How our mortgage brokers help you get a mortgage even with a bad credit score
Bad credit mortgages allow anyone with a poor credit rating to get a mortgage. Our mortgage advisers discuss your credit situation and obtain a credit report before you apply for a mortgage. If there is anything on your credit report, we can look to rectify your bad score with some easy and simple tips. Our mortgage advisers are used to offering mortgage advice to clients who have bad credit scores and we can review any credit anomalies that may arise.
Having a low credit score doesn’t always mean you have bad credit
A low credit score is often common for young first-time buyers as they are not likely to have any credit cards or loans, or if they do it may be minimal. Sometimes you could have a bad credit rating through no fault of your own. For example, utilities or telecommunications providers could put missed payments or defaults on your credit profile. If you have taken out loans for friends or family and they miss a payment your credit rating is affected. Remember your score is dictated by the credit report company you use, but the lenders have their own internal scoring system.
Remortgaging with a bad credit score
Call one of our mortgage brokers if you are looking to remortgage but have a bad credit rating. We can advise you on how to proceed. We discuss which lenders could offer you a mortgage and review whether it is better to wait and apply later. Remember each time you apply for credit it is recorded on your credit history and your score could be affected if your application is rejected.
What affects a credit score?
- Your credit score may have been affected if you have been unable to pay credit card bills or personal loans.
- If you have been bankrupt or had to be put on a debt management plan.
- If you have missed payments, defaults, county court judgements (CCJ’s), individual voluntary agreements (IVA’s).
How to improve your credit rating
- Go on the electoral roll.
- Use low percentage limits of your credit card.
- Pay bills on time.
- Don’t fall behind on debt payments.
- Take out loans with a guarantor.
What to know about bad credit mortgages?
- Interest rates may be higher if you take out a mortgage with bad credit.
- Government schemes such as Help to Buy and Shared Ownership may not be offered to you.
- Lenders may require larger deposits than other mortgages.
- Bad credit mortgages are not normally available to anyone who has been made bankrupt in the last six years.