Clever Mortgages understand that life’s challenges can sometimes result in a less-than-ideal credit history, but we firmly believe that everyone deserves the opportunity to own their own home.
A low credit score can be a significant barrier when it comes to securing a mortgage. Traditional lenders often use credit scores as a primary factor in determining an applicant’s eligibility. The lower your credit score, the more challenging it can be to qualify for a mortgage, and even if you do, you might face higher interest rates and less favorable terms.
At Clever Mortgages, we believe that everyone deserves a chance to own a home, regardless of their credit score. We understand that life is full of ups and downs, and a low credit score doesn’t define your financial future. That’s why we’ve developed a tailored approach to help individuals with low credit scores get a mortgage.
If you’ve been held back by a low credit score, don’t let it stand in the way of your homeownership aspirations. Contact us today to learn more about how we can help you get a mortgage and take the first step towards making your dream home a reality.
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There is so much jargon when it comes to mortgages.
Our mortgage advisors are trained in all mortgage types and schemes and can explain this to you in a simple easy to understand manner. We can also do the mortgage application for you! For a free no obligation phone call to discuss your situation, call 0800 197 0504 or complete the pre qualify form
The answer is probably yes, although every situation is different and it can sometimes limit the mortgages available to you.
We have a team of specialist brokers that deal specifically with bad credit mortgages. Speak to one of our brokers today to see if we can help you. There is no obligation and the initial advice is free.
Just because your credit is bad now doesn’t mean it will stay this way forever. There are a number of things you can do to improve your credit score and get your finances back on track. This might mean paying higher interest rates, for now, to make up for it, but over time you can prove to lenders that you’re a trustworthy person to lend to again.
There are still mortgage options available to people who have negative information on their credit file. This might be a CCJ, defaults from previous loans or even a bankruptcy discharge. You may have otherwise been in an IVA or other debt plan to help repay your debts. If you’ve struggled financially in the past but are back on track now then there are lenders who will consider your application. This negative information remains on your credit file for a maximum of 6 years, so if you’re unsure that it still exists you should check your credit report. You can do this through a credit reference agency such as Experian or Equifax.
If your partner has struggled with debt then it’s natural to worry about how this might affect you as well. The good news is that there are lenders out there who are willing to consider your application whether you’re buying a house individually or looking for a joint mortgage. If you have no financial links with your partner already, such as a loan or a joint bank account, then your partner’s credit score won’t affect you getting a mortgage independently of them. Even if you’re married you won’t be associated financially unless you have some sort of joint finances. Alternatively, you might be asking will my bad credit score affect my partner?
If you’re looking for a joint mortgage, however, you will become financial associates and will both be liable to repay. A joint mortgage will allow you to borrow more money, as it will take into consideration both your incomes. Despite whether or not you have a good credit score, your partner’s bad credit will affect your interest rate on the mortgage and will likely require you to put down a larger deposit. As each person’s situation is unique, it’s best to speak with a mortgage advisor before applying.
Take a look at our article on joint mortgages for further information.
Many people assume that if they keep applying for finance they will eventually find a company who will accept them. This couldn’t be more incorrect. When searching for finance, multiple applications can be one of the worst mistakes you can make. Each time you make a credit application it leaves a mark on your credit file. This is because the lender will typically carry out a “hard” search, which will leave a footprint on your credit file that other lenders can see. These have a direct impact on your scoring as they show your level of need for credit. If you have too many applications made within the same time period, lenders can be put off by your application as it can seem as though you’re desperate for credit and therefore potentially less likely to make payments on time.
The best way to approach finance applications is to do your research before applying and if you know you’re going to apply to more than one, then try and spread these out over a few months. If you want to make comparisons, you can always ask the lender to run a soft search for a quote, which will only be visible to you.
If you have bad credit you should be doing everything you can to help improve your score. One of the ways you can do this is by making sure you’re on the electoral register. If you’re not then you should register as soon as possible. Although it’s not compulsory to vote, having your details available on the electoral roll allows lenders to easily verify your identity and address. This can have a positive impact on your credit score. If you’re not sure if you’re already registered, you can check on the website Your Vote Matters.
Most of our customers have had some form of credit difficulties, from low credit score, missed payments or declined a mortgage elsewhere.
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