Can I get a Mortgage if I have Bad Credit?
Securing a mortgage can be challenging. House prices have increased considerably over recent years and lending criteria has continued to tighten since the 2008 credit crunch. Regardless of the size of your deposit, or the type of property you intend to buy if you have a bad credit rating it will limit the number of lenders prepared to offer you a mortgage.
If you apply for a mortgage and are rejected it is likely to worsen your overall credit rating. Therefore, if you have any concerns regarding your credit history or overall credit score, you should seek advice from an independent mortgage broker before making any applications. They are well placed to identify the most suitable lender based on your unique circumstances.
There are many factors that contribute to your credit score. Some of the more common reasons for bad credit ratings include:
• Missing a mortgage, loan, or credit card payment
• Defaults & County Court Judgments (CCJs)
• Frequent use of payday loans
• Previously being declared bankrupt, entering into an Individual Voluntary Arrangement (IVA) or Debt Management Plan (DMP)
It is often assumed that if you have never taken out any credit or loan agreements then you are automatically given a good score but this is not the case. The truth is that with no credit history you cannot demonstrate good credit management and therefore unlikely to have built up a good credit score.
There are various services online that you can use to access your credit score and your credit report. The most comprehensive one to use before applying for a mortgage is called ChekMyFile. Further information on this can be found in our FAQs.
Here at Aspire Financial Services we treat each client as an individual. Our goal is to make it easier for those with adverse credit to obtain a mortgage, whether you’re a first-time buyer or a homeowner looking to move or remortgage.
We have good relationships with the specialist lenders that are more understanding of adverse credit. It all begins with a complete understanding of your circumstances so we can then identify the most suitable lender that will consider working with you.
If your credit history is less than perfect or you’re struggling to secure a mortgage for any other reason, talk to us. Book a free 30-minute no-obligation consultation and let us help you with your mortgage goals.