Bad Credit Mortgages

A minimum of 5% deposit is required for bad credit mortgages. Your deposit can be from your savings or a family gift.

Like all mortgages, the bigger deposit you have available to put down on a property the better interest rate deal you may qualify for. Mortgage deals, including bad credit mortgages, work in bands, each band will have a different interest rate depending on the risk to the lender.

For example, a 95% loan to value mortgage will be at a higher rate than a 60% loan to value deal as the lender is taking on more risk.

With bad credit mortgages, your deposit will be determined by the type, date, amount and whether your credit problem has been settled or not. Often, the smaller the problem and the more historic it was, the lower the deposit required will be.

If your credit issues are large, unsettled, and recent your mortgage lender may request a bigger deposit. Our mortgage broker team will help you navigate the world of bad credit mortgages and we’ll let you know how much deposit you will need.

When considering your application for a debt consolidation mortgage with bad credit, your income both sole or joint, outgoings, age, credit score, employment type and personal situation will be considered.

Generally, the more equity that you have available the better your chances of being accepted or a debt consolidation mortgage with bad credit are. Also, the smaller the amount and longer ago your bad credit was the better.

If you have bad credit and are considering a debt consolidation mortgage, it’s always best to start by getting an up-to-date copy of your credit report and getting this looked over by your mortgage broker.

If you are considering consolidating your debts on to your mortgage, this is possible with bad credit, however, please seek professional mortgage advice as you could end up in a worse position.  You’ll be taking un-secured lending and securing it against your home, in the event of missed payments, your home could be repossessed by the lender.

We work with many lenders, some more specialist in debt consolidation with bad credit than others.

Yes, it is possible to get a mortgage with bad credit.

The types of bad credit that can be used for a mortgage are:

• County court judgements (CCJs).
• Debt management plans (DMPs).
• Missed payments.
• Defaults.
• Individual Voluntary Arrangements (IVAs).
• Bankruptcy.
• Poor or low credit score.
• High debts in the form of personal loans and credit cards.

With bad credit mortgages the severity of when, how much, and why the credit issue you have along with the size of the deposit you have available will determine which lender will accept you.

With bad credit mortgages, it’s not a case of going online to find the cheapest rate, it’s very criteria driven and there will be hurdles to overcome throughout the application process. We’ve helped 1,000s of customers over the last few years get bad credit mortgages.

Yes, you can get a mortgage with a county court judgement (CCJ) up to 95% loan to value. However, it can be more challenging.

Whether your CCJ is satisfied, part-satisfied, not satisfied, set aside, or expired there will be bad credit CCJ mortgage options for you to consider. The bigger deposit that you have to put down on a property will increase your chances of being accepted, however, 95% loan to value deals are available on the market.

Our experienced mortgage broker team will help you work through the maze of CCJ mortgages that are available to recommend the best one for you and your personal situation.

Also, something to bear in mind that getting a mortgage with a CCJ is just a stepping stone and hopefully, in the future you’ll qualify for normal rates when your credit score increases and your CCJ falls off your credit file.

Yes, with the right lender you will be able to get a mortgage with missed/late payments.

Here are the factors to consider when trying to get a bad credit mortgage with missed payments:

• What type of payment you missed, i.e. was it a mobile phone bill or was it a mortgage payment?
• How much was the missed payment, i.e. was it £10 or was it £1,000?
• When was the missed payment, i.e. was it last month or was it 5 years ago?
• Whether you’ve now paid it or if it’s still outstanding?
• Why did the missed payment happen, i.e. was it an oversight and rectified quickly or was the payment not affordable?

With missed payments, getting a mortgage with bad credit can be harder but usually not impossible with a good broker on your side.

Yes, you can get a bad credit mortgage with defaults on your credit file, however, you’ll find it harder to get accepted.

Defaults will remain on your credit file for 6 years and can harm your chances of being accepted for a mortgage application. A default can be classed as satisfied, i.e. paid back, or un-satisfied, i.e. still owing.

The type of company that has given you a default will also have an impact, for example, a lot of lenders will now ignore any defaults from telecommunications companies due to them being a low amount and it’s easy to get one, often without realising due to changes in email and postal addresses.

We’ll have more of a chance to get you a mortgage is you have a large deposit, good steady income, and a satisfied default.

A client with a default on their credit file, whether it’s now been repaid or not, is deemed as higher risk than a client with a clean credit score therefore stricter criteria and checks are in place to protect them from having to repossess your home.

Yes, nowadays there are lots of over 50s mortgage options available.

