Buying A House With Bad Credit

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Wanting to buy a property when your credit score is poor?

For anyone wanting to buy a house, one of the first things to consider is credit scores and how a credit score affects the mortgage lenders willing to offer a loan. Buying a house with bad credit can make the process more difficult, and lenders may have more requirements, but it is possible. Finance Advice Centre know that bad credit isn’t always a sign of bad money management and we have the resources, contacts, and knowledge to help potential homeowners get onto the property ladder.

Bad credit may have been caused by CCJs, missed payments, having an IVA, being declared bankrupt, or even having a home repossessed in the past. There is a limit of time these will stay on a credit score, but we can offer the best advice on how to buy a house, even with a bad credit score.

Bad credit mortgages

Strictly speaking, there is no such thing as a “bad credit mortgage”, instead, there are lenders who are more likely to offer home loans for bad credit. These loans are also referred to as subprime mortgages or adverse credit mortgages, and will likely have higher interest rates, require larger deposits, or have more requirements from the applicant for payslips and other forms of proof that the loan will be repaid.

It is recommended that anyone applying for a bad credit mortgage should be earning more than £15,000 per year and should be able to pay for at least a 15% deposit on the property they are purchasing. Keep in mind that this helps the lander as well as the borrower – it is in the lender’s best interest to get their money back, which means they want the applicant to be able to make payments! Bad credit mortgages are designed specifically to help people who might have struggled in the past with payments.

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We work with high street and other lenders so you’ll get access to some the best deals that you may be able to apply for.

About us

Applying for a bad credit mortgage

At Finance Advice Centre, we have access to “whole of the market”, meaning we can access all lenders including high street banks, “challenger banks”, and building societies. We can find the best deal from a country-wide selection of lenders. Not only do we have access to all these lenders, we also have the knowledge to advise you on which mortgage is best suited to your situation. Different lenders have different credit score thresholds, requirements, and policies. With our experience and expertise we can find the lender right for you.

Our expert team loves working with complex mortgage cases and have specialised in helping our customers get excellent mortgages for bad credit or in difficult situations.

You can get advice and assistance from us in three easy steps:

  1. Call us on 01332 821 340, chat to us on our Zendesk Chat, or fill in a contact form and let us get back to you
  2. One of our trained advisors will talk to you about your needs, your circumstances, and what you are wanting to do. We will discuss your options and answer any questions you might have
  3. Your advisor will look for the best lender for you and will either contact you to discuss options going forward or complete the application for you! All you need to do is relax and let us find you the best possible deal.

Interest rates with bad credit

Although it is likely that interest rates will be higher than normal on a bad credit mortgage, lenders are offering better deals now with decreasing interest rates for people who pay on time and are able to maintain a good credit record for a few years. After a few years it is even possible to switch to a mortgage with standard rates if payments have all been prompt and paid in full.

There are a lot of factors that lenders must consider before offering a home loan, and rates are not all fixed. A Decision in Principle is needed before applying for a loan and even then, a mortgage may not be immediately available. To help you navigate your way through applications and the various interest rates that might be available, we offer comprehensive advice and up-front and honest discussions. We ensure you are fully informed throughout the process and all your questions are answered.

Preparing for a bad credit mortgage application

Although it can take a few years to work a credit score back up again, there are small things that can be done to improve a credit score short term and make your application more attractive to potential lenders. It is always best to be fully prepared, and the best way to do that is to get everything together that you might need to support your application.

  • Make a real effort to repay any debts
  • Look through your contracts and remove old or unnecessary ones
  • Re-evaluate the necessity of a shared account if it is affecting your credit score

With a bit of work and a little help from Finance Advice Centre, we can find the right mortgage for you.

Why use us?

From the information you provide to us, our experts will search the market and find the most suitable products for you. If you are happy with the product on offer, we will handle all the necessary paperwork for you, including any relevant applications, to ensure that everything runs smoothly for you.

Quick service

From just a few minutes completing some basic information, we will quickly search for suitable financial products for you.

Expert advice

We’ve helped thousands of customers secure financial products and service so you know that you are in capable hands.

Reduced stress & time saving

Choosing the right financial product is time consuming and can be stressful, so remove much of this by putting it in the hands of one of our financial experts.

Reliable service

Whatever type of financial product or service you are looking for, our service is reliable and always matched to your own personal circumstances.

Our approach - and how we do it

Enquire

We love speaking with our clients. Either give us a call or fill in one of our contact forms. Remember, we love a challenge!

Discuss

One of our Advisors will then find out what you’re looking to do, discuss your options and answer any questions you may have.

Relax

Your Advisor will find the best option for you and help arrange things. You then sit back and relax while we do the rest.

Ready to assist you.

Choosing a financial product or service, such as a mortgage, remortgage, loan or insurance can be daunting and your choice is a decision you need to get right. For this reason, it is vital that you get impartial advice from competent and qualified advisors. Whether you are a first-time buyer, looking to remortgage, hoping to remortgage or even buy a property to let, needing a loan or insurance this is where our advisers excel.

Be reassured that our aim is to guarantee reliable financial advice appropriate to any individual that makes contact with us. Through our network of contacts, we have access to thousands of financial products, from mortgages to loans to insurance, so we are confident that we’ll find one to suit you.

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See what our customers think ...

What a Fantastic Service from start to finish. Great customer support from Ben Patten & Joe Frayne, superb product knowledge and exceptionally responsive to emails/calls, we can 100% recommend the Finance Advice Centre Ltd , they got us a great deal on a mortgage with suited life insurance, especially during this very difficult Covid 19 time ……

Ian Stamp

From start to finish, Greig and Emily were very helpful with our mortgage application. The advice Greig gave us was very clear and informed. They were always available either by phone or email to answer any questions we had. The whole process was made a lot easier because of the work they did. Would thoroughly recommend

Ross Nightingale

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We’ll put you in touch with impartial advice from an expert mortgage advisor who will help secure you the best mortgage deals available.