Bad Credit Mortgages

We specialise in helping clients that have bad credit registered such as CCJ's, defaults, missed payments and mortgage arrears.

If you have a low credit score or maybe been declined by other lenders we can help.

We have a specialist panel of lenders and our advisers are very experienced in helping find clients a bad credit mortgage.

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Bad Credit Mortgages | The Money Hub

We specialise in helping clients that have bad credit registered such as CCJs, defaults, missed payments and mortgage arrears.

If you have a low credit score or maybe been declined by other lenders we can help.

We have a specialist panel of lenders and our advisers are very experienced in helping find clients a bad credit mortgage.

Getting a mortgage when you have bad credit can be tough, especially if you have bad credit history, defaults, county court judgements (CCJs), mortgage arrears or individual voluntary arrangements (IVAs). Despite these factors though, it’s not impossible to obtain a bad credit mortgage.

Getting A Mortgage With Bad Credit

It is possible to get a mortgage with a bad credit history, and there are lenders out there who may consider those who might be rejected for mortgages elsewhere.

Bad credit mortgages are much like a standard mortgage; the only real difference is that they assist people who have perhaps been refused a mortgage in the past for a poor credit rating. Rates are adapted according to each individual circumstance and a deal is then packaged to suit.

A bad credit mortgage is favourable to those who feel as though they deserve a chance to prove that they can sensibly manage their finances by keeping on top of monthly mortgage repayments, despite what may have happened in the past, including (but not limited to) defaults, CCJs, individual voluntary arrangements (IVAs) or a bankruptcy in credit history. It is important to assess your own financial situation, and understand it before applying for a bad credit mortgage, this way you will be prepared for the scrutiny that lays ahead.

Applying for a mortgage can be stressful at the best of times, but looking for bad credit mortgages can be even more so. The first thing to remember though is that you are not alone. Bad credit mortgages do exist, and you can still qualify for a mortgage despite a poor credit history.

Many people in the UK have had missed payments on finance they have taken out. It is not a stigma anymore and there are specialist lenders that can help your application to get a bad credit mortgage. The other thing to consider is that we recognise that having bad credit is not always the individuals fault. Divorces, businesses not working out as intended, loss of employment – there are many reasons as to why people may end up with some adverse credit history on their file.


What is bad credit?

Bad credit occurs when you have not kept to the terms of the credit agreement and this will show in your credit record. Your credit record is an electronic document containing your financial history that lenders can see if you apply for credit like a mortgage, loan or credit card. If your credit record includes missed payments or problems like bankruptcy and CCJs, this is known as bad credit.

What are the causes of a bad credit rating?

There are many common causes of a bad credit rating, including:

  • Failing to stick to a credit agreement
  • Declaring bankruptcy
  • Being the subject of a country court judgement (CCJ)
  • Only paying the minimum each month
  • Identity theft

What can I do to make my credit score higher?

If you have a bad credit rating, there are some things that you can do to improve your score. None of these things will guarantee your credit score goes up, but by doing them you will see an overall improvement in your credit rating over time:

  • Don’t fall behind on bills or debt repayments
  • Add yourself to the electoral roll
  • Don’t have any unused credit accounts
  • If you use a credit card, clear the balance each month and keep the balances away from the limits.

By improving your credit rating, you will be in a better position to be approved for mortgages and other types of loans in the future. Having a better credit rating will also mean that you will likely not have to pay as much interest on future debts.

Guide to mortgages for people with bad credit

Problems with your credit history may stem from missed payments (for example, credit card payments), a County Court Judgment (CCJ) or bankruptcy. These can all have an adverse impact on your credit and may mean that the risk you present to lenders is too high for them to consider giving you a mortgage. Even if you are accepted, you may face higher interest rates and/or fees, as borrowers with poor credit ratings may not have as much choice as those with good credit scores. However, there are lenders out there who may consider those who might be rejected for mortgages elsewhere.

Thankfully, there are many mortgage companies who will consider clients for a bad credit mortgage. CCJs, Defaults, debt management plans, arrears are all situations which will be carefully looked at regardless of your current circumstances. We utilise a panel of experienced specialist lenders that can look at each case individually and we recognise that it is important to remember that everyone has different reasons for being in their current financial situation and there are occasions when these difficult situations are not of their own making.

How much will a bad credit mortgage cost?

A mortgage with bad credit is usually more expensive, because a lender will price their products based on the assessment of risk lending to you. Not only could a bad credit mortgage potentially cost you more, but you may find that the amount lenders will consider affordable for you to borrow is less than some other lenders.

Bad credit mortgage application

A bad credit mortgage application is treated sympathetically and in confidence by the team here at The Money Hub. We will consider your situation and place your details with the most appropriate lender. Then, by carefully assessing your status that includes employment, household income and expenditure as well as other key factors, a decision can be made based upon affordability as well as your credit file.

Applying for and being granted a bad credit mortgage may not be quite the challenge that many people expect. One important element is not to make too many applications. Lenders will see on your credit file that you have made multiple applications and this in itself may have an impact on your overall credit rating. Better to apply to a specialist bad credit mortgage broker who will be able to deal with each case on an individual basis in order to minimise credit searches and to find the most appropriate mortgage product that is available to suit your current needs.

