POOR CREDIT MORTGAGES
SPECIALIST MORTGAGE ADVICE
Adverse Credit, CCJs, Defaults, Payday Loans, Late Payments?
Do not let Adverse Credit hold you back from getting a mortgage. We have dealt with many clients in similar situations and we are happy to discuss your options.
The Mortgage Hive is able to help you out when the high street lenders say No. Our Specialist Lenders cover a wide range of deals for all circumstances, we will be able to find the deal right for you despite your previous credit history.
Some factors which can affect your credit score include:
Late or missed payments
Bankruptcy, IVA, DRO, DMP, CCJ, Defaults, Pay Day Loans
Lack of credit history
High credit utilisation
Applying for lots of credit accounts in a short period of time
Mortgage with Bad Credit?, How to increase your credit score:
Register to be on the electoral roll
Paying bills and credit agreements on time
Don't max out, Keep your credit utilisation low
Limit credit applications
Consider closing unused accounts
Check your Credit Report
Understand Your Credit Report!
Your Situation is Unique
So is Our Advice.
Even if you have been rejected from large high street lenders, The Mortgage Hive can assist you. We will review your credit report and advise what is available now and also discuss the options to plan for a positive future.
BAD CREDIT MORTGAGES FAQ
The importance of an up to date credit report!
In the United kingdom we have 3 large credit agencies, Experian, Equifax and TransUnion. A credit report from any of these agencies would give us a snapshot of the last 6 years of your credit history.
We recommend that you obtain a credit report from Checkmyfile if you do not have a recent report. Checkmyfile allows you to check all of your credit information from the 3 largest credit agencies in one report. It also generates a downloadable PDF credit report which you can send to one of our mortgage advisers to review. They offer a free 30 day trial.
What Impact Credit Scoring has with Mortgage Lenders ?
At the Mortgage Hive, after viewing your credit report, we can advise you which lenders are most suitable and likely to accept your mortgage application. The larger the deposit you have, the lower score required. This means with a Lender it is possible to be declined with a 5% deposit but accepted by the same lender with a 10% deposit. The larger the deposit the less risk for the lender.
Do all Lender's Credit Score?
Will lenders check my credit history?
We recommend you use Checkmyfile, their report checks the UKs largest credit reference agencies.
What is a good credit score?
- 420 out of 700 for Equifax
- 880 out of 999 for Experian
Anything less than this, you may struggle to be approved for a mortgage with the main High Street Lenders, we will need to look at specialist lenders who offer bad credit mortgages.
Some specialist lenders do not credit score, so if your score isn't great, it's not the end of the world. The Mortgage Hive will help advise you which lenders would suit your circumstance!
You can check your credit score for free through checkmyfile
How to check your credit file
How to Improve your Credit Score?
- Check your credit file & Score
- Check you are on the electoral roll
- Make payments on time
- Reduce your debt
- Do not apply for new credit
What is Bad Credit?
A lender may categorise you as having bad credit if you have a low credit rating, this may be because you do not have a history of having credit.
What are the benefits of contacting a bad credit mortgage broker?
What is a bad credit mortgage adviser?
A good broker will get to know your personal situation including any bad credit, they will use this knowledge of you to find out which lenders would accept your application.
If you have a history of late payments, bankruptcy or have CCJ’s your ability to get a mortgage will be greatly improved by speaking to The Mortgage Hive. We will assess your mortgage application chances with a range of lenders prior to formerly making your application to a lender.
I am a key worker with bad credit, can I get a mortgage?
If you are a self-employed key worker, you will need a minimum of 1 year’s work history. Lenders will look more favourably if you have over 2-years of income history.
Whether you have a history of late payments, bankruptcy or have a CCJ your ability to get a mortgage will be greatly improved by speaking to The Mortgage Hive. We will assess your mortgage application chances with a range of lenders prior to formerly making your application to a lender.
Is it possible to get a mortgage with bad credit?
I have bad credit, Can I get a second mortgage?
Lenders might expect you to have a larger deposit as lenders prefer bad credit borrowers to have lower LTV (loan-to-value) rates. You will need to prove that the income you earn, and your circumstances allow you to repay the requested mortgage amount.
Can I get a low deposit mortgage with Bad credit?
Can I get a mortgage if I have been bankrupt?
Your lender may request a higher deposit, or you may have to pay higher interest rates. We can help you find the right mortgage for you now or possible help you to be in a better position to access one in the future.
My house was repossessed, can I get a mortgage?
Every lender is different, they each have different criteria to determine your eligibility. Some may lend sooner than others following a repossession. We can help guide you to take steps to improve your eligibility, this could include improving your credit score, repaying unsecured debts, saving a bigger deposit, or increasing your income.
Will a CCJ prevent me from getting a mortgage?
Obtaining a mortgage with a County Court Judgement (CCJ) can be challenging but is not necessarily impossible. While lenders are generally wary of lending to borrowers who have such judgements due to the risk associated, certain mitigating factors and lenders offering specialist products may allow for successful applications. Factors that could increase one’s chances of being approved for a CCJ mortgage include proving a good credit history prior to taking out the loan, having no other adverse credit after the CCJ was issued, regular savings record and having gained recent employment. Additionally, because they are perceived as higher risk clients, applicants with CCJs are likely to require larger deposits and may face more stringent affordability checks than usual when securing mortgages.
Can I get a mortgage while I have an IVA?
While the IVA is in place, you may require written permission from the insolvency practitioner before you will be allowed to borrow more money.
Can I get a mortgage with defaults?
Mortgage providers assess everyone's circumstances carefully, taking into account the overall financial profile including income, expenses, and past payment record. In some cases, people may be able to take out mortgages as long as they can demonstrate that their current finances are in order and likely to remain so in the future.
You should be aware that your ability to access finance will still be restricted if there is a significant history of poor payment records and defaults. Our Mortgage advisers can help you review your options to ensure you receive advice tailored to your specific situation.
Are you on the electoral register?
Don’t make late payments!
Reduce existing debt
Stop applying for mortgages, other loans & credit.
Making lots of credit applications close together shows lenders that you are not managing your finances. If you are declined for a credit card or finance, do not reapply immediately, wait a few months to retry.
If there is a mortgage suitable for you, The Mortgage Hive will find it for you.