Getting a Mortgage When you have Poor Credit
Although more difficult to place, it is still possible, in some cases to obtain a mortgage with less than perfect credit. We understand that in some cases, debt problems have arisen through no fault of your own, and we want to help where we can
Whenever there are any credit issues, the percentage loan to value is likely to be reduced. Depending on the nature of the credit problem, many high street lenders may not lend at all, and it is usually more difficult with lenders that rely on computer based credit scoring systems.
If the problem only relates to the odd late payment and this is over 2 years ago, then there will be a greater choice of lender. Late payments in the last 2 years, and especially in the last 12 months indicate a recent problem that may be ongoing. This would vastly reduce your choice of lender.
Other problems like defaults are more serious, but again, there is more hope if they were over 3 years ago, and if the default was not above a certain amount.
If the credit issues are quite recent, high in number, or more serious, such as defaults, and county court judgements, only specialist lenders may consider it. Even then, the loan to value offered may be much lower, at around 65% or 70% for example. The interest rates and lender fees are also likely to be quite high.
In cases of bankruptcy, or trust deeds, then it is common for the few lenders who can look at it, to require a period of at least 1 year to have elapsed since being released from one of these arrangements, before it can be considered. Individual Voluntary Arrangements, (IVA’s) are likely to be regarded in a similar way. Again, rates and fees are usually much higher than a normal mortgage.
This is a complex area, and one where we can help to ensure you still get the fairest deal possible, and maybe get a result for you that you thought was not possible. We have a range of specialist lenders to choose from, each with their own different set of capabilities. Over time, we would aim to help get you back to a mainstream lender.
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As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments.
Think carefully before securing other debts against your home. Your property may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
For mortgages there will be a fee of usually £100, and we will also receive a payment from the lender.
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The FCA does not regulate loans and some forms of Buy to let mortgages