Can you get a mortgage with bad credit?

If you have had missed payments, defaults, county court judgments (CCJ), payday loans, an individual voluntary arrangement (IVA), debt management scheme, or been made bankrupt in the past six years, getting a bad credit mortgage is still possible. The options available to you will be based on the severity of your credit problems, the date they were first registered on your credit file and if you meet the lenders’ criteria.

If you have a poor credit history, many High Street banks will be unlikely to lend to you. However, specialist mortgage lenders are more lenient and will gladly consider your mortgage application. They may ask for a larger deposit and charge a higher interest rate. But if you keep up your repayments, you should be able to remortgage to a better deal when your current mortgage expires.

Applying for a mortgage with bad credit

Using a specialist broker to help maximise your chances of securing a mortgage, is advisable when applying for an adverse credit mortgage. They know each lenders’ criteria, which could help you to avoid having any declined applications on your file, if you need to work on improving your credit before you can get a mortgage.

At Fosters Financial, our bad credit mortgage brokers take the time to understand your individual circumstances and only apply for a mortgage on your behalf, if we think your application has a good chance of being accepted by the recommended lender. If we cannot help you, we will tell you how you can improve your credit score, so you can increase the chances of your application being approved in the future.

Remortgaging with bad credit

If you have missed payments or found yourself in financial difficulty since applying for your last mortgage, your options will generally be more restricted. But remortgaging with bad credit is certainly possible with our help.

With access to exclusive deals which cannot be obtained on the High Street or comparison sites, our adverse mortgage specialists will search the whole of the market to find the best bad credit mortgage deal for your needs. Similarly, if your current mortgage is with a specialist lender and your credit rating has improved, our poor credit advisors can help you to discover whether it is possible to remortgage with a High Street lender or not.

Bad credit first time buyer mortgage

If you are applying for your first mortgage and have bad credit, seeking professional advice is certainly worthwhile. As a first time buyer, you will generally be considered a higher risk by mortgage lenders, and any adverse credit on your file will significantly decrease the number of lenders who would be prepared to lend to you. If you are also struggling to save a large enough deposit and are looking to buy a home through a government initiative like the Help to Buy scheme, the number of lenders available to you diminishes even further.

Using a specialist mortgage broker like Fosters Financial, can help you to secure a first time buyer mortgage with poor credit. With access to adverse mortgage lenders who cannot be found on the High Street, they could help you to secure a mortgage, even if you have been previously turned down.

Shared ownership mortgage bad credit

The Shared Ownership scheme was introduced by the government to help people who cannot afford to buy a home to purchase a share in one. As most lenders will automatically see you as a risk, securing a shared ownership mortgage with poor credit can be difficult. But a whole market mortgage broker will have access to a range of specialist mortgage lenders who would be willing to consider your application, which is where we can help!

Right to buy mortgages with bad credit

Having adverse credit such as CCJs, defaults or missed payments, can make obtaining a Right to Buy mortgage more difficult. Many high street lenders will see you as too much of a risk to lend to. But there are a growing number of specialist mortgage lenders who will take the time to look at your file, before making their assessment. If you meet their criteria and can prove that you can afford the mortgage, then they should be more than willing to lend to you, which a right to buy mortgage broker like us can help you with.