintain your credit history. Over time, with a better credit score, you may be able to re-mortgage with a High Street lender at a better rate.
Next Steps
Check Your Credit Score: Access your free credit score for 30 days here.
Don’t let your past define your future. Want to know more, contact us for a friendly no obligation reveiw.
