When it comes to bad credit mortgages, some banks and building societies can take a very cautious attitude to who they’ll lend to. Some lenders only want to deal with people who have faultless credit histories, perfect work records and large deposits. However, at Finance Advice Centre we live in the real world, financial difficulties can affect everyone at any time and usually without warning.
Don’t Despair!
It’s no secret that getting a mortgage with bad credit; defaults, CCJ’s, missed payments or bankruptcy on your record can be challenging. Here at Finance Advice Centre, we understand that people can get into debt through no fault of their own, our advisors are trained with complex cases in mind and are able to help people with bad credit onto the property ladder. We realise that financial difficulties could affect anyone at any time without warning, we will work with your bad credit to find the right lender for you.
The good news is that more and more lenders are appearing in the market that will offer adverse credit mortgages. When applying for a bad credit mortgage you may expect the interest rates to be higher than standard. However, lenders are less severe than they have been in the past with some high street lenders taking this into consideration.
Look at the following examples of when we’ve been successful getting mortgages for our clients:
CCJ’s
Many people have CCJ on their credit file and 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 what might not fit on the high street, 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 or 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 once you are 12 months discharged from a Bankruptcy, 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.
As you can see it is possible to get a mortgage with bad credit. However, it is very important that you speak with one of our team as these are specialist enquiries so please get in touch by calling 01332 821 340.
We promise to let you know exactly where you stand throughout your mortgage journey. We believe that everyone deserves the opportunity to invest in their future and in the cases where a mortgage isn’t possible, we can work together to find what can be done to get you closer to your goal. Don’t shy away from your dream home due to bad credit, instead, give us a call and let us help you find the right lender to get things started.
So Just because one lender declines your mortgage application it doesn’t mean that another won’t look to accept. Whilst we can’t guarantee that we can help every time, we’ll hopefully be able to guide you in the right direction for the future.
What Next?
We love speaking with our clients so call us on freephone 0800 103 2655 or 01332 821 340. Alternatively, complete the enquiry form on this page and we’ll get an advisor to call you at a time that’s convenient for you.
We can’t wait to hear from you!
As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments
Think carefully before securing other debts against your home
