Bad Credit Mortgages: Can I Get a Mortgage

When it comes to Bad Credit Mortgages, High Street Banks and Building Societies usually take a cautious approach to who they’ll lend to. Many of those Banks and Building Societies only want to lend to people who have perfect Credit History. Luckily, there are specialist Advisors and Lenders who are more flexible when it comes to Bad Credit Mortgages.  

Finance Advice Centre realise that financial difficulties can affect anyone at any time and usually without warning. Also, we often hear stories where people have gone into debt through no fault of their own. These are just two of the reasons why we take pride in specialising in bad credit mortgages. We want to make sure you get a second chance!

Having previous Defaults, County Court Judgement’s (CCJ’s) or even Missed Payments can often make it difficult to get a mortgage. So too can previously being declared Bankrupt, having an IVA or even having a home Repossessed.  

Searched Bad Credit Mortgages Successfully

We believe it’s only right that they have the opportunity to get back on the property ladder. They should also be able to get themselves a better remortgage deal if they have adverse credit.

We specialise in the following types of bad credit mortgages:

CCJ’s

Many people have a CCJ on their credit file. This is more common than most people think, we work with lenders that can consider all types of scenarios. Even recent CCJ’s are considered and in some cases, the lender will ignore them.

Defaults

Default’s on your credit file is the most common adverse credit we see. We have helped many clients and work with lenders who will consider all types of circumstances including recent Defaults. In some cases, they will ignore them if under a set amount.

Missed Payments

We work with lenders that have a flexible approach to missed payments; the dates and amount of missed payments would be key to the options available to you. Some lenders manually underwrite your application so may not fit on the high street. However, it may pass with some specialist lenders.

IVA

If you are currently in an IVA your options may be limited and would need to be settled as part of the application plus you’ll need to provide a good-sized deposit. When you have satisfied the IVA and the discharge date becomes older, there are more lenders that would consider your application.

Debt Management Plans

We deal with lenders that would consider lending to client’s that are currently in a debt management arrangement. Also, client’s that currently have payment plans set up with creditors. In some cases, the arrangement or debt management can stay in place and does not have to be cleared as part of the application.

Bankruptcy

This is an area we have helped many people, mainly due to the lender products we have available and our experience. We work with lenders that would consider a mortgage application from the first day you are discharged. As the bankruptcy discharge date gets older, there are more options available.

Repossession

A mortgage after a previous repossession is possible. The date of the repossession and if there is any debt outstanding will be key to your options available.

Bad Credit Mortgage Specialists

Although the majority of High St lenders want you to have a perfect credit history, it’s refreshing to know that there are more and more lenders coming back into the market who will provide bad credit mortgages again. Interest rates are unlikely to be as good as standard mortgages; specialist lenders in the bad credit mortgage market will usually charge higher interest rates. This is sometimes described as a ‘subprime mortgage’, ‘adverse credit mortgage’ or ‘non-conforming mortgage’. The good news is, in many cases, it can be done.

What Interest Rates Will Be Offered

While the lenders clearly want to keep some degree of separation between their standard and bad credit mortgage divisions, the deals they are offering are less restrictive than they have been in the past. Most lenders will often cut the interest rate if borrowers keep up a good payment record and after two or three years, it may be possible to switch to a standard rate mortgage.

The lender will usually set the interest rate based on how much risk they think you pose to them. Before any interest rates are discussed, a Decision In Principle is normally needed. However, a mortgage may not be available in all cases straight away. However, if it’s not available at the time of your application, we will always let you know exactly where you stand. We will always do our best to let you know when you will be able to get a mortgage and at what sort of interest rate. Our commitment to you is that no matter what your credit history looks like, we will never leave you wondering. We will always let you know whether or not you can get a mortgage and when.

Simply complete the enquiry form on this page and we’ll get an Advisor who specialises in your type of enquiry to call you at a time that’s convenient for you. Alternatively, if you’d like some advice immediately, call us on Freephone 0800 103 2655 or 01332 821 340.