Bad credit mortgage?

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Bad Credit Mortgages.

Do you have bad credit but now need mortgage advice?

If so, read on to learn how we may be able to help you.

Sadly, an increasing number of people find themselves, often through no fault of their own (e.g. divorce, illness, death of loved ones), missing required payments (defaulting). 

When this happens, it can cause all sorts of difficulties – but all is not lost! 

People can end up with County Court Judgements (CCJs) registered against their names, or else they may be forced to institute ‘Individual Voluntary Arrangements’ (IVAs) or even, sometimes, be forced to declare themselves ‘Bankrupt’.

Clearly, all the above can make getting a mortgage harder – but help and advice really are available so do not lose hope.  As a first step, if you find yourself in such a predicament, always consult an impartial mortgage broker such as Buckingham James as we can consider the specifics of your circumstances and look across a wide range of lenders and their products for what best meets your needs.

Buckingham James will be able to point you towards products and lenders who may specialise in helping people in your circumstances, even when others in the market may not be able to consider you.

When applying for a mortgage, all lenders will carry out credit checks and some markers in your credit history will create red flags, some carrying more weight than others. 

For example, a lot of recent debt will carry more weight than a small amount of debt from say, a few years ago – and different lenders will take different approaches to their underwriting.

Bad credit mortgage advice

However, we can help you through this by, for example, directing you away from high street banks, towards other lenders who may be more flexible – like some Building Societies, or specialist ‘bad’ credit lenders.

It is true that having a difficult credit history can mean that interest rates applied to mortgages can be higher than average – or, that larger than average deposits may be required.

For example, it may be that you will need a 25% deposit – and/or you may only qualify for a Loan to Value percentage of 75% (or lower).

However, many mortgage arrangements used in ‘Bad Credit Mortgage’ cases are ‘Fixed-rate mortgages’ and this can be helpful in terms of planning finances and being sure about having only manageable outgoings.

As experienced mortgage brokers, Buckingham James may well be able to help with and advise on all the above but a good thing to do, which you may prefer to do even before consulting us, is to start looking at how you can improve your credit rating as this will certainly improve your chances of being able to obtain a mortgage.

So, start by checking your credit score using an online credit checking service such as the one highlighted below and once you have your report, give some thought to how you may be able to improve your score as this will certainly help going forwards.

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