During and since the recession of 2008, more and more people have become the victims of a poor credit file. There can be many reasons for this, but it doesn’t mean that you are prevented from applying for a mortgage or a re-mortgage.

There are many mortgage lenders in the UK that have flexible criteria which is sensitive to people who have suffered bad, or poor credit. We believe that people in these circumstances will stand a far higher chance of getting the right mortgage by using a specialist adviser. A specialist adviser will take the time to understand your circumstances and will assist you with what you are looking to achieve.

At Specialist Mortgage Online it is our goal to help as many customers as possible get mortgage advice tailored to their individual circumstances by connecting them with one of the large panel of advisers ready to help now.

Can I get a mortgage with bad credit?

Yes, it is possible.

Our advisers have access to a wide range of bad credit mortgage lenders and have years of experience in finding people just like you, the right type of deal for them.

Here’s an overview of what it involves, what you will need to do, and how the bad credit mortgage advice you receive from our advisors, coupled with their support, could get you on the way to a successful mortgage application.

What causes poor credit?

There can be many reasons that you have bad or poor credit. It’s the job of our advisers to understand what caused it, and then help better present it to a mortgage lender.

The aspects listed below could be the reasons that you have a bad credit rating and have been unable to secure a home loan with the traditional high street lenders.

  • No credit history
  • Low credit score
  • Late payments
  • Missed mortgage payments
  • Defaults
  • CCJ’s
  • IVA’s
  • Debt management schemes
  • Repossessions
  • Bankruptcy

It could be that you have one, or even a combination of the factors shown above recorded on your credit profile.

However, it needn’t mean you can’t take advantage of many of the mortgages for people with bad credit currently available on the UK market.

Our advisers have helped clients from a wide range of backgrounds with many different circumstances to successfully secure a mortgage.

They know how to get a mortgage for bad credit applicants, so call us today to be matched with an expert who is best equipped to help you get the deal you need.

Why is it so hard to get a mortgage with bad credit history?

When you apply for any type of finance, be it a loan, mortgage, or credit card, the lender will check your credit scoring. This  helps them to assess the risk and then give a response based on your past history.

However, much of this is automated and is based on a snap shot of your circumstances on a specific day. It doesn’t necessarily reflect the full picture of your circumstances and may not always favourably reflect your current status and ability to repay.

You might be in a better position today, because of a new job, or a bonus or a whole host of other reasons. There are a number of lenders who are prepared to consider these factors and will rely on a human making a decision rather than a computer programme. Our advisers can help you properly reflect your circumstances and give you a greater chance of obtaining a mortgage.

Our panel of mortgage brokers work with multiple customers each month and help match them up to mortgage lenders who are prepared to lend to people with poor credit.

There are even some mortgage lenders that don’t credit score, and instead just look at the credit report, with no scoring.

How our advisers work

Because our advisers work as specialists in the bad credit mortgage market, it means they know the different requirements of the various  lenders’ criteria therefore giving you the best chance of proceeding with a successful application. That means it should be a lot smoother for you.

Your application won’t be submitted multiple times to different lenders on a hopeful basis, creating multiple checks made against your file.

Your adviser will professionally  review your information, support you in properly structuring your application, and then submit it to a lender who is most likely to consider you for mortgage.

This bespoke and tailored specialist approach means you have the best possible chance of securing the mortgage that you need and can afford, even with a poor credit history.

Can you get a mortgage with bad credit this year?

If you take the support on offer from our panel of expert mortgage brokers, the entire process should be as simple as possible, from start though to finish.

All you need to do is follow these simple steps.

  1. Call us or complete an enquiry form
  2. One of our team will take some very brief information from you
  3. You will then be introduced to a suitable adviser for you
  4. You will need to supply a copy of your credit report (we will show you how)
  5. Our advisers will assess your case on an individual basis
  6. They will then research the market against your personal circumstances
  7. A mortgage application will then be placed with the most suitable lender

Why do you need to submit your credit report?

This enables your adviser to give you the most accurate information on what mortgages are likely to be available to you. It also means that you will not have an unnecessary credit search logged on your credit file.   This is an extra step that we take as we want to make sure that an enquiry won’t adversely affect your existing credit score.

By running the credit search yourself, it won’t record into the system in the same way it would if a mortgage broker or lender was to do so.

If multiple credit searches are made, it can negatively affect your credit history, and we don’t want that to be damaged any further.

That’s just another reason why our advisers don’t take a scatter gun approach to applications, and instead assess your individual circumstances before placing an application with the right type of lender.

Getting your credit report is simple enough.

All you need to do is use a website such as Equifax or Experian where you can purchase a detailed copy of your credit profile. We recommend these two credit reference agencies because they are the two used most by UK mortgage lenders.

