As a specialist broker, we arrange mortgages for people who have a wide variety of mishaps lurking in their credit file including including CCJs, defaults, missed mobile phone payments, mortgage arrears, previous IVA and bankruptcy, all of which contribute to a significantly damaged credit score.People who have a bad credit rating can get a mortgage, but you will need to cobble together a sizeable deposit. If your bad credit history is regarded as light or moderate, your options are reasonable, but if severe, your choice is somewhat diminished.
Having a less than squeaky clean credit history does seriously set back your chances of buying your first house or moving to your next property. It’s estimated that one in four people, or five million households, would be refused a conventional, high street mortgage because they’re suffering from a low credit score.
There are many reasons why you could become blacklisted and classified as a non standard borrower. Late payments on credit cards, mortgage repayments, disputes over invoices and oversights with household bills and other events such as redundancy and divorce can lead to a low credit score. When looking for a mortgage, a poor credit score can be a major obstacle.
The vast majority of banks and building societies only grant their approval to those who can turn in a flawless performance when it comes to previous borrowing. However, there is no universal rating or blacklist, so while one lender may turn you down, another might be more welcoming.
Prior to the credit crisis in 2007, lenders had a much greater appetite to lend to those with a wayward past, but today the lending landscape is very different. Something as trivial as forgetting to pay a parking fine could have a catastrophic effect on you being able to get your hands on the funds you need to secure a property. In recent months there have been signs of a slight thaw with a small number of lenders looking to differentiate themselves from others by being more amenable to those with a less than perfect borrowing record. These lenders employ specialist underwriters to individually examine each mortgage application rather than solely relying on an automated, computer based decision making system. Underwriters are tasked with analysing each application they receive and will examine the prospective borrower's situation and assess their ability to repay a mortgage. They will look at how the applicant has conducted their recent finances, their current employment situation and they have scope to say yes to an application, where another lender might have turned it down bluntly.
Getting expert advice is of paramount importance. If you complete our no obligation enquiry form, an expert mortgage advisor who has access to all the adverse credit or sub prime mortgage lenders in the UK, will contact you to discuss your options.