Adverse Credit Mortgages

It won’t surprise you to hear that adverse credit mortgages or mortgages for those with bad credit are not as widely available as they are for those with exemplary credit histories. Fortunately, there are enough lenders out there willing to consider that not everyone has a 5-star credit rating.

So what are your options if you have a credit history of missed credit card and CCJs?

Contrary to popular myth you can still get a mortgage even if you have bad credit and, in some cases, even if you have been declared bankrupt in the past. However, finding a lender willing to take a risk is much easier if you use the services of a specialist whole of market mortgage broker.

Advantages of using a whole of market mortgage broker

The advantage of using a mortgage broker like us is you have access to more than 140 lenders and while not all of them are willing to consider applicants with bad credit, at least some will and they will even specialise in this sector.
The table below can be used as a rough guide to your chances of getting a mortgage with adverse credit. The table shows that getting a mortgage is possible in as little as 12 months following CCJs, defaults or repossessions.

Up to 12 Months 1-2 Years 2-3 Years 3-4 Years 4+ Years
CCJs no possible yes yes yes
Defaults no possible possible yes yes
Reposessessions no possibly with a big deposit possibly with a big deposit yes yes
Bankrupt no possible possible possible yes

While the table provides a brief overview everyone’s individual circumstances are different. For example, a person could be declared bankrupt and win the lottery a year later in which case the bank might look on this individual differently when they apply for a mortgage.

Will I pay more for a mortgage with adverse credit?

This is a common question for applicants and this really depends on the lender. Logic dictates that lenders will charge what the market rate is and unfortunately for those with adverse credit, the competition for your business is not going to be as hot as it is for those with good credit records.

That said, a whole of market mortgage broker will be able to open up access to the best rates available and you may be surprised to find out what is available.

Speak to our experts today about getting a mortgage with adverse credit

If you can afford to wait and begin the process of cleaning up your credit file, then this is always going to make getting a mortgage easier. If on the other hand you have your heart set on buying a property and are looking for ways to qualify despite having adverse credit speak to one of our advisors today.

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What Is An Adverse Credit Mortgage?

Adverse credit​ (also known as bad credit) is when you have a less-than-perfect history of repaying debt or credit commitments. You can get bad credit for a variety of reasons, including ​missing bill payments​, ​county court judgements (CCJs)​ and individual voluntary arrangements (IVAs)​.

Having bad credit can make it tougher than normal to get a ​mortgage​. However, it’s still possible to secure a mortgage if you have bad credit. Many lenders offer ​adverse credit mortgages​, which are specifically designed for people with bad credit. They’re more popular than you might think, ​making up a third of the current mortgage market​.

Plus, not all bad credit carries the same weight. A missed utility bill is less damaging than a CCJ, for example. It all depends on the amount of money involved and how much time has passed. Not sure whether you have good or bad credit? You can check your credit score through organisations like ​Experian​ and ​ClearScore​.

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Why Might You Need An Adverse Credit Mortgage?

 

How To Improve Your Chances Of Securing A Mortgage With Adverse Credit

 

How We Can Help If You’re Looking For An Adverse Credit Mortgage