Whether you are looking to purchase a new property, remortgage, capital raise, or something more complicated we have a specialist later life team that are available 7 days a week.

Over 50s mortgage options include, regular mortgages, retirement interest only mortgages, equity release mortgages and standard interest-only mortgage products.

These are the types of credit issues that are acceptable to mortgage lenders:

• County court judgements (CCJs).
• Debt management plans (DMPs).
• Missed payments.
• Defaults.
• Individual Voluntary Arrangements (IVAs).
• Bankruptcy.
• Poor or low credit score.
• High debts in the form of personal loans and credit cards.

With bad credit mortgages the severity of when, how much, and why the credit issue you have along with the size of the deposit you have available will determine what is acceptable to the mortgage lender.

To get accepted for a bad credit mortgage, it’s not just a case of going online to find the lowest interest rate, it is criteria driven and there will be hurdles to overcome along the way.

Bad credit affects mortgage eligibility and interest rates negatively.

With bad credit, you’ll find it harder to get a mortgage as there’ll be more hurdles to overcome during the application process due to tight lending criteria rules.

Also, your interest rate will also likely be higher with bad credit mortgages as you are deemed as higher risk customer by the lender.

Bear in mind though that a bad credit mortgage isn’t forever and hopefully, you’ll be able to remortgage to a regular interest rate at some point in the future.

The documents that you will need to provide for bad credit mortgage are generally:

• Basic details, name, address, date of birth etc.
• Income details, where your income comes from and what you do for a living.
• Details of existing mortgages, debts, credit commitments etc.
• 3 months proof of earnings.
• Identification.
• 3 months bank statements.
• Credit file showing when your credit was registered, how much it was for, and whether it’s now settled or not.

With bad credit mortgages, it’s normal for a lender to review the above information and then come back and ask for clarification or another document. Also, if your case doesn’t for high street and a more specialist lender is recommended, the application process can be longer and there are usually more hurdles to overcome.

Our mortgage processing team do their best to package your case ahead of it going to a lender so we can usually predict what the lender will ask for. We work on your side, helping you throughout the process and overcoming any problems that we meet along the way.

Please bear in mind that lenders have access to a huge amount of personal data about you, much more than what you as the client or us as your mortgage broker can see. They may request to do additional checks or request further evidence at any time.

When you’re going through a mortgage application it’s important that avoid taking out any finance or unwanted credit searches as your mortgage offer can be pulled or rescored at any time. Also, it’s important to pay everything on time to avoid any other bad credit being registered against you.

Yes, there are specialist bad credit mortgage lenders.

Specialist bad credit mortgage lenders exist alongside high street lenders to help plug the gap for customers with a poor credit rating. Specialist mortgage lenders are usually smaller in size, and their underwriting process is longer than with a bigger high street lender. This means that you’ll need to be patient and wait longer for your mortgage offer.

Working alongside both high street and specialist mortgage lenders we aim to help our customers get accepted for bad credit mortgages. With a trusted mortgage broker like us, you can be confident that you’ll have experience and knowledge on your side.

We have in-depth knowledge of lending criteria and years of experience within our team of helping clients with bad credit remortgages.

Depending on what is registered against you, how much it was for, and, when it was, will depend on which mortgage lender we recommend. Some of the more specialist bad credit lenders will charge a slightly higher interest rate, however, when your score picks up in the future you might fit with high-street lenders.

Yes, you can get a buy to let mortgage with bad credit. If you’re an experienced landlord with equity, income, and a good knowledge of the buy to let market your chances of being accepted for a mortgage are high.

However, if you’re a first time buy to let landlord with bad credit, you may struggle, however, the more deposit you have available and the more personal income you have will help your chances.

Also, it’ll depend on what the bad credit is that is registered against you and the severity of it. Buy to let mortgage lenders lend money based on risk, therefore, if you’ve regularly missed credit card payments and keep going over your overdraft you’ll be deemed as very high risk for lending purposes.

The buy to let mortgage market is now classed as specialist lending therefore you’ll need a mortgage broker on your side to navigate the maze of deals that is available. Without seeking expert advice, you could incur additional costs and waste time pursuing a property that is not viable to you.

With buy to let bad credit mortgages, you’ll need a minimum of 20% deposit, the same as a clean credit application. You’ll also need to have a good knowledge of the area and rental income that you’ll receive from the property. In certain parts of the UK, rental income will not be enough to meet the cost of the mortgage therefore a bigger deposit will be required.

Bad credit will more than likely not stop you getting a buy to let mortgage, it’ll just make it harder. More difficult hurdles to overcome are with having enough deposit available and ensuring that the rental income will be enough to cover the mortgage.

