Bad Credit Mortgages

We can help you find the best mortgage deal if you have a fair or bad credit profile.

• We have access to a wide range of adverse credit lenders 
• Bespoke lending based on your circumstances - not your credit score!
• Expert advice. Creative solutions

Mortgage Credit Repair Solutions For Bad Credit

If you have a less than perfect credit score and you are finding it difficult to get a mortgage we may be able to help.

We provide a personal service in helping you find mortgage finance. We understand that credit issues often come about through circumstances outside of our control.

Contact us if you can:

• Evidence a satisfactory bad credit explanation
• Have not incurred any adverse credit issues in last 12 months
• Can afford the mortgage/loan you are applying for

The lenders we work with do not use credit scoring, but they look at applications on their own merits.

We can source solutions for clients that are underserved by high street lenders. Taking a sensible approach to underwriting where your case is assessed on its own merits.

We have direct access to lender underwriting teams which means we can source competitive solutions quickly.

We firmly believe that short-term financial difficulties shouldn’t result in long-term financial exclusion.

Considerations:

Employment Status:- You need to have been employed for the last 12 months and be able to provide evidence.

If you are a contract worker, you have to prove you have been employed by the same employer during this time and you can provide evidence that the contract will be renewed.

For the self employed you must have been in your current business for a minimum period of 12 months.

Your deposit:

For property purchase the more you can put down as a deposit the better. The rate of interest you will pay will also typically reduce if you can pay down more.

If you are remortgaging an existing property, the lower the loan is to the value of the property then the cost of borrowing will be kept down.

Evidence of the source of your deposit if you are purchasing a property will be required. Gifted deposits are generally acceptable from lenders for close family members.

Case Study:

The client required a mortgage of £280,000 on a property valued at £390,000. The client was a successful businessman, but 4 years earlier when setting up his new business due to financial pressure his residential mortgage fell into arrears. His mortgage account was now fully up to date, but as a result of the previous arrears he now found himself with a bad credit record.

High street lenders who he had approached were not prepared to offer him a mortgage on the basis of his poor credit score, even though he now has a healthy income and a profitable business. Through sourcing a specialist lender, who took a pragmatic approach to the previous arrears, a suitable mortgage was sourced at the level of funding required.

How do you know if you have bad credit for a mortgage

Many people who come to us for mortgage advice often don’t realise they have a bad credit issue. A missed payment on a credit card or on a mobile phone contract could trigger a mark on your credit record. A common scenario is when people move abroad for a period of time and do not realise that they have outstanding credit commitments in the UK that have not been honoured. The default only comes to light when they return to the UK and apply for a mortgage or remortgage.

The best way to understand your credit profile is by obtaining your personal credit report. You can do this easily through various agencies including UK Credit Ratings who provide a 14 day free credit report service.

Your credit file will show your credit history over the last 6 years, and will document all your credit arrangements over this period showing whether you have made repayments on time. It will also show who has searched your credit file and the people you are financially linked to you.

From the data on your report you will be given a credit score out of 999. Many lenders use this score in assessing whether they are prepared to lend you money on a mortgage, loan or credit card.

How is my credit score for a mortgage calculated

Your credit score is calculated by a formula processed by credit reference agencies (CRAs) of which there are three in the UK - Experian, Equifax and Callcredit.

0 - 559 or 1 Star: This would tell lenders that this borrower has had severe problems in repaying back money from loans in the past. Lenders who use a credit scoring approach would could classify such borrowers as being 'very high risk'.

560 - 587 or 2 Stars: A credit score falling within this range might be viewed by lenders as “high risk”, as it would indicate that the borrower has had debt repayment issues in the past six years.

588 - 609 or 3 Stars: A credit score within this range might be considered as being a moderate risk to a lender – different lenders may take a different view on lending to people in this category.

610 - 634 or 4 Stars: A credit score within this range would be seen by lenders as presenting a 'low risk'- i.e. to date the borrower has not shown in the last 6 years significant issues with paying off their debt.

635 - 999 or 5 Stars: This range represents the highest level, and would be seen by mortgage lenders as showing a high level of creditworthiness and would be considered as low risk borrowers.

Our Process:

Let’s have a conversation – we find that blips in credit history are often a result of a one-off event or something out of your control where household finances are put under pressure. The bad credit mortgage lenders we work with understand that life is not perfect and that a common sense approach is needed to lending – not credit scoring!