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‘Bad Credit.’ ‘Arrears.’ ‘County Court Judgements.’ ‘Repossession…’
None of them are good news. But they don’t mean you can’t get a mortgage.
Most of us have had financial problems at some time in our lives. There can be all sorts of reasons. Redundancy, business failure, divorce. Sometimes, just plain bad luck.
But today, everything is remorselessly recorded by the credit reference agencies. So bad credit – however it’s been caused – could make it difficult for you to get a mortgage.
Difficult, but not impossible…
That's where we come in.
We’re experts at arranging mortgages for people who’ve had bad credit.
We understand that you shouldn’t pay for one mistake for the rest of your life.
The brokers we work work with deal with a wide range of experienced lenders who specialise in the bad credit market.
Just because the ‘household names’ won’t lend to you, it doesn’t mean that no-one will. Our mortgage brokers have years of experience in packaging and presenting your mortgage application in exactly the right way.
Their experience means they know which lenders are likely to lend to you – at the most competitive rate.
Their expertise means they will gather and package all the information the lender needs to come back to you with a favourable decision.
They’ll advise you on the best lender – and make it as easy as possible for that lender to say “yes.”
First and foremost we’ll talk to you in plain jargon-free language. We’ll explain everything fully and be totally committed to helping you get the very best mortgage.
We’ll make sure that your monthly repayments are within your budget.
We’ll guarantee that all our charges and the costs associated with your mortgage are completely transparent.
We’ll keep you in touch with the progress of your mortgage application.
And we’ll work with your solicitors to make sure the whole process of moving house – or re-mortgaging your existing property – goes as smoothly as possible.
Defaults will send the vast majority of High Street lenders running for cover. Clearly, defaulting on a loan or other credit agreement is a black mark on your credit file, but it doesn’t mean you can’t get a mortgage.
There are specialist lenders who are happy to accept defaults: we deal with all of them.
Like any adverse credit, defaults need to be fully explained to the lender – but the key point is that the lenders are specialists in this market.
Eligibility Criteria: Currently, there are mortgage providers who will lend if you have defaults of any value more than 2 years old. Or no more than 2 defaults in the past 2 years. If they were registered on your credit file in the past 12 months, the maximum combined value of the 2 defaults must not exceed £1500. Defaults between 1 and 2 years old can be any value but you are still restricted to a maximum of two.
If you meet the eligibility criteria above, click here to get a fast, no-obligation quote.
County Court Judgements, or CCJs as they’re more commonly called. Like defaults, missed payments and Debt Management Plans, CCJs can be a serious barrier to you getting a mortgage.
After all, someone has obtained judgement against you in a Court: not the sort of information a mainstream lender wants to see on your credit file.
However, there are an increasing number of lenders prepared to grant mortgages to people who have CCJs. There are several questions they’ll want answering – how many CCJs do you have? How much for? How old are they? Do you have any other types of adverse credit on your file? The answers will determine whether or not they’ll lend.
The latest eligibility criteria is 1 registered CCJ in the last 2 years with a maximum value of £1000 if registered in the past 12 months, or £2500 if registered between 1 and 2 years ago.
If you meet the above criteria, then apply for a quote from one of our brokers who regularly deals with mortgages and CCJs. We’ll be able to tell you which lenders are likely to view your application sympathetically, and the information they’ll need to see.
All of us have – at one time or another – been late with a payment. The trouble is that these days, missed payments can show up on your credit history – and in some cases, they’ll make it difficult for you to get a mortgage.
That’s why using a skilled and experienced mortgage broker is so essential as not all late payments are treated the same. A missed payment 2 months ago on a secured loan for example, will be looked upon far less favourably than a missed credit card payment 3 years ago.
Our specialist mortgage brokers know which lenders will accept some late payments – and which expect every payment to have been made on time since the day you first opened a bank account.
The more missed payments there are, the more your choice of mortgage lenders will be restricted. But there are specialist adverse friendly lenders our advisors deal with who will look at late payments sympathetically.
