If you have saved a good deposit and receive a decent salary then you would expect to be able to access an affordable mortgage; but sometimes that’s just not enough.
A poor credit rating can act as a major barrier to securing a mortgage, It doesn’t really seem fair that a couple of late payments on your credit card bills can actually reduce the likelihood of getting a mortgage.
Banks and building societies are cautious about who they lend to and often a specialist mortgage advisory can be the only option – In the years following the economic crash, they were far more cautious than they had been before. Thankfully, the economy is starting to recover, and gradually Mortgage lending is on increase.
As part of their lending decision, banks and building societies will always check credit reports on potential borrowers to see whether they have defaulted on any payments in the past. They will also look at other elements of their credit report to see whether any County Court Judgements (CCJs) have been filed against you, or if you have ever been made bankrupt.
If any of these scenarios apply to you then you may not qualify for a mortgage with the high street banks and building societies – even if the events occurred a long time ago. However, there are specialist mortgage lenders who will be willing to help those whose applications have been refused elsewhere.
Remortgages with bad credit
There are some mortgages that have been designed specifically for people with adverse credit. These ‘bad credit mortgages’ tailor to those whose credit rating is less than perfect, but who have good reasons for the issues on their credit profile.
Typically offered by specialist lenders that operate only in this market. The mortgage products they offer work in the same way as a conventional mortgage, so you will have to make repayments every month, but as the risks for the lender are higher, you should expect to pay higher interest rates.
If a remortgage cant work then potentially a secured loan may work for you.
How can we help?
When applying for a mortgage with bad credit its vital you shop around to find the right deal. Here at Mortgage Advisors.co.uk, we work with advisors who specialise i bad credit remortgages and will try find a suitable mortgage product.
simply complete our enquiry form and we will put you in touch with a mortgage advisor – They will contact you to provide a free, no-obligation initial consultation and talk you through your options.