Bad Credit Mortgage

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Bad Credit Mortgage - What you need to know

When it comes to getting a mortgage there are certain things that are likely to get in your way. One of the main hurdles has to be if you have bad credit. Many high street lenders are looking for those people who they see to be a “secure borrower”. Which means that if you are applying for a bad credit mortgage you are not in the best light.

Whilst bad credit is going to impact your ability to secure a mortgage, it doesn’t mean that it is impossible.

In fact, there are specialists out there who want to help you. Bad credit mortgage brokers are there to ensure that you can still get a mortgage with bad credit. They will guide you through the entire bad credit mortgage process as a whole. 

What types of Bad Credit can I get a mortgage with?

There are several bad credit mortgage lenders who will offer specialist products which are more understanding with their criteria. Bad credit mortgage lenders will even consider cases from individuals who have had arrears, defaults, county court judgements (CCJs), individual voluntary arrangements (IVAs), been placed on debt management plans or suffered bankruptcy in the last six years.

You will usually need to pay a slightly higher interest rate when you first take out the mortgage, as the lender will assume you are higher risk because of your previous adverse credit. But if you keep up with your repayments, and take active steps to improve your credit rating, there’s no reason when you in a much better financial position why you can’t move to a more favourable lender – We could even look at moving your from your bad credit mortgage lender to access a much better deal when you eventually come to remortgage.

Check your credit history

Been declined for a mortgage by a standard high street lender? Chances are that this happened due to the fact that they have seen something negative on your credit history. The first thing that you should do is to look at your credit history. Seeing where you could be going wrong. 

There are things that are going to impact on your credit rating. Some of which are going to take time to fix, such as late payments or overuse of credit facilities. But there are also some things that you can fix relatively quickly. Examples of this include mistakes or errors that could be bringing your rating down. Examples are; wrong addresses, or perhaps credit accounts being listed as open when they have been paid up and closed down.

You may even find that your credit rating can be impacted by whether or not you are on the electoral roll at your current home. Something that you may not think of, but that can make it harder to secure a mortgage.

Try to curb your spending

Once you have checked over your credit rating, you need to think about your spending. You also need to think whether there is anything that you can do to ensure that your credit accounts are paid up as quickly as possible. If you are finding it hard to manage your money, then you may not be able to create a savings account. However, you can always take a look at your spending and see whether there are things that you can cut out or cut down on.

It might not feel nice to think that you have to cut down on some of the things that you enjoy or that you like having in your life. But you need to look at the end goal. It might be tough for a few months, however, in the end you will have a house that you can be proud of.

Be realistic

It is great to stay positive about your chances of securing a mortgage in the future, but you still need to try and stay as realistic as possible. There is a good chance that you are going to find it harder to get a bad credit mortgage. However, it is not impossible. With the right advice and the right guidance, you will be much closer to being able to buy your own property.

It is not going to be a quick process, but by working with an expert you are likely to find the whole process that little bit easier. They can help you to process the main parts as quickly as possible and ensure that you have all the right documentation to hand, which will allow your request to be approved, and for you to get a few steps closer to owning your own home.

Speak to an expert about a bad credit mortgage

Once you have got a handle on your own spending, checked over your credit history and made any changes. Then is the time to speak to someone who can help you to apply for a mortgage with bad credit. 

It is worthwhile speaking to a bad credit mortgage broker. Their aim is to advise you on the best actions to take.  They can also advise you where you may be more likely to secure a mortgage. They can guide you through the process, helping you to do the right things to help boost your chances. 

Speak to us - Specialist Bad Credit Mortgage Broker

It can be stressful to find how best to obtain a mortgage with bad credit. However, this doesn’t mean that you should give up on your dreams of owning your own house. It may take a little longer and a little more work, but we can promise you that it will be worthwhile in the end. With our help, you can make sure that you have the best chance of being approved for a mortgage. Whether it is with bad credit, you are self-employed or any other reason that may make securing a mortgage harder for you.

Your home may be repossessed if you do not keep up repayments on your mortgage

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