How to get a mortgage with bad credit

We all want the security of owning our own home, but when you have a poor credit history it can seem a dream that’s out of reach.

However, it’s not necessarily impossible to secure a mortgage even when you have a low credit score.

Let’s take a look at how mortgage brokers like Simply Adverse can help you secure a bad credit mortgage.

Do You Qualify?

Take Our Online Quiz >>
It's quick & easy. No credit check or upfront fee.
*95% Max LTV. IVAs or Ex-bankruptcy 85% Max LTV

Understanding bad credit

It’s probably worth starting by clarifying what we mean by ‘bad’ credit. As we mentioned above, we generally think of someone having ‘bad’ credit if they have negative credit information recorded against them. This can be caused by things such as having credit card accounts in arrears, missing mortgage payments, bankruptcy or County Court Judgements (CCJs). If you have ‘bad’ credit, you’ll probably find that you are turned down for financial products such as loans, credit cards or mortgages. This is because you are seen as a risk to the lender.

A ‘poor’ credit score or ‘bad’ credit is, in many ways a misnomer, as different lenders will take different factors into account. However, requesting a copy of your credit report, detailing your credit history and score, can help you, and a broker, understand your options, and which lenders may be the most suitable for you.

What is a bad credit mortgage?

A bad credit mortgage works in the same way as any other mortgage, but as the borrower is seen as a greater risk to the mortgage lender it may have less favourable terms. For example, you will probably discover that the interest rates are higher than many of the mortgages offered by high street lenders.

You could also find that you are required to have a higher deposit than you will need for other mortgage products.

Having said that, as more specialist lenders enter the marketplace, a broker with experience in working in the adverse credit sector could be able to secure you a mortgage with terms not too dissimilar from ‘standard’ mortgages.

Read Our Latest Reviews...

Turn your mobile to landscape to read them.
call 01245 330163 For A Free Quote
Lines Open: Mon-Fri 09:00-20:00 and Saturday/Sunday 09:00-17:00. Alternatively request a call back at a time convenient to you.
Contact Us
Do You qualify?
It's quick & easy. No credit check.

So, I can apply for a mortgage with ‘bad’ credit?

As with all financial products, the exact answer to that depends on your individual circumstances. However, as we’ve already explained there are lenders who specialise in providing mortgages to people with a poor credit history, so that poor credit history doesn’t prevent you from getting a mortgage.

get a mortgage with CCJ

Who should I speak to if I want to find a ‘bad credit’ mortgage?

A specialist mortgage broker like Simply Adverse has access to lenders who specialise in providing mortgages for people with poor credit histories. We’ve already mentioned that different lenders have different criteria, and take different factors, into account. Specialist brokers have more in-depth knowledge of individual lenders’ requirements, helping them determine who might the most appropriate lender for your circumstances.

This is also a fast-changing market, with criteria changing regularly. A broker working in this sector will have the most recent information regarding each lender’s conditions.

You should also look for a broker who is not tied to a particular lender, or panel of lenders, again this will give them a wider choice of mortgage products

What’s the Simply Adverse process?

When you contact Simply Adverse you will be allocated your own broker who will work with you to find the most competitive mortgage product for your circumstances. We don’t charge any upfront fees, so there’s nothing to pay yet.

We’ll want to look at your credit report (you can check this yourselves here free and talk about the background to your adverse credit. As we don’t conduct a credit check at this stage, this won’t appear on your credit record. As we always stress, it’s absolutely vital that you are completely upfront about both your current financial position and your financial history.

Once we’ve spoken to you and taken a good look at any documents you’ve provided, we’ll recommend an appropriate mortgage. There will be a point when a credit search will be necessary, but we’ll always get your permission before carrying it out.

I’m not sure if it’s a good idea to get a mortgage if my credit history is poor

Your credit history is just that. A ‘history’ of your past financial behaviour. There is no reason why this should dictate how you approach the future. In our experience, if you are considering a new mortgage, and have faced the reality of your previous bad credit, then you have probably addressed many of the problems that caused your issues. People move on, circumstances change, and there is no reason why you should be a prisoner of your past credit history.

Will I always need a bad credit mortgage?

