Mortgages, even with bad credit

Poor credit ratings can be a huge barrier when trying to get a mortgage. Luckily there are brokers such as Clever Mortgages who can help you secure a bad credit mortgage when you are looking at buying a house.

We have help 1000’s of customers, just like you with bad credit, achieve cheaper mortgage payments.

Even if you have bad credit, you could still get a better deal on your mortgage. Remortgaging could be easier than you might think – especially when you choose a broker who knows how to save you money. Read below why we think we can help you and your current situation, see some case studies and then contact us for a friendly no obligation chat.

Enquire about a mortgage with Clever Mortgages and we could:

  • Save money every month by consolidating your debts* – we recently helped Mr D, who was coming to the end of his fixed rate mortgage, to consolidate his secured loan and mortgage into one more affordable monthly repayment and reduce his mortgage term in the process.
  • Take years off the term of your mortgage – we helped Mr B cut how long he’d have to pay his mortgage back over by 9 years. By consolidating a loan and a mortgage into one mortgage product, and applying as a sole owner rather than a joint mortgage – we knew we’d be able to save him years of mortgage repayments – saving him thousands of pounds.
  • Help you to get back on track – when Mrs R came to us they were on a far higher than average variable rate and trying to stay on top of their partner’s debt management plan. With the remortgage deal on a far better rate (from 5.74% to 2.1%), they were able to save money each month, and reduce the term of the mortgage – they’re now able to clear the plan and pay less each month.

Case study – over £50,000 saved in mortgage interest.

As well as over £50,000 saved in mortgage interest, Clever Mortgages also saved 7 years off the mortgage term

 BalancePaymentRateTermTotal amount payableInterest Payable
Current Mortgage£145,723£869.205.03%24 Years£252,068£106,345
New Mortgage£167,499£946.941.73%17 years£221,410£53,911

Mrs C had been with her existing lender for many years, keeping up with her repayments, however the lender no longer offered new products. Mrs C had just finished a 6 year IVA and wanted to raise money for much needed home improvements and get a new mortgage rate, Mrs C thought she was stuck on the lenders high standard variable rate.

Mrs C contacted Clever Mortgages, who were able to find a new lender with a much better fixed interest rate, reduced the mortgage term by 7 years, which will save £52,434 in interest over the term.  Money was also raised to complete the home improvements.

We help customers just like you every day to find a mortgage that saves them cash and helps them to take control of their finances.

What should I do next?

  • Speak us today for no obligation advice
  • One of our experts will call for a chat to find out more about what you’re looking for
  • We do all the hard work for you – we’ll find the right deal for you
  • Our expert will keep you in the loop all the way to completion

Why should I use a mortgage broker?

  • You’re likely to only have to do one application – this will save you time, and more applications from being recorded on your credit file
  • Some mortgages especially for people with bad credit are only available if you go through a mortgage broker
  • Brokers can advise on what would improve your chances – e.g. finding a guarantor or opting for a joint mortgage
  • They can take the hassle of application forms away – talking you through every step, and asking all the right questions

In the above example, the client had both a poor credit history and low credit score. Any savings are dependent on the type of mortgage and personal circumstances.

Why is your credit score important when you apply for a mortgage and how can you help?

When you apply for a mortgage, the lender will assess your application and review your credit score according to their criteria. Different lenders have their own criteria guidelines, so there are often things that’d cause your application to be declined by one, but not by another.

To assess whether they’re prepared to give you a loan, lenders look at information on your credit report such as:

  • Whether you’ve made late payments for bills and loans
  • Any details of debt management plans you have taken out
  • Other details, such as any financial connections with others you’ve had – for instance partners you’ve held joint accounts with

The most recent information will be deemed the most important. Details around debt and credit are usually erased within six years.

Credit scores are important – but whatever your situation, we might be able to help – just get in touch and let’s see how we could help.

* Debt consolidation is a good solution for some mortgage customers – however, it’s not suitable for everyone. You should always review the total amount payable through consolidation, not just the immediate savings in terms of a reduced monthly payment. Please be aware that any unsecured debts consolidated within the mortgage, would then be secured against your property.

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Why Clever Mortgages icon

Why Clever Mortgages?

At Clever Mortgages we can offer you the support and advice required to ensure you get the right mortgage for your first home.  We provide access to a comprehensive range of mortgages from across the market. We are also authorised and regulated by the Financial Conduct Authority (FCA) and adhere to the Treating Customers Fairly (TCF) guidelines, so you can be confident that we will treat you with integrity and only recommend products that meet your needs.

Mortgage types

A fixed rate mortgage is where your interest rate stays the same for a set time period (usually between 2-10 years). As a result your repayments are exactly the same each month, regardless of what happens to other mortgage rates. These types of mortgages are popular with first time buyers and people looking to budget each month, especially those who have suffered from a poor credit history.

The main downside to a fixed rate mortgage is that if mortgage rates go down you can be paying a higher amount than you would on a variable rate mortgage. However, this can also go in your favour and if interest rates increase you can be paying less than you would on a variable rate.

Every lender will have their own standard variable rate (SVR), which is considered their basic mortgage. This interest rate goes up and down, usually in line with the Bank of England’s interest rates but the lender is free to raise this at any time.

This means that your monthly payments can go up or down depending on what the interest rate is at a given time. Some months you could be paying more whilst other months you could be paying much less.

A discount mortgage is when a reduction is applied to the lenders Standard Variable Rate (SVR) for a certain length of time (typically 2-3 years). Discount mortgages are attractive as they can allow you to pay slightly less than the bank's standard rate. However as the SVR can still fluctuate they are not ideal for people who are looking to stick to a strict long term budget.

A tracker mortgage is basically a type of variable rate mortgage.  What makes them different from other variable rate mortgages is that they follow – track – movements of another rate, the most common rate that is tracked is the Bank of England Base Rate.

A capped mortgage is the same as a variable rate mortgage; however the interest rate can never rise above a set “cap”. These mortgages can work well for people who can budget for different mortgage repayments each month but want the reassurance that their payments will never go above a certain amount.

Offset mortgages are linked to a savings account as well as your current account. Your savings will be 'offset' against the value of your mortgage, and you'll only pay interest on your mortgage balance minus your savings balance. These types of mortgages work well for higher earners or people who have a good amount in savings that they want to use towards paying their mortgage.