We’ve helped 1000s of customers, and still counting!

We’ve made it our mission to help as many people as possible find their perfect mortgage, specialising in helping people with a bad credit history or previous credit issues – we think everyone deserves a chance to remortgage or own their dream home!

Difference between going direct to a lender and seeking the advice of a mortgage broker:

Going direct to a lender: This means you go directly to a lender to seek a mortgage, such as a bank or building society. They’ll probably have a range of products and eligibility checks will decide what products and deals you could access; however, you’re limited to what that lender has to offer.

Using a mortgage broker:

A mortgage broker is fully trained and versed in finding the best deal on the market, our brokers, for example, are all experts in bad credit mortgages and work with over 100 lenders. This means they have access to a huge variety of products that you could be eligible for, as each lender will have different approval criteria- and sometimes brokers can even find deals not advertised openly on the market. Your broker will make it clear which lenders are likely to accept your application and can help you prepare so you have the best chances of approval.

Our expert brokers come with a wealth of experience and work with over 100 lenders who consider all applications, even with a bad credit history.

We could help you secure a…

First-time buyer mortgage:
As a first-time buyer, buying your first home is a really exciting time – but it’s a daunting one too. At Clever Mortgages we’re here to help. Your dedicated adviser will talk you through every step, to make sure that you get the right mortgage to match your specific needs.

Remortgage:
There are many reasons to consider remortgaging, whether to save money on monthly repayments, get on a fixed rate to help you budget, consolidate debt or raise cash tied up in equity for improvements(link to home improvements blog)– whatever your need, we have access to a wide range of products and could help to secure you finance no matter what your circumstances.

Debt Consolidation mortgage:
A debt consolidation remortgage can help you combine all or some of your debt into one consolidated loan, allowing you to close multiple accounts you may have and only deal with one monthly repayment. You can use a debt consolidation mortgage to consolidate both secured and unsecured debt, and could help you save money on several costly interest rates. Our specialist advisors could help you find the right debt consolidation mortgage for your financial situation, even with bad credit.

Secured loan, or a homeowners loan:
A secured loan allows you to take out a second mortgage on your property while keeping your primary mortgage intact. If you’re struggling to find a remortgage, or if you just want to keep your current mortgage while accessing cash tied up in your home, a secured loan could be the solution for you.

Help-to-Buy mortgages:
The Help-to-Buy scheme means you only need to put down 5% of a home’s value for a deposit. The Government will then boost this amount with an equity loan of up to 20% (40% in London). At Clever Mortgages we work with many lenders who could offer you a Help-to-Buy mortgage whether you’re a first-time buyer or purchasing a new home.

Shared-ownership mortgages:
Whether you’re a first-time buyer or home mover, we could help you buy a share of between 25-75% of a property and then pay rent on the remaining share. Sometimes it’s hard to save up a full deposit, a shared ownership mortgage could help you move into your dream home!

Right-to-Buy mortgages:
Right-to-Buy allows tenants of council properties, and some housing associations, the legal right to buy, at a large discount, the council house they are living in. If you’re a council tenant, we could help you to buy the property at a significant discount through the Right-to-Buy scheme.

Buy-to-Let mortgages
Having a buy to let property could be an investment for yourself or your family.  You may benefit from additional monthly income and capital gains in the value. Our expert brokers can help you purchase or refinance a buy-to-let, even with bad credit.

Self-build mortgage
If you’re planning on building a property you might want to consider a self-build mortgage. Whether you have built several properties before or if you’re planning your first self-build, we could help secure a mortgage that’s right for you.

Second-home mortgage
If you already own a home but are looking to purchase a second property, we could help find the right mortgage for you. With a second mortgage application, there could be more challenges to overcome than with your first mortgage, but Clever Mortgages can support you through the process so you can successfully buy your second home.

Professional mortgage:
Some careers can make it harder to find a mortgage. Perhaps you’re self-employed, or work in contract-based roles, maybe you’re a company director – we can help guide you and our expert brokers can help you find the best mortgage to suit you.

Our advisors and brokers are all fully trained in bad credit situations and work with over 100 lenders, covering almost all financial situations and giving us the ability to help people who might be struggling to find a mortgage elsewhere. We understand that bad credit can happen to anyone, for a variety of reasons but believe everyone deserves a chance to own their dream home and find a mortgage to get back on track.

