Most people are aware that if they want to arrange a mortgage with a high street lender they will need a good credit score – but what if you have bad credit registered? – We are experienced bad credit mortgage brokers and we have access to specialist lenders that will accept clients that have bad credit registered such as missed payments, defaults or County Court Judgements. Every application is judged on its own merits – therefore, it makes sense to speak with a bad credit mortgage broker who can provide you with tailored advice and guidance.
What type of bad credit do lenders accept?
Typical bad credit that we see registered against clients credit profiles that we can help with include:
Defaults – This is generally registered when you go into arrears of between 3 – 6 months.
County Court Judgement (CCJ) – This is where the credit provider has taken you to court to reclaim the debt.
Debt Management Plans – If you have a debt arrangement in place either directly with the creditors or via a 3rd party (Debt Management Company).
Discharged bankruptcy or Individual Voluntary Arrangement (IVA).
What mortgage lenders will work with bad credit?
We have access to many bad credit lenders such as:
Norton Home Loans.
The Mortgage Lender.
United Trust Bank.
Vida Home Loans.
Each lender’s criteria is different and to apply for a mortgage you will need a Credit Check done. Lenders will want to know when the bad credit was registered, how much was the debt for, what type of debt was it (i.e. missed payments on a loan or credit card) and have you managed to satisfy it.
What is a bad credit score?
In the UK, Experian is recognised as the largest Credit Rating Agency (CRA), and they score credit from 0 to 999. With a score of 881 to 960 being classed as good, and a score of 721 to 880 tagged as fair, 561 to 720 is classed as poor and under this is classed very poor Equifax rank scores between 0 and 700. Their ranking is as follows:
A score of 0 to 279 is very poor.
A score of 280 to 379 is poor.
A score of 380 to 419 is fair.
A score of 420 to 465 is good.
A score of 466 or above is excellent.
How quickly can I raise my credit score?
While there are actionable steps you can take to improve your credit score, nothing you can do will boost your score overnight. Take steps to pay on time, pay down your debt, and ensure you are on the electoral roll at your current home.
However, if you are looking to arrange a mortgage with bad credit, you should seek help, and a specialist bad credit mortgage broker is of value. By speaking to an experienced advisor they can discuss your credit profile and highlight potential areas that could be causing an issue to your score.
What is a bad credit mortgage broker?
As the name suggests, a bad credit mortgage broker specialises in helping mortgage applicants connect with lenders who offer loans and products for people with bad credit. Not every lender provides specialist Bad Credit Loans, and some only offer them via a specialist broker.
Therefore, applicants searching online or using traditional methods might not find as many, if any, bad credit mortgage options that they would using a broker.
Yes. While the range of mortgage products available to applicants with bad credit might be fewer in number and less affordable than the options for people with good credit, there are solutions available.
If you have bad credit, you will enhance your chances of success by using the services of a specialist mortgage broker who deals with bad credit lenders. We help arrange these types of mortgages:
What are the benefits of using a bad credit mortgage broker?
The key benefits of using a bad credit mortgage broker are:
The specialist will save you a lot of time and effort.
A bad credit mortgage broker has access to specialist products, so you enhance your options.
Flexibility – Telephone appointments available to fit around your schedule.
How to explore your mortgage options with The Money Hub
Call The Money Hub Limited on 0203 725 5830 and speak to one of our highly specialised and dedicated Mortgage Advisors or you can complete an enquiry form which will allow you to book a telephone appointment.
A specialist bad credit mortgage broker will be able to provide you with advice and guidance on your mortgage options. Specialist bad credit brokers can have access to lenders which clients are not able to access directly, so it is worth contacting a mortgage broker who is experienced in this area.
Many bad credit mortgage lenders don’t use an applicant’s credit score to judge whether they should lend to them or not, instead they will review the credit profile and want to understand the background to why the bad credit happened along with a detailed affordability assessment to make a decision. Using a bad credit mortgage broker who can give you advice is important.