Everything You Need to Know
If you have bad credit, it’s easy to assume that you won’t be able to buy your own home. That’s not necessarily true though! We are a leading mortgage advisor for those with less-than-perfect credit scores, and we will work with you to try and secure you the best possible mortgage for your needs.
What is Bad Credit, and How Does it Affect Mortgages?
Bad credit is a red flag for lenders, as it shows that you may not be able to meet your mortgage repayments. All kinds of things can have a negative impact on your credit score, including:
- Missed payments
- Past financial difficulties
- County Court Judgements (CCJs)
- Bankruptcy
- Too many hard searches on your credit history
- Little or no credit history
- Moving home regularly
However, not all bad credit is the same. The severity and frequency of your credit issues will be assessed by a lender. If you ran into financial issues recently, they will be less likely to approve you than someone who has received their issues and is taking proactive steps to improve their credit. The lenders we work with always assess applications on a case-by-case basis.
How You Can Secure a Mortgage with Bad Credit
If your credit score isn’t great, there are some things that you can do to improve your chances of being approved for a mortgage.
Know Your Credit Score
Start by reviewing your credit report. Understanding the specific issues affecting your credit score allows you to put an efficient strategy into place. You should also look for errors on your credit report and correct them promptly. Even small mistakes can impact your score.
Save for a Larger Deposit
A larger deposit can improve your chances of approval. It reduces the lender’s risk, as there will be less for you to pay back. A larger deposit is a great thing for any buyer, but in your case, it could be what makes the difference.
Improve Your Financial Habits
While you can’t erase the bad parts of your credit history overnight, you can demonstrate better financial behaviour moving forward. Be sure to pay all of your bills on time and avoid taking on any new debt if you can.
How A Little Mortgage Advice Can Help
A mortgage broker is invaluable when you’re dealing with bad credit. Here’s how working with us can make the process so much smoother:
Access to All UK Lenders
We have access to all UK lenders, including those who have a more flexible approach when it comes to applicants with bad credit. This means that we can cut out a lot of uncertainty and only forward applications to lenders that are likely to accept you.
Protecting Your Credit Score
Being rejected for a mortgage doesn’t directly affect your credit score, but due to the ‘hard’ search that lenders carry out on your report, making multiple applications in a short period of time can. We reduce the risk of this by reaching out to lenders who are likely to accept you in the first place.
Tailored Guidance
Everyone’s situation is unique, and that is why we take the time to understand your circumstances and plans for the short and long term. We provide tailored advice, helping you improve your chances of approval while finding the right mortgage for your needs.
Talk to Us
Bad credit doesn’t have to stand between you and your dream of owning a home! Contact us today to get your journey started.
