Mortgage Calculator For Poor Credit
Best Mortgage Rates
Mortgage Calculator For Poor Credit
-
-
- 6.14% Initial
- 5 year fixed
- 7.5% APRC
-
Cashback £0Free LegalsFree Valuation
- Get quotes
-
-
-
- 6.19% Initial
- 5 year fixed
- 7.6% APRC
-
Cashback £0Free LegalsFree Valuation
- Get quotes
-
-
-
- 6.24% Initial
- 3 year fixed
- 8% APRC
-
Cashback £0Free LegalsFree Valuation
- Get quotes
-
-
-
- 6.24% Initial
- 5 year fixed
- 7.7% APRC
-
Cashback £0Free LegalsFree Valuation
- Get quotes
-
-
-
- 6.29% Initial
- 3 year fixed
- 8% APRC
-
Cashback £0Free LegalsFree Valuation
- Get quotes
-
-
-
- 6.34% Initial
- 3 year fixed
- 8.1% APRC
-
Cashback £0Free LegalsFree Valuation
- Get quotes
-
-
-
- 6.34% Initial
- 5 year fixed
- 7.8% APRC
-
Cashback £0Free LegalsFree Valuation
- Get quotes
-
-
-
- 6.39% Initial
- 2 year fixed
- 8.2% APRC
-
Cashback £0Free LegalsFree Valuation
- Get quotes
-
-
-
- 6.39% Initial
- 5 year fixed
- 7.7% APRC
-
Cashback £0Free LegalsFree Valuation
- Get quotes
-
-
-
- 6.44% Initial
- 2 year fixed
- 8.2% APRC
-
Cashback £0Free LegalsFree Valuation
- Get quotes
-
How much can I borrow with a poor credit history?
Traditional lenders, such as high street banks, take a different approach to mortgage applications due to the new rules surrounding the mortgage lending market.
Lenders now focus more on affordability, and will require details of the following to support an application:
- Your credit history
- Details of your previous employment
- Proof of your income
- Your monthly outgoings
If you have poor credit, then you can still access a mortgage.
Find out what you could borrow with the mortgage table above.
Why Do UK Mortgage Lenders Care About Credit Scores?
Understanding why credit ratings matter when applying for a UK mortgage is crucial for potential borrowers. Mortgage lenders in the UK typically use individual credit scores to assess the risk of lending large sums of money, & look at factors such as payment history, current debt levels, and financial associations. A poor credit rating score indicates to lenders that you may struggle to maintain regular mortgage repayments, making them less likely to lend to you.
First-Time Buyer Mortgages with Bad Credit: Available Options
For first-time buyers with poor credit, entering the property market presents particular challenges. However, options remain available. Specialist poor credit mortgage lenders often consider applications from individuals with adverse credit history. However, they typically charge higher interest rates to offset the perceived risk of lending to you. Some first-time buyers might benefit from government schemes like Help to Buy, even with imperfect credit, particularly if they can demonstrate a stable income and provide a larger deposit.
Remortgaging Your Home with Poor Credit: What You Need to Know
Current homeowners looking to remortgage with poor credit face different considerations. Having existing equity in their property can work in your favour, as this reduces the lender's risk. However, adverse credit events since taking out the original mortgage might limit remortgaging options or result in less favourable terms. Speaking to an independent mortgage adviser on whether you are better off staying with your current lender or moving away is a good idea. There may be limited options depending on the severity of your poor credit.
How to Improve Your Credit Score Before Applying for a Mortgage
Before applying for a mortgage, it can be time well spent to improve your credit rating to enhance your chances of approval. You can start by obtaining copies of your credit reports from major UK credit reference agencies like Experian, Equifax, and TransUnion. It is advisable to check for any errors on your credit file and have them corrected promptly, e.g. credit agreements which have been paid off but on your report are showing with repayments due. Ensure you're registered on the electoral roll at your current address, as this helps verify your identity and stability.
Quick Tips to Boost Your Credit Rating for Mortgage Applications
A few simple actions can have a significant impact on your credit score. Building a positive payment history is easier when you set up direct debits for regular payments. Reducing unsecured debt levels and staying within credit card limits are signs of responsible financial management. Don't apply for multiple credit cards within a short period of time, as this will further damage your credit score.
Finding Bad Credit Mortgage Brokers: Expert Help for Your Application
Using a specialist mortgage broker can be especially helpful for individuals with poor credit. These professionals have experience with adverse credit cases and maintain relationships with lenders specialising in this market. They can advise which mortgage lenders will consider your application and help present your case in the most favourable light.
When to Apply: Timing Your Bad Credit Mortgage Application
Getting your timing right is crucial when applying for a mortgage with poor credit. If possible, wait until serious adverse credit events (like CCJs or defaults) are at least three years old, as their impact on your application decreases. Meanwhile, focus on building a substantial deposit, as a larger deposit payment can help offset the risks associated with poor credit. For example, if you are a first-time buyer, a 10% deposit will give you a better chance of getting approved than a 5% deposit.
Getting Professional Help with Poor Credit Mortgages
If you have a poor credit history, it's worth thinking about seeking professional financial advice. Your mortgage application can be strengthened by developing a solid financial plan and demonstrating improved money management skills.
Keep in mind that while obtaining a mortgage with adverse credit can be difficult, it is still possible. In recent years, the mortgage market has introduced new options for individuals with less-than-perfect credit histories. By being realistic about your options, preparing thoroughly, and seeking professional guidance, you can still achieve your goal of property ownership, even if your credit history isn't ideal.
How to calculate mortgage repayments
You can find out exactly how much you need to pay each month by using our mortgage calculator.
To see what mortgages you could access, complete the mortgage calculator fields. Enter the purpose of your mortgage, the value of the property, the amount you wish to borrow, the type of mortgage you want (either capital and interest or interest only mortgage, the length of mortgage, to see what mortgages are available to you.
If you want to explore your mortgage options, it is a good idea to speak to an independent mortgage broker who will be able to offer impartial advice.