Mortgages with Low Credit Score
Best Mortgage Rates
Mortgages with Low Credit Score
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- 3.89% Initial
- 5 year fixed
- 5.9% APRC
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Cashback Max £1,250Free LegalsFree Valuation
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- Lloyds Bank
- 3.92% Initial
- 5 year fixed
- 6.7% APRC
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Cashback Max £250Free LegalsFree Valuation
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- 3.92% Initial
- 5 year fixed
- 6.4% APRC
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Cashback £0Free LegalsFree Valuation
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- 3.94% Initial
- 5 year fixed
- 6.4% APRC
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Cashback £0Free LegalsFree Valuation
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- 3.97% Initial
- 5 year fixed
- 6.5% APRC
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Cashback £0Free LegalsFree Valuation
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- 3.98% Initial
- 5 year fixed
- 6% APRC
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Cashback £0Free LegalsFree Valuation
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- 3.99% Initial
- 5 year fixed
- 6.5% APRC
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Cashback £0Free LegalsFree Valuation
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- 4.00% Initial
- 5 year fixed
- 6.8% APRC
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Cashback £0Free LegalsFree Valuation
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- 4.00% Initial
- 5 year fixed
- 5.9% APRC
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Cashback £0Free LegalsFree Valuation
- Get quotes
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- 4.00% Initial
- 2 year fixed
- 6.7% APRC
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Cashback £0Free LegalsFree Valuation
- Get quotes
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Mortgages with Low Credit Score
Get the best mortgage deals with a low credit score
Getting a mortgage deal with a low credit score is still possible - you just have to approach the right mortgage lenders.
When you have a low credit score, how difficult is it to get a mortgage?
Lenders who lend large amounts of money for a mortgage understandably want to minimize their risk. When you apply for a mortgage, your previous credit history will be examined in order to determine if you have been a good borrower in the past and if you have made on-time repayments. Mortgages with low credit scores may be difficult to obtain for the following reasons:
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Missing mortgage payments in the past.
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Missing rental payments in the past.
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Missing credit card payments in the past.
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An outstanding or expired County Court Judgment (CCJ). Being bankrupt at any point.
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Having no history of borrowing.
Mortgages with low credit scores are available, but you need to be realistic about the rates and terms you will receive. Low credit score mortgages typically feature the following features:
It is common for bad credit mortgages to have higher interest rates than standard mortgages.
The minimum deposit requirement is usually 25% or 30% of the property's value, compared to around 5% to 10% if you were applying for a standard mortgage.
Before you apply for a loan, improve your credit rating
When applying for a mortgage, it is a good idea to ensure that your credit rating is as good as possible. Getting a mortgage may still be possible even if you have a low credit score. The following are examples:
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Make sure you are on the electoral roll and that your address and details are accurate.
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Make sure there are no errors on your credit report that are making your credit history appear poorer than it is.
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Pay off as much credit card debt as you can. You should cancel any unused credit cards.
Is it possible to improve your credit score with a mortgage if you have a low credit score?
After finding the mortgage for low credit score that you want, and being accepted, you may be able to repair your credit rating over time.
In the next few years, if you make timely mortgage repayments in full and don't default on any other debts, such as credit cards, your credit score will improve.
When you remortgage or apply for a new mortgage, you may be eligible for much better interest rates and terms.
The process of obtaining a mortgage with poor credit scores may be easier if you obtain specialist, independent advice before applying.
To investigate your finance options call our broker team or fill in our call back form - speak to our independent mortgage broker team who will be able to offer impartial advice or you can call us on 0117 403 3464