It will also provide your adviser with a detailed breakdown of payment history, helping them to help you in getting a poor credit mortgage.

What information should you prepare in advance?

As well as your credit history report, we also recommend some additional aspects in order to help your enquiry and application successfully proceed as quick as possible.

In simple terms, the more information you can supply, the better.

Once you are matched up with one of our bad credit mortgage advice specialists, your initial conversation with them will last around 40 minutes.

This friendly assessment lets them better understand your financial circumstances and lifestyle in more detail – all of which are really important for mortgage lenders.

The credit report you supply will only tell the adviser the basis (and hard) facts about your financial history. But it will let them build a picture before you supply the remaining information to help them create a fuller and more accurate picture of your financial situation and ability to borrow.

The types of information we recommend you try to prepare in advance which the adviser will be asking you about include:

  • Personal details
  • Postal address history
  • Monthly income expenditure
  • Employment/ Self Employment details
  • Credit and loan repayment commitments
  • Family life such as marital status and dependents
  • Adverse credit details

They could also request supporting information such as your latest bank statements, pay slips, or a self-assessment SA302 form if you are self-employed.

Having a complete a picture as possible will help your adviser in understanding the background of your poor credit history, and what you could afford today, and matching those details to the most appropriate lender.

To conclude, the more you can provide in terms of financial information, the better the adviser can help you.

But what is considered to be a bad credit score?

There isn’t actually one set-in-stone answer to this as different banks and lenders will score individuals in different ways.

In fact, some banks could even score your differently depending on what type of financial product you are applying for.

Our advisers have found that mortgage lenders are often more interested in the actual events leading to a poor credit history, than the scores themselves.

That gives our advisers some great insight into the criteria of different lenders which means their bespoke approach to presenting applications in a correct manner can lead to very high success rates.

However, we still do ask that you use the Equifax and Experian platforms as they are the only credit reference agencies that offer a full breakdown to the mortgage adviser and lender.

That full report lets lenders and advisers look past the actual scores and get into the detail of your credit history.

Don’t get too hung up on your credit score.

Our advisers have had excellent results with multiple clients, many of whom believed they had zero chance of ever getting a mortgage due to low credit scores.

The reason you got into bad credit in the first place, the circumstances, plus your ability to afford a mortgage today will be a lot more important.

Why won’t your bank offer guaranteed mortgages for bad credit?

There is nothing stopping you from applying to bank or high street lender, but many of them will decline you as they simply don’t have the appetite to lend to customers who have poor credit ratings.

We will match you with an adviser who has access to a wide range of lenders. They work closely with the lenders across the UK who specialise bad credit mortgages.

What happens once you are successful?

Once one of our advisers has helped you to find a suitable mortgage, they will regularly review your deal and personal circumstances.

If you have chosen a fixed rate mortgage, they will advise you on how to rebuild your credit over the term of the mortgage.

By practicing careful money management, over a period of time your credit history can be improved. Just because you have poor credit now, doesn’t mean you are always going to be that way.

By working with an adviser who understands you and your history, you could repair that credit and take advantage of improved deals in the future.

Once your credit rating has improved, you may wish to go back to the traditional high street lenders and re-mortgage onto a better rate.

Do bad credit mortgages mean paying high interest rates?

Not always.

In some cases, you may find yourself paying slightly more, but the poor credit mortgage lenders are still competitive when it comes to rates and fees.

During the initial research phase, your adviser will outline all charges, fees, and rate options to you in a mortgage illustration to help you choose the right deal.

How quickly can you apply for a mortgage?

Once you have been introduced to one of the expert mortgage advisers, they will outline the time frame of how long it will take.

It will depend on you a lot of the time, including how much information you can gather, and being able to provide all the relevant information  over the phone during the consultation phase.

The aim of our advisers is to provide you with an outcome and option inside of one week from your initial enquiry.

They will then look to obtain an agreement in principle (AIP) from a mortgage lender.

What is an Agreement in Principle (AIP)?

This is a mortgage lender saying that based on all the information provided they will be happy to lend to you.

The reason the word principle is used as the lender will still need to see supporting documents that evidence the financial information submitted in the application.

Providing your financial documents support the statements in your initial application, the mortgage lender will be able to present you with a final offer.

Obtaining an agreement in principle is the first step to getting a mortgage with poor credit. This is why it is so crucial to be honest and transparent with your mortgage adviser and provide them with as much information as possible.

How to get started

We hope that this has given you a useful insight into how to get a mortgage with bad credit.

If would like to talk with a specialist now, then please get in touch using the enquiry form or by calling us.

Our friendly team can then start working with you to give the best possible chance of getting the mortgage you require.

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