BAD CREDIT MORTGAGE GUIDE
What is Bad Credit?This is an indication that your Credit Rating is not good and that it might be difficult for you to get any more loans or credit, including mortgages.Bad credit is also known as poor or adverse credit, so if you see these terms just remember that they are in fact all the same thing and should be treated in the same way. |
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However, if you are thinking about getting a new mortgage or changing your existing one then the fact that your credit is not so good shouldn't necessarily stop you from getting one.
Your ability to do so will depend on your current circumstances and it may cost you a little more, but there may still be several different options available to you.
How to get a Mortgage with Bad Credit?
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Our brokers are specialists in finding mortgages and loans for individuals and couples with an impaired credit status.They have access to many sub-prime mortgage lenders in the UK who realise that what happened in the past may not be so relevant today and will look at each mortgage application on its’ merits before making a decision about a financing request. |
The approach of these lenders is much more flexible and our brokers can search the market to find you the most beneficial interest rates and ensure your application for a home loan is accepted. Our brokers advice is free and impartial and without obligation, so call us now.
Already Applied and Failed?
Finding a mortgage when you have adverse credit can be difficult, so if you have already had an application turned down then you should speak to a broker straight away. Repeated failed applications after you have been refused a mortgage will hurt your credit history even more and that’s exactly what you don’t want to do!
Just call us and a new morgage totally suited to particular requirements could soon be on its way to you. Remember bad credit should not be a problem! Stay online and give us a call now.
How do I get Bad Credit ?
Whenever you apply for any form of credit such as a credit card, personal loan, bank current account, mortgage loan or hire purchase agreement, the lending institution you are applying to will perform a check on your Credit History, because they do not want to take on any high risk loans.
This is called a Credit Check and they do this by consulting with one or more of the UK’s Credit Reference Agencies. Each one of these agencies will have gathered relevant information on you over the years, especially anything related to your current or previous finance agreements and borrowing activities.
This information held about you is called your Credit Report and each agency will have compiled one on you. It is likely that the information on each one is not identical.
The credit agency selected by the lending institution will supply a copy of your credit file to the institution, which will then check your details to determine your credit history and confirm what you have put on your application form.
The institution will use a points scoring system to calculate your Credit Score from the information in your report and on your application form. This score allows them to assess the risk involved in going ahead with what you have applied for.
If you have never had problems making credit card payments or paying off loans etc in the past and you have a good financial outlook then your are more likely to achieve a higher points total.
This higher score would give you a Good Credit Rating and would mean that your application would probably be successful.
A different record of personal financial management, where for example you have failed to repay loans on time or where your credit card or mortgage payments have got into arrears, would mean that the resulting score would be lower.
This lower credit score would mean you have poor credit and therefore a Bad Credit Rating and your application could be turned down. A loan to you would be considered a high risk loan by a lender and if a mortgage were offered to you it would probably be at a higher interest rate.
Please note that a mortgage offered to someone who does not have a good credit rating is often referred to as a non-conforming or non-standard mortgage due to the fact that they are different than the usual conforming or standard residential mortgage.
What Can I Do About Poor Credit?
Any adverse effects on your credit status will mean that you will continually battle when trying to get credit and if you get it, it is likely to be more expensive. You should make every effort you can to try and improve your credit score so that loans in the future will cost you less.
It can take a long time to repair bad credit so you should start on this as soon as you can. Putting the time in to resolve issues with your credit report really will pay dividends!
No Credit At All?
If you have never applied for any type of loan or credit before then you will need a No Credit Loan or mortgage. As well as looking for the best current mortgage rates our brokers will ensure the other terms are the best available too.
Want a Free Copy of your Credit Report
Good News! You are now able to get a copy of your Credit File from any Credit Reference Agency. Most used to cost you a fee, but now they all provide a Free Credit Report. Getting one of these will help determine the reason for your poor credit history and will be an essential tool in your credit repair strategy. Fix any problems you find on your file and you may find that you won't need to look at bad credit mortgages anymore.
