Yes, you can get a mortgage with bad credit, but the number of lenders and mortgage products you can choose from will be less than someone with a good credit score. High street banks are most likely to decline those applying for a mortgage with bad credit. However, not all lenders are as strict, building societies and specialist mortgage lenders usually offer more flexibility for those with a bad credit history. Lenders usually charge higher interest rates for mortgages for those with bad credit because of the potential increased risk of default.
Take some time to repair your credit score, making consistent payments can help you to do this. Read more about how to improve your credit score using a mobile phone.
When you have a bad credit history its important you try to show the lender that you may not be as great a credit risk. A larger deposit can help to show this. Most lenders will want at least 25% for a mortgage with bad credit.
Lenders offering bad credit mortgages usually have these underwritten by human beings. This means they can apply context as to how a bad credit situation occurred. For example, life events such as divorce and illness can greatly impact your finances and lead to a temporary disruption to your ability to repay credit on time.
Mortgage brokers remove a lot of the paperwork and hassle of getting a mortgage, as well as helping you access exclusive products and rates that aren’t available to the public. Mortgage brokers are regulated by the Financial Conduct Authority (FCA) and are required to pass specific qualifications before they can give you advice.
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Your home may be repossessed if you do not keep up repayments on your mortgage.
Based on our data here are the mortgage lenders that will currently consider those with a range of credit issues and histories:
Minor credit issues
Lenders happy to accept bad credit mortgages will look at your credit score and the details of your credit history. Lenders will judge different types of bad credit differently, for example a missed mobile phone payment is judged differently to a CCJ. Some bad credit mortgage lenders allow for a specific number of CCJs over a set period of time, others will consider those with bankruptcies while other will exclude this. Finding the right lender that suits your credit history is greatly assisted by speaking to a mortgage broker.
Our preferred mortgage broker Mortgage Advice Bureau can help you to find the right lender to suit your needs.
LOQBOX helps to grow your credit score while you save. Decide what you could save in a year. They lock away a 0% loan for that amount in your LOQBOX. You pay off the loan over 12 months, growing your credit score as you go to unlock better borrowing. Once your loan is repaid, you release every penny into a new bank account for free. Or into an existing account for £30.
From expected profit rate to home purchase plans, there are a number of terms you will have to know if you are to consider a provider which complies with Islamic banking principles. Also known as Sharia’a banking, we explain below how this works.
From expected profit rate to home purchase plans, there are a number of terms to consider when using an Islamic banking provider.
Open Banking is a practice that allows you to securely share your financial data with authorised third-party providers, such as budgeting apps or other banks, through APIs. Depending on the app or service, you can also give them permission to make payments directly from your account.
Open Banking is a practice that allows you to securely share your financial data with authorised third-party providers such as apps or other banks, through APIs
If you are in the process of buying or selling a property, chances are you have come across a host of legal jargon. From a BACS Transfer to Apportionment, there are many terms which need explaining. Below, our commercial partners ULS have summarised some of these terms.
If you are in the process of buying or selling a property, chances are you have come across a host of legal jargon. Read our glossary to find out more.
Whether you are looking to invest for your future, save for retirement, or find your perfect mortgage you have probably come across a term called inflation. With its widening effect, it is important to understand what inflation is, why it is necessary, and how it affects the economy.
Whether you are looking to invest for your future, save for retirement, or find your perfect mortgage you have probably come across a term called inflation.
Looking for a new mortgage? Nationwide Building Society should probably be on your radar. Voted as one of the best mortgage providers at the annual Moneyfacts Consumer Awards, Nationwide has a lot to offer, but just what can you expect from Nationwide mortgages? Here’s everything you need to know
Voted as one of the best mortgage providers, Nationwide has a lot to offer borrowers, but just what can you expect from Nationwide mortgages?
Fixed rate mortgages are typically the first port of call for borrowers, offering rate certainty and set repayments that can make the process of homeownership more streamlined and potentially cheaper, too. But the question is, for how long should you fix your mortgage?
For how long should you fix your mortgage? This guide will discuss your options in more detail.
Looking for a new mortgage? NatWest is probably on your radar. Here’s everything you need to know about NatWest mortgages, and you can see where they rank against their peers by checking out our mortgage charts.
Looking for a new mortgage? NatWest is probably on your radar. Here’s everything you need to know about NatWest mortgages.
As one of the biggest mortgage lenders in the UK, Halifax has probably come up in your search for a new mortgage deal. But what can you expect from Halifax mortgages? Here’s the lowdown on everything you need to know.
As one of the biggest mortgage lenders in the UK, Halifax has probably come up in your search for a new mortgage deal. But what can you expect from Halifax?
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