The key is to explain the reason for the late payments, and make sure the lender has all the information.
Current eligibility criteria: Missed payments of any value more than 2 years ago or missed payment no more than twice in the past 2 years (max value of £2500) or missed or defaulted no more than twice in the past year (max value of £1500).
Think you are eligible? We'd love to hear from you. Click here to get a fast, no-obligation quote.
Whilst not as bad for your credit rating as bankruptcy, the vast majority of mortgage providers will look unfavourably upon anyone with an IVA. Fortunately the adverse credit lenders our specialist brokers work with are more sympathetic.
So obtaining a mortgage with an IVA is still possible. But bear in mind your chances increase the more time has passed since your IVA was settled. Although it is possible to remortgage whilst in your IVA - see below.
Will I qualify? IVA's if SATISFIED for minimum 2 years, max LTV 75%. There are lenders currently available who will consider mortgage or loan applications if your IVA has been satisfied for at least 2 years. Maximum 75% Loan To Value (LTV).
Can you do anything at all for people who want to remortgage to pay off an IVA?
Yes we can. Lenders are very picky around this type of transaction but we do have a couple that will consider it. Max LTV 65% and minimum £100k loan size.
Being declared bankrupt is just about the worst that can happen to you financially. But people can and do recover – and bankruptcy absolutely doesn’t mean you’ll never be able to mortgage again.
We’re consistently able to arrange mortgages for people who’ve been made bankrupt in the past.
There are lenders who specialise in this mortgages for ex-bankrupts. We deal with them every day and know exactly what they will and won’t consider and the information they’ll want to see.
Eligibility criteria: You must have been discharged from bankruptcy for a minimum 1 year and have at least 30% deposit to put down. After 2 years, more lenders become available and only 25% deposit is required. After 3 years, the number of lenders increases even further and more competitive rates become available.
The first step is to find out exactly what information is held about you by the UK credit reference agencies.
A useful time saver is checkmyfile.com. This will show both your Equifax and Call Credit reports together.
We highly recommend you download your file from each credit agency. Sometimes there can mistakes or out of date information on one or more of the reports. This will distort your credit score unless you fix it. You should also read our essential guide to improving your credit score for some useful pointers.
Mortgage lenders check with the credit reference agencies whenever you apply for credit. Companies also provide the credit agencies with information about your credit commitments. The information they exchange includes amounts borrowed and, crucially, notification of any payment arrears or defaults, exceeded overdrafts or credit limits.
Remember that credit doesn’t just cover credit cards, personal loans, overdrafts and mortgages. It also includes things like phone contracts, mail order catalogue hire purchase agreements and other “buy now, pay later” arrangements.
This broad definition of credit can sometimes lead to nasty surprises for mortgage applicants.
You may believe you your recent credit record is spotless. Only to discover that dispute with your mobile phone provider two years ago has affected your credit rating.
That’s why you should check your credit history in the reports very carefully for any inaccuracies. Credit records are usually pretty accurate, but because they are based on account information provided by various lenders and other companies, discrepancies and errors do occur occasionally, and these can affect your credit score.
The reports should show details of any credit commitments you have held, whether all payments have been made on time or if there have been payment arrears.
If you find any errors or points that you dispute, contact the credit reference agency to arrange for a “notice of correction” to be placed on the file. Alternatively contact the lender directly to request a credit file correction.
Apart from checking for basic errors with your date of birth or address, check any financial associations listed. Generally, this should only name people with whom you have held a joint account, loan or mortgage.
However, if you’ve lived in a shared house, associations with former housemates can be recorded and cause problems through no fault of your own. You should seek to get them removed from your file as soon as possible.
Once you are satisfied that your credit report is correct and up to date, complete our 60 second application form and get a FREE quote from an advisor. Our brokers will not only make efforts to find a lender that will accommodate your credit rating, but also recommend the best mortgage deal for your circumstances.