If your credit history isn’t perfect, certain high street lenders may choose not to lend to you. However, as we have access to over 70+ lenders, we expect to be able to find a lender for you. Of course, this does depend on your particular circumstances.
Can you get a Mortgage with bad credit?
Updated: 27th February 2020
Getting a Mortgage with bad credit is not easy, especially if you have defaults, CCJ’s or a bankruptcy in your credit history. As we have access to the whole market, we can assess your affordability and find a solution for you.
Each lender will have different parameters for you to meet. As we have established relationships with numerous lenders, we can apply for special dispensation, depending on the circumstances.
Each lender will carry out a credit check before offering you a Mortgage. However, if you have bad credit, depending on the amounts involved and the time since, you still may pass with certain lenders.
You are likely to have less choice with regards to mortgage options, however, the options we present may suit your needs perfectly.
How to get a Mortgage with bad credit?
There are a number of steps you can take to improve your chances of being accepted.
The first step is time. Marks on your record are likely to reduce in severity over time, especially if your financial situation has changed for the better. Therefore, if you can wait a while, it’s best to do so. But if you are worried about something that happened a couple of years ago, you may not need to be worried.
Consider your partner’s debt. If your partner does not have any debt or marks on their credit, they are likely to improve your chances of being accepted.
Repair your credit history. If you can establish a pattern of payments and responsible usage of credit, this will help to repair your credit history.
Present as a lower risk to the lender. If you apply when you have a stable income and offer a higher deposit, you will present as a much lower risk to the lender.
Be honest. If you fail to mention anything on your credit file, this can be seen as a massive issue and they are likely to reject you for that reason alone. I doesn’t matter what it is, you are always better to mention it.
Will you have to put a larger deposit down?
It depends on the circumstance of your credit and the lenders position of course. However, one way to reduce the liability for the lender is to increase your deposit. Therefore, the larger deposit you put down, the more likely you are to be accepted.
Where to get your Mortgage with bad credit?
You are likely to be rejected by a typical high street lender if you have bad credit. Of course, this does depend on the severity of your situation. A minor issue may still be accepted by a high street lender.
At Mortgage and Insurance Needs, we have established relationships with numerous lenders over the years and therefore, by applying for a mortgage through MAIN, you automatically present as a lower risk.
Best bad credit Mortgage rates for a first time buyer …
According to Which? Magazine & Moneyfacts, September 2019, based on a two year fixed rate deal and a 95% loan to value ratio. Yorkshire Building Society offered a rate of 2.79% and had been known to accept individuals with arrears and CCJ’s.
We do have to highlight that rates do vary and lenders may change their criteria at any stage. However, the figures above should give you an idea of what to expect.
Best bad credit Mortgage rates for a home mover …
Again, according to MoneyFacts, figures in September 2019 had Yorkshire Building Society as being one of the most promising lenders. Based on a two year fixed rate deal and a loan to value ratio of 75%. They have been offering an initial rate of 1.57%.
Again, we must highlight that rates may vary and the lender may also adjust their criteria at any time.
Book Your FREE Appointment
If you’re worried about getting a mortgage with an impaired credit rating, don’t waste time worrying, just book your free appointment with a broker and see how we can help you.