You may need to pay a slightly higher rate initially but this is often a small price to pay for the house of your dreams, Over the course of time and as your credit score improves, you may have the option of switching mortgages in the future to help bring down payments even more.

If you have been turned down by your high street bank for having a less than perfect credit score do not despair as we are experts and have a lot of experience in matching the right mortgage product for the right person. A bad credit mortgage may well be available to you as we have access to the whole of the market, significantly increasing your chances of getting the mortgage that you deserve.

How you can improve your bad credit rating to increase your chances of applying for a bad credit mortgage

  • Make sure you are on the electoral roll.
  • Pay your bills on time and in full.
  • Close any credit accounts that you do not use.
  • Do not get too many credit searches done
  • Avoid going into your overdraft
  • Try to clear your credit card balances each month and keep away from the limits.

Can I get a mortgage with no credit history?

It may be possible to get a mortgage without having a credit history, but it will be much more difficult. It may mean you need a larger deposit or have to accept less favourable terms such as higher interest rates.

There are specialist lenders that will work with people who have limited or poor credit history. So, if you do have things like County Court Judgements (CCJs), Individual Voluntary Arrangements (IVAs) or bankruptcy in your credit history, it might be necessary to find a lender who matches your particular circumstances.

It will also depend on how much debt you had and how long it has been since the CCJ or insolvency solution has been resolved. Some lenders may be more willing to lend if the amount was below a certain threshold and has been fully satisfied.

If you have no credit history simply because you have not needed credit in the past or are a younger buyer, you may still be able to get a mortgage with a high street bank. It may also be possible to establish a credit history by using credit available to first-time credit users.

Can I get a zero-deposit mortgage with bad credit?

Finding a 100% mortgage where there is no deposit required can actually be quite difficult. Even if you have an excellent credit history, you will most likely need to provide at least a 5% deposit. So, although it may not be impossible for someone to get a mortgage with bad credit a deposit would be needed and the amount of this deposit will depend upon your credit history.

If lenders have no evidence in the form of a deposit or credit history as to how likely you are to pay it back, there is no motivation for them to offer the loan. Other factors may affect the decision though, such as your income and the size of the mortgage.

Get in touch with professional bad credit mortgage lenders today

At The Money Hub, we receive many enquiries from clients who have had some credit difficulties in the past, and so they find themselves in a tricky position when it comes to securing a mortgage. Our team of professional bad credit mortgage advisers are on hand to ensure that you receive the very best advice and assistance. We run a fast, efficient and friendly service helping you to get a bad credit mortgage as quickly as possible, and every application is guaranteed to be considered.

To find out more, please get in touch with The Money Hub team today.


Related articles from our blog:

What are Bad Credit Mortgages?

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Bad Credit Mortgage FAQ's

Can I get a mortgage with bad credit?
There are specialist lenders who are able to help clients that have had bad credit registered and these specialist lenders generally offer their products through mortgage brokers. The amount of lenders that are able to help you will depend upon when the bad credit was registered, the type of debt that incurred missed payments, did the debt progress to become a default or County Court Judgement and have you since been able to resolve the bad debt.
Can I get a mortgage with a CCJ?
Yes, but it will depend upon many factors such as when the CCJ was registered, how much the CCJ was for and have you managed to satisfy the CCJ. The more recent the CCJ the less lenders will be able to help you and the bigger the deposit/equity will need to be, whereas if the CCJ was 5 years ago and satisfied more lenders may consider you.
Can you get a mortgage with no credit history?
Yes, however you will probably need to approach a mortgage lender that does not credit score. Most high street banks credit score their clients, so if you don’t have any credit history your score will more than likely be low as you have no record of being able to manage credit. Some building societies and specialist lenders available through mortgage brokers maybe able to help.
Can you remortgage with bad credit?
There are lenders offering mortgage deals to clients that have a low credit score due to bad credit being registered such as missed payments, defaults &/or County court judgements. The availability of mortgages will depend upon when the bad credit was registered and how much it was for. The first step is to review your credit report and speak to an experienced mortgage adviser who is regulated and authorised by the Financial Conduct Authority.
How to apply for a mortgage with bad credit?
The first step is to get a copy of your credit report. Some lenders take data from Experian, some use Equifax and some lenders look at data from both credit agencies – so a good place to start is getting a credit report from CheckMyFile. With this you should speak to an experienced mortgage broker to be advised of your options.
What is the average mortgage rate for a bad credit mortgage?
This is hard to say as every client has different circumstances. Finding a mortgage with a high street lender maybe difficult if you have a low credit score, however there are lenders available through brokers who will consider clients with a poor credit history.
How to improve your credit score?
Settling debts that have gone into arrangements, not constantly running your credit cards at the limit, adding yourself to the voters roll are a few things that can help. Improving your credit score does take time. Visit our blog specifically about your credit score for help.

Bad Credit Mortgages

The Money Hub

Product Name: Mortgages

Product Description: Bad Credit Mortgages

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Joe

Gary has been brilliant throughout the whole process. Very knowledgeable, helpful and efficient. The service provided as a whole, has been excellent, 10/10.