Only if you continue to have a poor credit history. Assuming you are accepted for a bad credit mortgage, keeping the payments on it up-to-date can help you improve your credit score. This means that in the future you may be able to move to ‘standard’ mortgage. Obviously, this will depend on at what point you choose to remortgage. When that time comes the brokers at Simply Adverse will be able to advise whether you would still need to consider a specialist adverse credit mortgage. If you don’t, we can pass you over to our colleagues at Simply Lending Solutions. This means you won’t have to explain your entire mortgage history to a new broker.

call 01245 330163 For A Free Quote
Lines Open: Mon-Fri 09:00-20:00 and Saturday/Sunday 09:00-17:00. Alternatively request a call back at a time convenient to you.
Contact Us
Do You qualify?
It's quick & easy. No credit check.

How to get a mortgage with bad credit: Our Top Tips

Use a specialist broker

Specialist brokers are used to dealing with people in your situation. They will have access to a wide range of adverse credit lenders, which will enable them to find the most appropriate product for your individual circumstances. This is a market that changes very quickly. A specialist broker will be up to speed with the differing criteria that lenders expect borrowers to fulfil.

Be honest

Don’t try and hide anything from your broker. Being upfront about the causes of your bad credit history, and your current financial position will enable your broker to find you a deal you can afford. This will help reduce the risk of you falling into arrears, and further damaging your credit score.

Face your problems

Again, honesty is key. Be realistic about why you’ve had problems with credit in the past. Make sure you take a full look at your credit report, to really understand what mistakes you’ve made before, and how you can avoid them as you embark on applying for a new mortgage.

Start to repair your credit history

Use your new mortgage as a new start. One of the best ways to repair your credit history is to ensure that you keep up to date with your mortgage payments. If you’ve followed our advice up to this point, any mortgage you are accepted for should be serviceable by you.

Other steps you can take to repair your credit history are to close any credit accounts that you don’t use, ensure that you’re on the electoral roll and make sure that you pay all your bills on time. Checking your credit report regularly will let you see the progress you are making, as well as letting you check that all the information held on you is accurate and up-to-date.

Want to know more?

To find out about our full range of bad credit mortgage services, take the Do You Qualify for a Bad Credit Mortgage quiz or read more about bad credit mortgages.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Terms & Conditions

Fees vary according to individual circumstances and we will agree our fees with you before we undertake any chargeable work. This fee is for advice, research, recommendation, implementation (e.g. application, administration of arranging the loan). We will also be paid by commission from the lender.

Our typical broker fee is £1995. We typically charge up to 6% of the loan amount, dependent upon the severity of adverse credit and the lender being used. For example, on a loan of £100,000 we would charge up to £6000.

For second charge mortgage applications our typical broker fee is £1995. We typically charge up to 10% of the loan amount, dependent upon the severity of adverse credit and the lender being used. For example, on a loan of £40,000 we would charge up to £4000.

Our fee is payable upon receipt of your mortgage offer, we do not charge any upfront fee for identification of any potential solutions.

Legal Information

Simply Adverse is a trading style of Simply Investment Ltd. Simply Investment Limited is an Appointed Representative of Simply Lending Solutions Ltd who are authorised and regulated by the Financial Conduct Authority FSR Number 745164. 

The guidance and/or advice contained within this website is subject to the UK regulatory regime, and is therefore targeted at consumers based in the UK.

Simply Investment Ltd. Registered in England and Wales Company no: 06528590. Registered Office: Runwell Hall Farmhouse, Hoe Lane, Rettendon Common, Essex, England, CM3 8DQ.

Simply Adverse
15 Runwell Hall Farmhouse
Hoe Lane
Rettendon
Chelmsford
Essex
CM3 8DQ

Email: info@simplyadverse.co.uk
Tel: 01245 330163

Help and Advice

Disclaimer

All content on the Simply Adverse website is believed to be accurate at the time of publication. However, this is a fast-moving sector and lender criteria and policies change regularly. For this reason, we always recommend that you speak to one of our brokers for the most up to date information.

Articles can only ever provide general information and do not constitute financial advice. Our mortgage brokers are fully regulated by the Financial Conduct Authority, and it is only by speaking to them that you will receive advice and information tailored to your individual circumstances. Your home may be repossessed if you do not keep up with repayments on your mortgage.

You should always think carefully, and seek professional advice, before securing other debts against your home or releasing equity from your home.

Copyright © 2016-2019 SimplyAdverse.co.uk.
Simply Adverse Facebook PageSimply Adverse On TwitterSimply Adverse on Linkedin