We could help you get your perfect mortgage, even if you’ve experienced:

Here’s how we helped one couple save £485 a month

Debt consolidation remortgage, even with bad credit Secured a 5 year fixed rate of 2.10%
Consolidated to one monthly payment Credit score repairing

At Clever Mortgages we don’t believe that people should suffer due to a bad credit history. Mr H had been in an IVA and Mrs H was in a Debt Management Plan. They wanted to consolidate their secured loan, plus three other debts, into a new mortgage product – hoping that this would bring down their monthly repayments.

Mr and Mrs H were paying £1,582 and are now paying £1,097 per month.  Clever Mortgages we were pleased to be able to help them make a real difference to their lives, which is also helping them to improve their credit score.

 BalancePaymentRateProductTerm
Previous Mortgage£61,000£4901.25%Tracker12 Years
Previous Secured Loan £43,000£43610%Standard Variable Rate12 Years
Previous Unsecured debts£44,320£657VariousVariousVarious
New Mortgage£150,00£10972.10%5 Year Fixed13 Years

Previous Mortgage

Balance£61,000
Payment£490
Rate1.25%
Term12 Years

Previous Secured Loan

Balance£43,000
Payment£436
Rate10%
Term12 Years

Previous Unsecured Debts

Balance£44,320
Payment£657
RateVarious
Term13 Years

New Mortgage

Balance£150,000
Payment£1097.67
Rate2.10%
Term13 Years
callback

Can you get a mortgage with debt?

Many people who are in debt automatically assume they won’t be eligible for a mortgage. This isn’t always the case and you should still have a chance to take out a mortgage if you have debts. However, if your existing or previous debt has had a negative impact on your credit rating, then it can affect your mortgage application. This can be anything from making late payments to paying into a DMP (Debt Management Plan).

Luckily, there are mortgage lenders who are understanding of people who have a less than perfect credit score. Rather than just taking into consideration your credit history, they will look at your current financial situation to assess whether you can afford the monthly payments.

How to apply for a mortgage with debt

Getting a mortgage with a bad credit score won’t be as easy as having good credit. It’s likely that you won’t be eligible for the same mortgage deals, as interest rates will be higher for bad credit customers. But there are still options available to you as long as you can afford to make the repayments.

Here we have provided some tips for getting a mortgage if you have any outstanding debt:

Work out your affordability

The most important thing that you should consider is whether you can afford the mortgage. The size of your deposit will make a difference on how affordable your mortgage is. Lenders are also unlikely to accept you at all if you don’t have a sizeable deposit to put down. In addition, if you do have a bad credit history then it’s often a requirement that you put down an even larger amount. This is typically between 15-30% of the total value of the property.

You should also work out if you can afford the monthly payments. If you know that they will be a stretch for you then there’s no point in applying as a lender will also be able to see that.

Check your credit score

Before submitting your mortgage application it’s a good idea to check your credit report. You can do this through a number of credit reference agencies including Experian and Check My File. Any information will remain on your credit file for 6 years so if you have any loan defaults, have been made bankrupt or been in an IVA then a lender will be able to see this information.

Knowing your credit score will give you a better indication of what rates and types of finance you can apply for. There might also be things that you can do to improve your credit score before submitting your mortgage application.

Organise your finances

Showing that you have your finances under control now will help with your mortgage application. If you can show that you have settled your debts then you have a much better chance of being approved than if it is still outstanding. A debt problem that has been solved is far better than one that is still ongoing. Make sure that you always make your payments on time and if possible, set direct debits so you don’t risk missing any.

Demonstrating good financial management is also especially important for first time buyers who have never had a mortgage before. You might not have borrowed much in the past and need to show that you are a responsible person to lend to.

Consider a mortgage broker

You should be aware, however, that some lenders will still reject applications even if you have settled your debts. Using a mortgage broker that specialises in bad credit mortgages can help to increase your chances of being approved.

Getting a bad credit mortgage

Many people, understandably, think that getting a mortgage with bad credit is an impossible feat. A bad credit rating can be like a constant weight around your neck, often unfairly, and doesn’t present an accurate picture of you as an individual. Sure, you might have a bad credit rating, but there may have been a variety of factors out of your control which caused you to get that credit rating in the first place.

