Bad Credit Mortgages

Bad credit mortgages are actually just normal mortgages. The only difference is the lender that is offering it to you. Most big high street banks and building societies have strict criteria around any adverse. In simple words bad credit on the credit file. It is important to fully understand any issues on the credit file before starting your mortgage journey.   

What is bad credit?

When we talk about bad credit or adverse credit. It basically covers a range of situations – from things like not paying your mobile phone bills or credit cards on time to more serious situations like facing bankruptcy or dealing with IVA’s.

When lenders say someone has bad credit. It usually means their credit rating isn’t that great. This could be because they haven’t built up much credit history. It could be due to their credit report showing issues like being late on payments, having defaults, dealing with CCJs (County Court Judgments), facing bankruptcy, or even having debt relief orders. All of these things make lenders see the person as having a higher risk when it comes to borrowing money.

Can I get a mortgage with bad credit?

The simple answer is Yes. While having bad credit can sometimes make certain lenders cautious about offering you a substantial loan or even considering your application. There are niche lenders out there with more open and accepting criteria for those with poor credit or a low credit score.

We assist a wide range of individuals. First-time buyersthose moving on to their next property, people looking to remortgage, business owners, and even buy-to-let landlords. Our goal is to help them navigate the options available, considering the pros and cons. This way, when it’s time to apply for a mortgage with bad credit. They can feel confident that the lender they choose is likely to approve their application.

What are bad credit mortgages?

There’s not a specific product referred to as a “bad credit mortgage,” but there are lenders who specialise in working with individuals with poor or limited credit history.

Debt is actually quite common among many individuals, and having a credit score that’s not top-notch might not be the best situation when you’re looking for a mortgage. The good news is that it’s not an impossible hurdle. Quite a few lenders understand that life isn’t always smooth sailing. They set up their mortgage requirements to take into account situations, where your credit history isn’t flawless or where you have some debt. They’re looking at whether the debt is reasonable compared to what you’re earning.

Understand Your Credit File