Bad Credit Mortgage
Obtaining a mortgage with poor credit history
Are you looking for a UK mortgage, but your credit history is poor? If so don’t despair; our specialist team at Anderson Reed Mortgages can help you to get on the property ladder!
According to 2024 statistics, there were 6.92 million people living in the UK with an adverse credit history. In most cases this will exclude you from mainstream “prime credit” mortgage lenders and historically, you may have been in a situation where you have no further options available to you. However, certain lenders are now offering specialist mortgages for people that have poor credit, although much will depend on what issues a person has or has had in the past.
One very important positive fact to consider is that if you can obtain a mortgage, this is one of the very best credit agreements to have on your current credit history and this will also help to repair and increase your credit score as you move forwards in life.
What type of issues affect my credit score and history?
Everyone has their own individual credit history. This is built up gradually as you move through life and any official credit agreement is recorded, together with how you maintain your regular monthly payments.
Unfortunately, your credit history can be affected every easily and all the good work that a person puts into building a good credit profile can be destroyed very quickly and easily. The below list is not exhaustive but will give you an idea of the issues that change your credit score from excellent to poor.
- Personal Bankruptcy in England, Ireland, and Wales
- Sequestration (the Scottish version of Personal Bankruptcy)
- Individual Voluntary Arrangement (IVA’s)
- County Court Judgements (CCJ’s)
- Debt Management (formal or informal agreement)
- Debt Relief Orders (DRO’s)
- Late Payments on any official credit agreement
- Payment Defaults
- Identity Theft Issues
- Incorrect Credit Profile Entries
- Financial Links
- CIFAS Information
Most of the above credit issues have one thing in common; they all remain shown on your credit profile for a period of 6 years. In many cases this can immediately result in an automatic rejection from mainstream mortgage companies. This can be a very frustrating situation to deal with as in some cases, an incorrect credit profile entry can impact on a person massively and this type of data can be very time consuming to deal with and rectify. So, what can you do to move forwards?
The answer is to take some specialist advice from people that can help. Here at Anderson Reed, we look at each application on an individual basis and talk to you in a straightforward manner that is easy to understand. We do not make immediate decisions and we are happy to spend time with you explaining how this process works and finding you the best products for your situation.
Specialist Mortgage Department-Adverse Credit
The first step in our unique process involves one of our friendly advisors calling you to discuss your current situation. Our expert advisors understand how credit history works and what can be done in each particular case. We need to have a good understanding of the issues shown on your credit profile as this will then identify which lenders we have on our specialist panel that may be suitable to help you.
As we work under the regulations set by the Financial Conduct Authority (better known as the FCA) you can rest assured that you are dealing with a reputable company. We will also look at the best mortgage deal for you as an individual; not the best deal for us as a mortgage broker. One of the key elements that the FCA have incorporated into financial services is that customers must be treated fairly. This means that all fees are transparent, we provide the best advice for the individual, and we work within strict rules that are designed to protect you as the customer.
The initial stage of this process is free of charge and will involve you obtaining a recent copy of your credit history so we can carry out an in-depth analysis for you. There are many companies that provide credit reports, and these are all driven by the three main Credit Reference Agencies (CRA’s) which are Equifax, Experian, and Transunion.
We work with a specialist company that will merge all of your data from all three CRA’s into one comprehensive credit report and the best thing is that this can be obtained for free (if you have not used this service before).
The Company that we use is called Check my File and you can access your free credit report by using the following link ( www.checkmyfile.co.uk ). If you want to continue to access your credit report after the initial free trial, there is a small monthly fee of £14.99 or the service can be cancelled. If you are looking at updating or repairing your credit profile, the monthly service is very useful as it will give you continual access to your information as well as help dealing with issues shown within the data.
Contact us now and take the first step towards your new mortgage!
Think carefully before securing other debts against your home.
Your home may be repossessed if you do not keep up repayments on your mortgage.
The answer to this is yes but subject to certain conditions. The team at Anderson Reed have a specialised department to assist you if you have had some past issues with debt. One of the main factors will be whether the debt is now fully paid off and if so, when the debt management plan finished.
Call or contact us now for some free help and advice and let us assist you onto the property ladder.
If you are currently in bankruptcy and not yet discharged, you won’t be able to obtain a mortgage. You will need to wait until you are officially discharged from bankruptcy; normally 12 months after the start date. Once you have been discharged from bankruptcy, you can look at repairing your credit and start to consider the mortgage options that are available to you. We will work with you and consider your best options and if a mortgage can be obtained, this will be an excellent way to start your credit repair process as well.
Call or contact us now for some free help and advice and let us assist you onto the property ladder.
It is possible to get a mortgage after having a Debt Relief Order (DRO). A DRO is an official Insolvency solution and in the same way as bankruptcy or an IVA they will impact on your credit rating for six years from the start date. However, with our specialist knowledge and assistance, we will be able to consider your current position and look at our panel of lenders to see who may be able to help you.
Call or contact us now for some free help and advice and let us assist you onto the property ladder.
Your credit profile will affect the mortgage rate that is offered to you. In simple terms the lender will consider that you are a higher risk in comparison to someone with a perfect A1 credit rating. The good news is that it is possible to get a mortgage with a poor credit record, but much will depend on what the problem is or was at the time. The good news is that our specialist team will always keep an eye on your situation. As soon as you begin to rebuild your credit, we will then look at a re-mortgage with a lower rate of interest. If you maintain your regular monthly mortgage payments you will be able to move onto better products with lower rates of interest.
Call or contact us now for some free help and advice and let us assist you onto the property ladder.
A County Court Judgment does have an impact on your credit. However, a mortgage is still possible. Our specialist mortgage lenders will look at your case on an individual basis which is exactly what is needed here. Some CCJ’s can be for a very low amount of money and may have been applied without your knowledge. It will always help if the CCJ has been paid off/settled and each case is individual and must be assessed before we can decide if we can assist.
Call or contact us now for some free help and advice and let us assist you onto the property ladder.
If you do not have much active credit, it can sometimes be hard to obtain new credit agreements, even if you are a wealthy individual with no past credit issues. This is because the lender does not know how you handle credit agreements or regular payments as they have no history to base their decision on. Our team has good knowledge of these unusual situations and will be able to help you with advice and to find the best lender and rate for you.
Call or contact us now for some free help and advice and let us assist you onto the property ladder.
The specialist lenders that we use for people with adverse credit will regularly change the criteria for supplying mortgages to people that have been through bankruptcy. You may need a higher deposit amount if you are looking at obtaining a mortgage shortly after bankruptcy so contact us to discuss your circumstances and we can look at the latest information and guide you through this process.
Call or contact us now for some free help and advice and let us assist you onto the property ladder.
The answer to this is yes but subject to certain conditions. When buying an investment property, the same basic rules will be in place when applying. Credit rating and deposit will play a part in the decision-making process, but when you complete an IVA your credit rating will be improving massively over the next 12-24 months when the IVA clears from your credit history. At this stage, we will be looking at re-mortgaging you to a better product with a lower rate of interest.
Call or contact us now for some free help and advice and let us assist you onto the property ladder.