Poor Credit Score
A poor credit history doesn't have to mean no mortgage. There are many solutions available for people with credit issues.
Why is a poor credit history a problem?
A mortgage is a very large financial commitment, so the decision to grant one requires a detailed analysis of many factors. Lenders check your financial history to assess the risk of default. If you've had problems repaying debts, a lender may view you with caution. Fortunately, most lenders only check the last 6 years of history.
What is a bad credit mortgage?
Bad credit mortgages are standard mortgage products but with slightly more flexible acceptance criteria. They do, however, come with some differences compared to standard mortgages:
- Higher interest rates
- A lower amount the lender will be willing to lend
- Additional fees or a higher application fee
- A requirement for a larger deposit
Types of credit issues
Different types of credit issues have different impacts on your chances:
- Late payments — less serious, especially if they occurred some time ago
- Defaults — more serious, but many lenders will consider these
- CCJ (County Court Judgement) — more challenging, but solutions exist
- IVA or bankruptcy — the most difficult cases, requiring specialist lenders
How can we help?
As an independent broker, we have access to lenders who specialise in working with clients who have a credit history. We'll analyse your situation and find the best available options. Get in touch — an initial consultation is free and without obligation.
Don't give up on your dream of owning a home
A poor credit history doesn't have to mean the end of your plans. There are many lenders offering flexible products. Contact us — we'll review your options and advise on how best to prepare your application.
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