You might have missed out on a credit card payment because you had to pay for emergency repairs to your car, for example. Similarly, you could’ve had a CCJ awarded against you for some reason or another and your credit score hasn’t recovered since. You could have even had serious health problems or gone through an addiction, and gone bankrupt as a result.

Your average mortgage lender, of course, won’t see any of this. They’ll only see a number on a screen telling them not to give you a mortgage. It’s because of this that getting a mortgage with bad credit can be a difficult thing to do, but that doesn’t make it impossible.

Will I have to get a bad credit mortgage?

There’s no such thing as a bad credit mortgage. This is a common misconception – you’ll still be able to get a standard mortgage, but they’ll most likely have higher interest rates or extra charges, hence the term ‘bad credit mortgage’. They’re also known as ‘adverse credit mortgages’ or ‘subprime mortgages’.

The good news is that after a few years of paying back a bad credit mortgage your credit rating will have repaired itself to some degree due to your payments towards it (as long as they’re on time!). This means that you could move onto a better mortgage that has a lower interest rate in a few years, so don’t worry about being stuck on a bad credit mortgage forever.

So, can I get a mortgage with bad credit?

Yes. You’ll still be able to get a mortgage, but at the same time you’ll have to accept the fact that not every lender is going to be itching to give you one. Some high street banks might be averse to lending to you, but if you scout around enough then you’ll be able to find a lender who’ll look past your credit score and

Be careful when you actually apply for a mortgage too – if you’re rejected when applying for a mortgage this will only further negatively affect your credit rating, making it less likely you’ll be accepted for a so-called bad credit mortgage.

Couldn’t I just improve my credit score?

If you’re set against getting a bad credit mortgage, then there’s always the alternative of simply improving your credit score and then applying for a mortgage from one of the more popular, high street lenders. You can do this by paying off debts you owe on your credit cards, keeping your outstanding balances low and making payments for things such as rent on time.

This is, of course, a lot easier said than done. You might not be in a position to simply pay back debts that you owe just yet, and if you’ve got negative marks on your file such as CCJ’s or bankruptcies then these will remain on your file for at least six years – a time period you aren’t likely to want to wait if you’re looking for mortgages now.

Getting a mortgage with bad credit sounds a lot worse than it is, when in reality you’ll only have to deal with slightly increased rates, charges and deposits for a small time – as long as you make the payments to the bad credit mortgage on time, your credit score will take care of itself. This grants you the obvious benefit of being able to get a mortgage immediately, move on with your life and, if you wish to, change your mortgage in the future once your credit score has improved.

Can I Get A Mortgage With Bad Credit?

If you’re worried about getting a mortgage with bad credit, rest assured we help customers
every day just like you. Here we’ll cover:

  • How we helped a customer who’d had an IVA to get a mortgage and get on the property ladder
  • How we could help, by knowing which mortgage lenders accept bad credit applications
  • Why it’s best to go through a mortgage broker when you’ve got bad credit

Can you get a mortgage with bad credit?

We help customers do just that.
With Clever Mortgages, Mr D was able to:

  • Get a mortgage, even with a poor credit history
  • Secure a fixed rate of 2.99%
  • Find a 95% mortgage

 BalancePaymentRateTerm
New Mortgage113,050584.912.9922 Years

Completed 09/07/2019

Our client had been in an IVA, which started in January 2011 and was cleared in January 2017. Since the IVA, he’d managed to save money for a deposit towards a house purchase.
In the meantime he was renting, and paying £425 a month to his landlord.

A bad credit mortgage, with just a 5% deposit

We were delighted to be able to help him take that important step onto the property ladder, and get back on track. His deposit was only small, but we found a great deal on a 95% mortgage, at a very competitive rate for this level of 2.99%. This is a fixed rate for 2 years, after which we’ll be able to look at even better deals once he’s had that period to build some equity in the property.

Why should I use a mortgage broker?

  • Some mortgages for people with bad credit are only available if you go through a mortgage broker – we know the mortgage lenders who accept defaults
  • 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
  • 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

Getting on the property ladder might be possible, even with bad credit

If you’re wanting to know if you can get a mortgage with bad credit and if you’re currently in rented accommodation, you might be feeling keen to get on the property ladder, and start paying off your own mortgage every month, instead of someone else’s. But you might be worried that lenders won’t consider lending to you.

