Can You Get a Mortgage With Bad Credit?

Bad Credit Mortgage Advice

Unsecured credit is a topic that isn’t to be taken lightly. We regularly find ourselves in conversation with customers who are in need of specialist mortgage advice, due to things like missed payments, low credit score, CCJ’s and defaults, to name but a few.

Too many missed payments on something like a mobile phone contract and you could find yourself with a default attached to your credit file. This could cause trouble for you if you are looking to get a mortgage in the future, as it shows you may be unreliable with payments.

Thankfully, having missed payments or defaults isn’t the end of the world, as although you will need specialist mortgage advice in order to navigate the mortgage process, there may still be options for you.

If you have a lower deposit, your chances of being declined are likely. If you have a suitably sized deposit though, even if you have bad credit, a mortgage may still be an option for you.

A specialist mortgage lender will want to know when your default was registered against you and why it was. The further away it is and depending on if there is a good enough reason, perhaps down to a life event, the more likely you will be of achieving mortgage success.

People make mistakes and if it’s a genuine, honest mistake that your default was issued, the mortgage lender may be a little more sympathetic during your application.

We may also be able to help with more complex mortgage situations. To learn more, read our article on Can I Get a Mortgage with a CCJ?

Bad Credit Mortgage FAQs

We have put together a list of frequently asked questions and answers on the top of bad credit mortgages.

If your question or situation can’t be found below, feel free to get in touch and we’ll see how we can help. Our mortgage advice team have a great deal of experience in handling complex mortgage situations and may have encountered something similar before.

What will my mortgage advisor need to see?

No matters what type of credit problems you have had in the past, your mortgage advisor is going to need to see an up-to-date copy of your credit report, something you are typically able to obtain online, for free.

It is important that you obtain your credit report prior to applying for a mortgage, especially if you are doubtful about your credit history. Multiple failed credit searches can harm your credit rating and potentially stop you obtaining a mortgage altogether.

I have a good income but bad credit. Can I still get a mortgage?

The answer to this question will be very much dependent on your individual circumstances. We find that many customers can be quite confused by their credit score and need help understanding why it may be an issue.

To some customers, their credit score may not look the best, but in their eyes they might have a good enough deposit to lower the rate and a consistent income. Even still, because of the risk involved, a mortgage lender may not be fond of them borrowing anything at all.

The mortgage lender needs to have absolute certainty that you can keep up with your mortgage payments without the chance of possibly falling into arrears. If you do fall into arrears, the mortgage lender may need to repossess your home.

Contrary to popular belief, they will want to avoid this if they can.

Though it might sound challenging, there are still options for bad credit mortgages, though they may come with higher rates. The most beneficial step for you to take at this point, is to book an appointment with an experienced mortgage broker.

I’ve had mortgage problems before. Will that stop me from getting a mortgage?

In many situations, you may find yourself struggling to keep afloat financially, for reasons that you cannot control. This can leave you unable to make up mortgage payments you previously had no trouble paying.

It is unfortunate that circumstances like these happen. Even though it could be nothing more than a momentary blip, with you able to pay back soon enough, a missed payment may still appear on your record.

No matter what credit issues you are facing, when the time comes to remortgage, purchase your first home or move home, you may find yourself with a challenge. It’s all down to the lenders risk and whether or not they can trust you to not let it happen again.

As providers of open & honest, specialist mortgage advice, we have had lots of experience in helping customers who previously were tied to a mortgage and have since found themselves with a poor credit history.

If you are in a similar situation, then speaking with a fast & friendly mortgage broker will be beneficial to you on your way to finding future mortgage success.

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What other types of adverse obstacles are customers facing?

Customers may find themselves faced with all kinds of bad credit issues, all of which can cause a great deal of grief during the mortgage process. Some of these issues include, but are not limited to;

• Missed Mortgage Payments
• Credit Card or Loan Defaults
• County Court Judgement (CCJ’s)
• Bankruptcy

Whilst none of these are particularly great circumstances to find yourself in, it’s not necessarily the end of the road for you. You may have a longer, more challenging process, with higher mortgage rates, but there are specialist mortgage lenders who may be able to help.

To increase your chances of mortgage success and to get access to better rates, you should focus on improving your credit score. We have a useful article that we have written on How to Improve Your Credit Score, which will hopefully help you to obtain a mortgage in the future.

Get in Touch for Bad Credit Mortgage Advice

If you are need of some expert open & honest mortgage advice regarding bad credit mortgages, book your free mortgage appointment online and one of our mortgage advisors will see how they can help.

We have over 20 years of mortgage knowledge and experience on our side, working hard to make sure that we have a clear plan of action regarding you credit score, ahead of your mortgage process. It’s our hope, that the eventual outcome has you with a mortgage of your own.

Written by
Malcolm Davidson
Managing Director of UK Moneyman Ltd.
MAQ & CeRER Qualified

8th April 2024

About the Author

Malcolm Davidson

Managing Director of UK Moneyman LTD

Malcolm is one of the UK’s most well-known and respected Mortgage Advisors. He is passionate about providing a 5* customer experience and he has also trained and mentored dozens of fellow Advisors in a career that is now in its third decade.

In addition to his day to day duties as Managing Director, Malcolm still gives out mortgage advice and feels lucky that his job is also very much his hobby.

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