What is a bad credit mortgage?

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According to figures released by The Joseph Rowntree Foundation, 3.8 million low-income households across the UK are in arrears, and 4.4 million have had to take on new or increased borrowing through the pandemic. Many of these households weren’t in arrears before the pandemic, and have faced income loss and increases in their expenses.

Falling behind on any credit repayment can damage your credit rating which, subsequently may mean getting a mortgage more difficult.

However, there is help at hand and Buckingham James has a high level of expertise when it comes to arranging ‘bad credit mortgages.’

What is a bad credit mortgage?

Bad credit mortgages allow borrowers to get a mortgage even if they have poor credit. If you have had arrears, defaults, county court judgements (CCJs), debt management plans or have been made bankrupt in the past 6 years, there are lenders who will consider your mortgage application.

It is possible to find a mortgage with bad credit, but it will take time and effort.

Finding a bad credit mortgage broker

The best way to find a bad credit mortgage lender is to talk to one of our experts. They will take your details and assess the rate you could get from the whole of the market. As well as this, they’ll be able to offer advice on what you can do to improve your credit rating before applying for a mortgage.

Can mortgage brokers help with bad credit mortgages?

Yes! 

Mortgage brokers specialise in finding people mortgages that they may not find on their own. Our expert advisers know how to find lenders in this specialised market and present an application in a way that will quickly determine the liklihood of a positive result. As well as this they’ll be able to offer advice on what you can do to improve your credit rating before applying for a mortgage.

Bad credit mortgages are offered to people who have had a problem paying back money in the past. The amount and severity of their past credit problems can affect the mortgage interest rates they will be offered, but it does not necessarily stop them from getting a mortgage.

If you have a bad credit rating, we’d suggest trying to improve your credit history before applying for a mortgage. But if you need to secure a mortgage now, this may not be an option.

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