95% loan to value bad credit mortgages are available.

Like regular mortgages, the bigger deposit you have available to put down on a property the better interest rate deal you may qualify for.  Mortgage deals, including bad credit mortgages, work in bands, each band will have a different interest rate depending on the risk to the lender.

For example, a 95% loan to value mortgage will be at a higher rate than a 60% loan to value deal as the lender is taking on more risk.

With bad credit mortgages, your maximum loan amount will be determined by the type, date, amount and whether your credit problem has been settled or not.  Often, the smaller the problem and the more historic it was, the higher the loan to value ratio will be.

If your credit issues are large, unsettled, and recent your mortgage lender may request a bigger deposit to lower to the loan to value ratio.

Our specialist mortgage advisor team will help you understand the subject of bad credit mortgages and we’ll let you know how much deposit you will need.

It depends on the credit issue, some you can apply for straight away, some you’ll have to wait a while.

For example, some mortgage lenders will ignore any bad credit registered by telephone companies all together. More serious credit issues are missed credit card payments, you’ll have to wait a minimum of 6 months to apply for a mortgage.

If you have missed mortgage payments showing on your credit file this is serious and a new lender will be very nervous taking you on. If you are struggling to pay your mortgage for any reason, it’s always best to speak to your lender straight away before any payments are missed to come to an arrangement. They might allow you to take a payment holiday or switch to interest-only for a few months while you get on top of things.

If you have personal loans are credit cards and would like to consider your debt consolidation mortgage options, our team are available 7 days a week to help. Often with credit cards, customers can get stuck paying the minimum payment and not seeing the balance reduce can be stressful.

If you are considering consolidating your debts on to your mortgage, this is possible with bad credit, however, please seek professional mortgage advice as you could end up in a worse position. You’ll be taking un-secured lending and securing it against your home, in the event of missed payments, your home could be repossessed by the lender.

Yes, you can get a bad credit mortgage when you have bad credit. However, it’s usually more difficult than with an employed applicant due to the increased risk to the lender.

The good news is that there are lots of great mortgage products out there specifically designed for the self-employed with bad credit.

Here are the most popular income types for self-employed mortgages with bad credit:

• Dividend income.
• PAYE income.
• CIS Income.
• Directors’ loan.
• Retained profits.
• Freelancer/Contractor income.
• Employer pension contributions adjustment.
• Benefit income.
• Investment income.
• Pension income.
• Combination of the above.

A great place to get started with your bad credit self-employed mortgage options would be to get an up-to-date copy of your credit report showing the full details of your bad credit such as amounts, dates and whether they are now settled.

The most popular type of self-employed bad credit mortgage is a CCJ mortgage.  With any bad credit, your mortgage lender will be interested to know the exact dates it started/happened, the amounts it was for, and whether it’s now cleared.  It’s all about meeting strict criteria of the lender.

Once your mortgage broker knows the facts from your credit report, they’ll be able to recommend the best lender for you based on your individual circumstances.

Yes, possibly. Having a guarantor or another applicant on the mortgage application could help your chances of being accepted or allow you to borrow more.

Also, there are some guarantor schemes that are available that allow you to borrow more money than what would be possible with a sole application. If your guarantor is a parent, they’ll need to be earning enough to cover the full mortgage amount for the duration of the loan. Often, guarantor mortgages do not qualify based on the age of the parent.

Also, as bad credit mortgage lending is very criteria driven, you’ll both need to meet the qualification criteria to apply. With a guarantor or joint applicant income, age, affordability, and credit files will be reviewed as part of the application process to ensure the mortgage is affordable.

Mortgage lenders are under strict rules themselves as to who they are lending to surrounding the quality of their mortgage books. If customers do not meet their criteria for bad credit mortgages, this could result in an increase in the number of repossessions for the lender.

Bad credit mortgages have similar costs to regular mortgages, however, if a more specialist lender is recommended, a slightly higher interest rate will be applied due to the increased risk by the lender.

What you must factor in with bad credit mortgages is that the increased interest rate doesn’t have to be forever. In 2-, 3-, or 5-years’ time when your fixed-rate deal ends, depending on the conduct of your mortgage payments and credit file, you might then qualify for a high street mortgage deal with a lower rate.

The other costs associated with bad credit mortgages are:

• Mortgage application fees.
• Property valuation.
• Survey, various types are available.
• Conveyancing fees.
• Mortgage broker fee depending on the work involved.
• Stamp duty.