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|
|Reposessessions||no||possibly with a big deposit||possibly with a big deposit||yes||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.