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Where can I get a bad credit mortgage?

Getting a mortgage if you have a poor credit score is going to be tricky, but it’s by no means impossible. Read on if you want to find out who offers bad credit mortgages and why they can be a great option for you! 

Ok, let’s be frank. Being in a position where you have to look at getting a bad credit mortgage, isn’t exactly ideal. But most importantly it’s something that you can work with. If you feel like you’re finding it hard to get a mortgage due to having a poor credit score, don’t lose hope! There are thousands of mortgage deals out there being offered by a plethora of banks and building societies. Let’s look into bad credit mortgages a little further.

Will I be able to get a mortgage if I have a bad credit score?

As we’ve said, it may be possible but it’s not going to be easy. Before you start your mortgage application, pretty much all lenders are going to conduct an affordability assessment. This is going to take into account loads of things such as your income, expenditure, and that’s right, you guessed it, your credit score.

Though, when it comes to assessing your credit history some things on it are going to have a bigger influence on your affordability than others.  This will largely depend on the sums of money that were involved and how long ago it happened.

If your credit history is seriously bad i.e. you’ve previously filed for bankruptcy, it’s going to be a real uphill struggle for you to get any sort of bad credit mortgage deal. Though if your previous financial woes have been down to matters out of your hands such as divorce, illness or other significant problems, then you can find lenders that will be willing to take this into account. This is going to be vital for you to get a better deal.

If lenders believe that you aren’t a responsible borrower after assessing your credit history, then you’re going to really struggle getting the deal that you want. So, we recommend that you speak to your lender to air out any problems that have affected your credit rating that you feel were out of your control!

With these sorts of specialist bad credit mortgage lenders, they are going to be much more lenient when conducting their affordability assessment. And overall, much more likely to accept your mortgage application. However, what they’ll try and do to mitigate the risk of lending to someone with a poor credit score is charge a higher rate of interest. This is very common for all bad credit mortgages. Therefore, it’s going to be really important for you to take your time, do your research and work out whether this type of mortgage deal is going to be the best one for you. 

What mortgage lenders offer bad credit mortgages?

Many of the bad credit lenders have their specific niches they like to deal with. Some will accept CCJ's as long at they are over 6 months old while others are flexible when it comes to IVA's or missed payments. Some lenders have a tiering system where they will cascade your application down to a tier applicable to your credit rating. Although this means that you could end up paying a higher rate to that expected at least you have been accepted & are not left making numerous applications, impacting your credit rating every time that you do.

What is the impact of bankruptcy on a bad credit mortgage?

Bankruptcies are another big factor for mortgage providers. This is normally a big no-go for most lenders. However, some will be willing to consider you if you have been discharged from your bankruptcy from a period of up to six years ago. This is because this would have provided you with adequate time to improve your credit score. So, if you’ve done these two things then you could be well within a shout of getting a bad credit mortgage or a mortgage deal with better terms.

How else are lenders going to look at my poor credit history?

When assessing your affordability for a bad credit mortgage, lenders are going to be looking to the specifics of your credit history. This is going to include what led to your credit score plummeting, when this happened and whether you had any control over this. So why do they look at the details? Unsurprisingly, if you’ve forgotten to pay your water bill this is going to have a much smaller impact compared to you declaring bankruptcy.

Mortgages Online:

At Mortgages Online we are here to help you make the leap into your new home as easy and as simple as possible. So, if you’ve got any more outstanding questions about bad credit mortgages then don’t be afraid to get in touch! Our team of experts are on call to advise you all for the price of £0 (no credit card required) so there should be nothing stopping you!

For more information on getting mortgages with bad credit, visit our bad credit mortgage section.

PaulFlavin

Paul Flavin

Paul Flavin is the Managing Director of Mortgages Online and has been working in the mortgage industry for over 20 years. Running a successful independent mortgage broker since 2010, Paul oversees Mortgages Online and creates articles regularly – drawing on his years of mortgage experience.

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