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: 8th April 2021
Covid 19 Update – Due to the re-introduction of 5% deposit mortgages, this has resulted in lending criteria being relaxed for lower loan-to-value products such as 85% & 90% LTV products. This means that you are more likely to be accepted for a mortgage if you have a higher deposit, despite the credit impairments you may have.
If you have any credit impairments, its always best to arrange an appointment with a broker to get the advice you need to proceed with an application.
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.
That’s why we insist on you providing a copy of your Check My File credit report ahead of your appointment with one of our experts. Check My File use 4 different credit reference agencies and if you have a higher score with one reference agency, we can then find a lender that will use that credit score over the others.
You are likely to have less choice with regards to mortgage options, however, the options we present may suit your needs perfectly.
Bad/Impaired Credit - Quick Questions
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 M.A.I.N, you automatically present as a lower risk.
Mortgage rates for a first time buyer with impaired credit …
According to Which? Magazine & Moneyfacts in 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.
Due to the impact of Covid 19, certain products may not be available at this stage, please contact a member of the team to find out what options you have available.
Book Your FREE Appointment
You may have struggled to obtain a mortgage so far, but you haven’t seen an expert broker at M.A.I.N. Simply book your FREE appointment and we will be able to see whether we can find the deal for you. If it’s not possible, we will provide the advice you need to put everything in place to try again in the future.
You can book a telephone, Zoom call or face-to-face appointment and take one step closer to obtaining a mortgage.
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.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.