Taking out a bad credit mortgage
Have you been denied a mortgage because of your credit history? Do you have bad credit and wondering how to get a bad credit mortgage?
Clever Mortgages can help applying for a bad credit mortgage
Finding a lender who will be willing to offer a ‘bad credit mortgage’ can sometimes be difficult. Here at Clever Mortgages though, we have access to hundreds of different mortgages and could find you a solution, even with a low credit score. We look at each case individually and work with the lenders who could provide you with the best mortgage based on your circumstances.
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Understanding Bad Credit
A person with bad credit is mainly caused by late/missed payments, defaults, CCJs and bankruptcy. Having no previous credit, is also linked to a low credit score. Both of these can flag to lenders a higher risk to lend – and a reason why it can be more difficult to secure a mortgage.
Our team at Clever Mortgages understand that everyone’s circumstances are different and they may have got into financial difficulty through no fault of their own, for example long-term illness, a breakdown in relationship or losing their job. We assess people’s financial situation and what they can afford to make sure we help to find the right bad credit mortgage.
Do I have Bad Credit?
If you have missed payments or defaulted on a debt, then your credit score will have been affected and you will have bad credit profile. Other signs of having bad credit include:
- Being declined for a credit card and loans
- Being declined a mortgage by a high street lender
- Declined or increased premiums on insurances
- Receiving calls from debt collectors
- Being offered high APRs and low credit limits
- Not being able to secure a rented property
You can find out your credit score and view your full credit history from a credit file provider such as credit karma, the scores do differ between providers, but it will give you a good guide. The credit report will give you details of who you owe money to, dates of when you have missed payments and a list of companies which have tried to check your credit score.
You might be aware if you have a bad or good credit history, as you have missed payments, been late with payments or not made the payments at all, you may also be pestered with calls from debt collectors. This will point to your credit score not being as good as it could be.
Why People Fall into Bad Credit
Though people’s cases are usually unique, here are some of the most common reasons people fall into bad credit.
- Health Challenges: This is one of the (sometimes) unavoidable challenges that could cause bad credit. People who have gone through a rough patch of illnesses that can make it difficult to keep up with payments, especially when they are still in a long period of recovery.
- Loss of Job: Due to a loss of or reduction in income, you may not be able to meet the agreed credit repayments. Failure to meet your repayment amounts and deadlines damages your rating. Your repayment history is added to your credit history which lenders will consider deciding whether or not to lend to you.
- Change in family circumstances: You may have had an addition to the family, which has meant a parent taking time of work, if this has led to a reduction in income, at a time of higher spend, you may find yourself missing payments. Also, a death of a made income earner can have a massive impact on the finance and ability to repay debts
- Over Committing: You may have taken on too many financial commitments at one time and this has led to unmanageable monthly payments
- Changes in interest rates: A lender may have increased your interest rate after a special or introductory rate, or you may have breached the terms and they have imposed a higher standard or even penalty rate
- Divorce or separation: The financial issues that result from divorces can affect your credit. With an immediate change in income and expenditure, it could be that two households are now supported for the same income as a previous one. There could be joint debts and one party may not make the payments as they fall due. This could lead to both credit reports reflecting bad credit. This will continue to go on until the account is completely closed or your name is totally removed from the account.
- No credit history: Whilst this is not ‘bad credit’. It may come as a surprise that you fall into a similar bracket to it. You may think, since you’ve had no credit and therefore no chance of bad credit that you are ok to lend to. However, as you have no proof of paying a debt back on a regular basis, lenders will be cautious in being the first to lend to you.
There are many more reasons people fall into bad credit. At Clever Mortgages, we listen to each individual story, assess the situation, and help to find the right mortgage solution for you.
How Bad Credit affects Mortgage Applications
When a borrower submits an application for a mortgage, the lender will consider many things, the main one being the individuals credit profile and score, this will lead them to a decision as to whether or not to lend.
However, if you have a low score or bad credit, this doesn’t mean you cannot get a mortgage. Clever Mortgages specialise in helping customers every day, achieve their dream of buying a house or refinancing their current property.
Use our mortgage calculator to see our best rates
Please note, individual circumstances may alter results
Based on a property value of £ with a £ mortgage for years
Why You Should Use a Mortgage Broker to get a bad credit mortgage
Mortgage brokers are experts that can provide you as a borrower with many lending options, from high street lenders to those that sit behind or may even be part of a high street lenders. With different products, loan types and rates, if there is a lending option out there, Clever Mortgages will find it.
Using a mortgage broker will not only increase your chances of getting a bad credit mortgage, but it can also help you obtain mortgages with reasonable rates. Furthermore, as a mortgage broker has access to most of the UK lenders and the knowledge of what they will offer, it can save you time and effort in finding the right mortgage.
A mortgage broker will also help you deal with all the necessary paperwork involved in obtaining the mortgage.
Why You Can Trust Us
Clever Mortgages are mortgages brokers you can trust and feel comfortable with. We specialise in finding the right mortgage solution for every individual or family. We do this by reviewing your situation and then helping to find the best bad credit mortgage for you circumstances.
Here are some of the reasons why we are your ideal bad credit mortgage broker:
- We are experts in dealing with bad credit, having a team of people who are knowledgeable about what to do for individuals with bad credit. We have already helped many people obtain the right mortgage for them. We could help you with yours too.
- We listen and understand. As a bad credit mortgage broker with valuable experience, we know that not all customer’s cases are the same. This is why our team pays close attention to understand your situation and help you get a mortgage that is suitable for your situation
- We source the most suitable mortgages for all our customers. We work with more than a hundred lenders, some of whom specialise in providing mortgage for people with bad credit.
- We have a great support team. We understand how taxing getting mortgages—especially bad credit mortgages—can be. For this reason, we provide our customers with all the necessary support to ease the entire process, helping to make the mortgage process a stress-free one.
You could still get that affordable mortgage you desire, even with the bad credit – helping to get your finances back on track.
We will be there with you all the way. Arrange a callback or click below to apply and see how we could help you