Bad credit mortgages

Embarking on the journey of applying for a mortgage with bad credit might seem like uncharted territory, but rest assured, it’s not as impossible as it may appear. While the process shares similarities with any other mortgage application, the key difference lies in the challenge of finding lenders willing to extend a helping hand to those with less-than-perfect credit histories, given the associated risks.

At Mortgage Decisions, we firmly believe that a blemished credit history shouldn’t shatter your dreams of owning a home. The notion that bad credit is an insurmountable hurdle is far from accurate. In fact, bad credit mortgages are designed precisely to bridge the gap between aspiring homeowners and the keys to their dream properties.

In the realm of modern lending, an increasing number of lenders are adopting a more personalised approach. They look beyond the cold numbers of a credit score and delve into affordability assessments and manual applications.

This approach seeks to discern the whole picture, potentially allowing for an override of a low credit score. So, even if your credit history is far from perfect, or if you’ve encountered rejection elsewhere, there’s hope on the horizon.

The good news is we can help

And here’s the beacon of good news: We are here to be that hope for you. The belief that past credit challenges can shroud your chances of securing a mortgage for a new home is one we are determined to dispel.

Whether it’s missed payments, County Court Judgements (CCJs), odr even circumstances as complex as an Individual Voluntary Arrangement (IVA), Debt Relief Order (DRO), or Debt Management Plan (DMP), we’re here to extend a hand of support.

At Mortgage Decisions, we see potential where others see obstacles. Our dedicated team is experienced in navigating the intricacies of bad credit mortgages, and we’re committed to turning your homeownership aspirations into a tangible reality.

Don’t let past credit hiccups hold you back – your journey to homeownership begins here.

Call us now on 03454 500200, alternatively, click here and complete this short form about yourself. We’ll be in touch very shortly. With business partners nationwide, you are never too far from financial advice.

Yes, it’s possible to get a mortgage even if you have a poor credit history or no credit history at all. While having a solid credit history can improve your chances of securing a mortgage with favourable terms, there are lenders who specialise in bad credit mortgages.

These lenders assess your application based on a broader view of your financial situation, including your current stability, income, and affordability. However, it’s important to note that the terms of the mortgage might differ from those offered to individuals with better credit scores.

Your credit score gets calculated through a points system, relying on the contents of your credit report.

Getting a mortgage with bad credit involves several steps:

• Assess your finances: Begin by understanding your current financial situation. Evaluate your income, expenses, and any outstanding debts.
• Check your credit report: Obtain a copy of your credit report from companies like Experian to identify any inaccuracies and assess your credit score. This will also help you understand the factors contributing to your bad credit.
• Improve your credit score: If possible, take steps to improve your credit score. This could include making timely payments, reducing outstanding debts, making sure you are on electoral register, and addressing any errors on your credit report.
• Research lenders: Look for lenders who specialise in bad credit mortgages. They have experience working with individuals with less-than-perfect credit histories.
• Demonstrate affordability: Highlight your ability to afford mortgage payments by showcasing a stable income and employment history.
• Prepare documentation: Gather the necessary documents, such as proof of income, employment history, and details of your financial commitments.
• Seek professional advice: Consider consulting a mortgage broker (Mortgage Decisions) or financial advisor who specialises in bad credit mortgages. They can help you navigate the process and identify suitable lenders.
• Apply and negotiate: Apply for the mortgage with selected lenders. Be prepared to discuss your credit history and provide explanations for any credit issues. Negotiate terms that work for your situation.
• Compare offers: Evaluate mortgage offers based on interest rates, fees, and repayment terms. Choose the one that aligns with your financial goals.

1. Higher interest rates: Bad credit mortgages often come with higher interest rates compared to traditional mortgages. This can lead to increased long-term costs.
2. Limited lenders: The pool of lenders offering bad credit mortgages is smaller, which can limit your options and potentially result in less favourable terms.
3. Larger deposit: Lenders might require a larger deposit to mitigate the risk of lending to individuals with bad credit. This can be a financial challenge.
4. Fees and charges: Bad credit mortgages might involve additional fees and charges, such as higher arrangement fees and valuation costs.
5. Stricter criteria: Lenders might impose stricter criteria for approval, including more comprehensive affordability assessments and detailed documentation.
6. Less flexibility: Bad credit mortgages might come with less flexible terms, such as restrictions on overpayments or early repayments.