Bad credit mortgages.
Missed payments, defaults, CCJs or a debt management plan do not automatically rule you out. Phil started his mortgage career in specialist lending, so this is familiar ground.
What counts as bad credit?
There is no single definition. To one person it is a missed credit card payment two years ago. To another it is a default and a County Court Judgment. To a lender it could be something else entirely.
When lenders check your credit file they look at things like:
- Missed or late payments on any account
- Defaults and County Court Judgments (CCJs)
- Debt management plans, IVAs and bankruptcy
- Whether you are on the electoral roll
- How much of your available credit you are using
- How long you have held your accounts
Each lender has its own rules on what it will accept. The score you see on your own report is not the score a lender uses.
What will lenders accept?
It varies from lender to lender. Some will decline for a couple of missed credit card payments in the last six years. Others are more relaxed, and some specialist lenders are set up to consider applicants with adverse credit, usually at a higher interest rate.
Specialist lenders often have a person look at the application rather than relying on a computer score. That means a broker can explain the circumstances. There is often a life event behind bad credit, such as divorce, illness or a death in the family.
What tends to matter most
- How recent it is. Older problems generally count for less than recent ones.
- What type of account it was. Missed payments on a mortgage or secured loan are usually treated more seriously than those on a credit card or utility bill.
- How much it was for, and whether a default or CCJ has since been satisfied.
- Whether anything is still active, such as a debt management plan or IVA.
Bankruptcy is generally the hardest to place. Lenders usually want a minimum period to have passed since discharge before they will consider an application.
How we help.
We are not here to judge, and it is likely we have seen worse. All we are interested in is whether we can help you get a mortgage.
We ask for a copy of your credit report and the story behind it. Then we research which lenders are likely to consider you before any application is made, so you are not collecting declines.
If a mortgage is not possible straight away, we will tell you honestly and put a plan in place so you know what needs to change and when to come back.
What happens next.
Book a free call
Tell us where you are and what you want to do. There is no obligation and no hard sell.
See your options
We research lenders against your circumstances and explain what we recommend, what it costs and why.
We handle the application
We prepare and submit it, deal with the lender and keep you updated at each stage.
Offer to completion
We stay involved until you complete, and we are here when your deal is next due for review.
Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
Mortgages for people with adverse credit usually carry higher interest rates. Acceptance is never guaranteed and depends on each lender's criteria and your circumstances.
Still have questions?
Can I get a mortgage with a default or CCJ?
It can be possible. It depends on how long ago it was registered, how much it was for, whether it has been satisfied and what the rest of your file looks like. An old, small default may barely matter to some lenders. A large one in the last 12 months will take more work to place.
Will I pay a higher interest rate?
Often, yes. Lenders who accept adverse credit usually charge more than mainstream lenders. Many people take a specialist mortgage for a few years, keep their credit file clean and then move to a mainstream deal when they remortgage, although that is never guaranteed.
Will I need a bigger deposit?
Sometimes. The more recent or serious the credit problem, the more deposit a lender tends to want. We will tell you what is realistic for your situation.
Should I check my credit report before I speak to you?
It helps. A report that covers all three credit reference agencies shows what lenders are likely to see. You can get your credit report here.
Have a no obligation chat with us.
So that we can identify your options and the best next steps, book a free call. We will learn about you and your circumstances and put together a plan.