We’ve helped 1000s of customers, just like you with bad credit, to get on the property ladder.

When you apply for a mortgage, the lender will assess your application according to their criteria. Lenders all have their own guidelines, so there are often things that’d cause your application to be declined by one, but not by another. We help customers with bad credit every day, and we know the best lenders and products to look to for each individual situation.

Enquire with us about a mortgage with bad credit, and we could:

  • Try to find the right deal for you, even if you’ve got a poor credit history – many of the customers we help have found themselves in a bad credit situation, and might have been on a Debt Management Plan or in an IVA. We take great pride in helping customers when we can, to get a mortgage and get back on track financially.
  • Discuss with you the different options available – for instance, you might not have considered using a guarantor or applying for a joint mortgage, we can discuss what might give you the best chance of getting a mortgage on a better rate.
  • Make sure your application goes to the best lenders for you – not all lenders offer mortgages to people with a bad credit history, but we know which ones are most likely to say “yes”, and to give you a good rate when they do.

What next?

If you are looking for expert advice on getting a mortgage with bad credit, contact our team today. We will be happy to help advise you on what you can do to give you a good chance at taking that important step onto the property ladder.
We are experts in offering solutions to people with bad credit and can help if you need a hand with your next move.

A man ticks a box next to five starts under the title "credit score"

Ways to improve your credit score

A poor credit history can complicate things when trying to get a mortgage. Many mortgage providers won’t lend to someone who has suffered from bad credit regardless of their situation now. If you’re confused about credit or you’ve been unsuccessful in getting a mortgage then you should work to improve your credit score.

Unfortunately, there’s no quick fix for your bad credit score. Your credit history has been built up over time and the things that have had the biggest impact will be different for everyone. You will need to demonstrate over time that you can continually make payments in full and on time. Any negative information that might be on your credit file such as CCJs, an IVA, late payments or bankruptcy will exist on your credit file for 6 years since the date they were recorded. You might need to wait until these have disappeared from your file if they are preventing you from getting approved.

Luckily, there are some things you can start doing right away to help improve your credit score:

1.     Check your credit report

The first step to improving your credit is to know exactly what your situation is. You should get into the habit of regularly checking your credit score. This is so you can make sure the information about you is accurate and up to date. You will also be able to see how your credit score improves over time as you start making more positive financial decisions. Checking your credit score is free through a credit reference agency including Experian, Equifax or Clear Score.

2.     Plan to pay off your existing debt

Try and pay off all your existing debt as soon as possible. If you can’t do this yet you should create a plan so you know when you’ll have this paid off. If you use any savings to help pay off debts then make sure you still have some money aside for emergencies. This will help you to avoid getting into any debt again. Paying off your current debt will help to show lenders that you’re working to rectify your current financial situation.

3.     Be cautious when using credit cards

Cancelling any credit cards that you no longer use can help to show that you’re intending to borrow less. It can also stop the temptation to use them at any point. On the other hand, if you don’t have a credit card, taking one out and managing it properly can help to improve your credit score. You should only do this if you know you can afford to make repayments on time and in full.

4.     Have some responsible credit

If a credit card is not appropriate for you, or if you can’t get approval for one, then taking out a small form of credit might be a better idea. This could be a mobile phone contract or store card. Providing you manage these well it can show lenders that you can pay bills responsibly, helping you to show that you can be trusted with a bigger loan.

5.     Get on the electoral roll

Another way you can help to improve your credit is by making sure you’re on the electoral roll. If you’re not then you should register as soon as possible. Although it’s not compulsory to vote, having your details on the electoral roll allows lenders to easily verify your identity and address. This can have a positive impact on your credit score.

6.     Consider bad credit finance

If you can afford to pay higher interest rates and potentially put down a bigger deposit, then bad credit finance options such as a bad credit mortgage might be for you. These are designed for anyone who has a low credit rating and unable to get competitive rates for finance. The benefit of paying higher mortgage rates, for now, is that providing you pay on time in and full, it can demonstrate that you are someone who can be trusted to lend to. If you can continue to prove this you will increase your chances at being eligible for more competitive interest rates in the future.