How to get a Mortgage with impaired credit
For those that have incurred a default or CCJ in the past, help is at hand. There can be a host of reasons why a borrower’s credit file is impaired, often through no fault of the client.
We guide you through the process to make things simple and stress-free.
What does ‘bad credit’ mean?
This can be due to a range of different circumstances and it’s always best to ask if in doubt.
You may have missed payments, defaults, or wrongly reported debts which appear on your credit file. It’s always best to check before you start planning to take out a mortgage.
Adverse credit can arise through a number of reasons – many are not the fault of the potential borrower (e.g. a missed parking ticket, a phone contract not shut down properly).
Having some ‘adverse credit’ on one’s credit file does not disqualify someone from taking out a mortgage.
Some lenders will specify how old, or how low, an element of adverse credit needs to be, for them to still consider a mortgage – for instance, nothing registered in the most recent 12 months, or anything under £300 can be ignored.
In some cases, a ‘high street’ lender may still be able to help.
Some of the ‘prime’ lenders may charge a higher interest rate – and further additional charges (e.g. application fees) may be payable.
A ‘prime’ lender may need to be used in the short-term – however, ideally, after a period of paying the
mortgage, and with no further elements of adverse credit, a high-street lender could be sought to take over the mortgage.
If you think that bad credit is preventing you from getting a mortgage, do get in touch – it’s worth checking your circumstances, as we have helped many borrowers in this situation. Contact us today to find out more.
Frequently Asked Questions
How long does it take to repair bad credit?
This will vary depending on the extent of outstanding debts, whether or not you have CCJs, and when they were incurred. It is usually better to aim to pay off outstanding debt obligations before you look to take out a mortgage. If you can prove regular earnings and have a deposit for your purchase, these are factors that will help to get your mortgage application accepted. Ask us for details on how you can manage your individual situation relating to credit status and mortgage needs – it may be easier than you think.
What else do I need to bear in mind?
When planning a property purchase, you really need to plan ahead. If you have credit issues, this is even more important, as there are steps you may need to take to improve your credit rating.
Do I need a deposit?
If you have credit status issues, saving for a deposit will help if you are trying to take out a mortgage.
We can help you to understand more about how bad credit mortgages work and if it’s right for you – contact us today to arrange an appointment!
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
