Poor or Adverse Credit
It can feel challenging when you are trying to get a mortgage, but this can feel so much harder when you have what is often referred to as bad, poor or adverse credit. Although it should be noted it is not impossible.
There are a number of Mortgage Lenders who actually approve mortgage applications manually and realise that sometimes life can throw us curve balls meaning our credit scores decline.
The type of words you might hear in relation to bad credit, are things like CCJ, IVA, Debt Management plans, bankruptcy or missed payments – none of which preclude you from getting a mortgage, but it can feel a little more tricky and daunting.
We understand that finding a Mortgage Lender who is prepared to lend you money may not be easy, often the paperwork is confusing and rather complicated – so we aim to help guide you through this process and get a mortgage application approved. We take the time to know which Lenders will listen to your reasoning and process your application accordingly.
Bad Credit Mortgages
You may have seen people talk about getting a bad credit mortgage. Officially, bad credit mortgages do not exist, the term is used to describe mortgages for which you are likely to be approved if you have a bad, poor or an adverse credit rating.
This type of mortgage, generally comes with higher interest rates, allowing lenders to offset the risk of lending money to someone with a previous bad credit rating, they may also could include some additional restrictions such as a maximum age limit for the person applying.
Do not panic – if you have bad credit you may still be able to get a mortgage
The term bad credit is used to describe a person who has a poor, low or adverse credit rating, either because they have no credit history, or because the credit history includes late payments, missing payments, CCJs, bankruptcy, debt management plans, or debt relief orders. So yes you may be able to get a mortgage but there are a number of things that will need to checked first.
Firstly we will do an Affordability Assessment, something every person going for a mortgage either standard or with bad credit has to do. A Mortgage Lender wants to see that you can realistically afford to pay back the mortgage loan. An affordability assessment takes into account:
- Credit score and report
- Employment status, level of income
- Any other sources of income
- Money available including savings
- Level of Debt
- Whether you live within your means (are you always in your overdraft?)
- Monthly expenditure
If you’re looking for a bad credit mortgage because you have bad, poor or adverse credit and want to find out more about how we can help you get a mortgage in order to buy a house, arrange to talk to one of our Advisors who will talk you through the process and the next steps.