What Are Our Adverse Credit Mortgage Calculator Tools?
Our mortgage calculator for UK bad credit applicants will give you a snapshot of how much you may be able to borrow based on your income, and that of your partner if you have one.
Our online bad mortgage qualification quiz is more sophisticated and takes into account more details such as how much deposit you have, your employment status and, importantly, details of any adverse credit events such as defaults, CCJs or bankruptcy.
How to use the Simply Adverse Bad Credit Mortgage Calculator Tools
If you’ve seen a property that you are interested in, the bad credit mortgage loan calculator will give you a sense of whether your household income will be enough to allow you to find a mortgage that will cover the purchase price, minus any deposit you may have of course. Although this is just an indication, it can save you wasting time looking at properties that are well out of your price range.
Once you’ve asked the mortgage calculator ‘how much can I borrow’?, and have found a property within your budget, the next step is to determine whether you are able to find a lender willing to lend to you. The Simply Adverse quiz is designed to consider a range of factors that may influence what mortgage you may be able to get. Most importantly you will be asked about your previous financial behaviour, to determine which bad credit incidents may impact your application. While it bears repeating that no online tools can give a definitive answer about how successful a mortgage application will be, we believe our quiz does give you a fairly accurate indication of your position.
How the quiz helps you
This way we are clear on the sort of information we need to be able to progress a mortgage application for all types of customers with bad credit history.
The quiz helps us find out: –
- What type of mortgage you’re looking for
- Whether you already have a property in mind
- The property price and your deposit
- Whether you’ve been bankrupt
- Other bad credit history that you’re already aware of
- Whether you have a recent copy of your credit history report
- Details about you and your financial situation
Step 1: Can You Afford It?
Our mortgage borrowing calculator will give you an estimate of the size of mortgage you can get through our whole of market network of lenders. Enter your income/bonus details and click the ‘Calculate’ button.
This is only an indication, and you should contact our experienced independent advisors to get an accurate assessment based on your personal situation, credit history and the property upon which the mortgage is to be raised.
Step 2: The Simply Adverse Quiz
What May Affect Your Chances of Finding a Bad Credit Mortgage?
When lenders look at a mortgage application there are some factors that are common to all applicants. We’ve already discussed how your household income will determine how much you will be able to borrow. Lenders will also want to take a look at your outgoings, to get an idea of how much money you would have available each month to meet any repayments on your mortgage.
A mortgage lender will also want to assess the risk of you defaulting on your mortgage. This is done by taking a look at how you have handled credit in the past, with the reasoning being that, if you have struggled with managing your finances before, you may do again.
However, all bad credit isn’t created equally. When we consider which mortgage you may be eligible for we take into account the level of your adverse credit. We’ve divided these levels into 3 broad categories as follows.
Low adverse – a level of adverse credit typically exemplified by missed credit card payments, low credit score or long settled defaults.
Medium adverse – this level may include issues relating to telecommunications and/or defaults and CCJs that are at least a year old.
High adverse – adverse credit with a high level of serious adverse credit issues, e.g. Mortgage arrears, multiple/recent occurrences of adverse credit and/or bankruptcy.
Which Lenders Do We Work With?
As Simply Adverse are whole of market brokers we aren’t tied to a panel of lenders, meaning we can access an extensive range of mortgage deals, including deals that are only available through a mortgage broker.
The lenders we work with include high street lenders, specialist lenders and adverse specialist lenders. When considering which lender to apply for a mortgage to, we will take into account your individual circumstances, for example whether you have access to a larger deposit or the state of your credit report, and apply to the type of lender most likely to result in success.
Interest rates and mortgage terms vary between types of lenders, although there is some overlap. In general the lender profiles are as follows.
High Street lenders are familiar brands such as Halifax & Barclays. These mortgage lenders typically offer the best rates, but usually demand the healthiest credit profile There may be some overlap with specialist lenders.
Specialist lenders often refer to themselves as being ‘near prime’. They fall between high street lenders & adverse specialist lenders, offering relatively competitive interest rates with some flexibility on credit profile.
Adverse specialist lenders are the lenders most likely to approve applications from people with even very poor credit scores, including applicants with a history of bankruptcy. As a result they tend to have less favourable interest rates.
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Talking to a Broker at Simply Adverse
Although we are sure that our mortgage calculation tools are as accurate as possible, they can still only ever give you a general picture. For tailored advice you should speak to a broker at Simply Adverse who will be able to use their skills and knowledge to secure you the best deal possible.
Got Mortgage Questions?
If you’re not sure whether you are ready to speak to a mortgage broker yet, log onto our forum and take the first steps towards reaching your property goal.
Examples of Bad Credit Mortgage Rates
In addition to allowing our customers to ask the mortgage calculators ‘how much can I borrow with bad credit’, Simply Adverse have also pulled together an example of some of the mortgage interest rates that may be available to you according to the type of lender and your level of adverse credit. As always these are indicative rates only, and you should spark to a broker to find out the range of options available to you.