Mortgage With Previous Bad Credit

Mortgage with Previous Bad Credit

Banks and building societies typically review an applicant's credit rating before granting a mortgage. In general, traditional lenders do not provide mortgages to people with previous bad credit, even if they are capable of making their payments.

Despite bad credit, you may still be able to secure a mortgage if you need finance to complete a property transaction.

It is critical to learn as much as possible about the financial products available to choose the mortgage that is right for you, regardless of your credit score. Consider contacting a professional broker to explore your options. 

Using a Specialist Mortgage Lender for Previous Bad Credit Issues

If you have had previous bad credit issues such as CCJs or missed mortgage payments then you may need to use a specialist lender to help getting on the property ladder.

A mortgage loan from a specialist lender allows you to borrow a certain amount of finance and make monthly payments for a certain period of time.

Specialist lenders typically require a higher deposit than traditional lenders. You will typically need a 25% to 30% deposit if you have bad credit and wish to secure a mortgage with a specialist lender.

A specialist lender will usually require the following information before granting a mortgage:

• Bank statements: To prove your ability to pay, you must provide a certain number of bank statements.
• Proof of income: A number of pay slips will be requested. 
• Private lenders will require at least three years' worth of accounts if you are self-employed.

Checking Your Credit Rating

You can always get your credit rating from a credit rating agency such as Experian if you want to know it. 

Independent Advice

If you are not sure what mortgage options are available if you have previous bad credit speak to our independent mortgage broker team who will be able to offer impartial advice or you can call us on 0117 403 3464