Bad Credit Mortgages

You can judged to have bad credit for many reasons – it can even be just because you do not have a credit history at all!

A history of late or missed payments on bills or other mortgages can also lead to bad credit ratings, as can county court judgements (CCJs) or being declared bankrupt.

Such factors were previously seen as flaws and you would be refused a mortgage outright. However, lenders are now more open to assessing each case before making a decision and at MortgageKey we have a brilliant track record of finding lenders in these circumstances.

Bad credit mortgages are much like a standard mortgage. The only real difference is that they are designed for anybody with a previously poor credit history or those who have found it difficult to get approved for a mortgage in the past. One of the best things about bad credit mortgages is the variety in which they come. Selecting from fixed rate, variable rate or discounted rates. Rates are adapted according to each individual circumstance and a deal is then packaged to suit.

These are very specific mortgages which are designed for anybody with a previously poor credit history, or those who have found it difficult to get approved for a mortgage in the past. Bad credit mortgages come in a variety of offers, from fixed-rate, variable rate or discounted rates. Rates are adapted according to each individual circumstance and a deal is then packaged to suit your needs.

It is important when seeking a bad credit mortgage to compare all the available offers out there, by doing this you will have a better idea of what kind of mortgage deals are available and therefore you should know roughly what to expect to pay.

Yes, you can take steps to check your credit history and ensure it is accurate. If it is not accurate you should contact the relevant credit agency and advise them of the changes which need to be made.

Check that all outstanding and closed balances are accurate, that there is no record of fraudulent activity against your name which shouldn’t be there, and that your address history is correct. It is also good practice to close off any credit accounts you no longer use, this shows you have been able to repay in the past and close the account, which appeals to lenders. Essentially, lenders look for people who have shown good financial management of their previous loans by paying what they owe each month and living within their means, and not regularly stretching beyond credit limits. Being on the electoral register is also helpful, as it is another verification of your identity. When it comes to the application for a mortgage, have an explanation ready as to why you got into financial trouble and had debts, and what has happened since then to put things on a more stable footing.

Another solution would be to pay off your debts by increasing the minimum payment or paying a lump sum. This demonstrates positive behavior to prospective lenders.

Consolidating your debts into one manageable monthly payment, as part of the Bad Credit Mortgage agreement is another option, however we would advise you to take advice before doing this and make sure the consolidation is appropriate be mindful of consolidating low rate loans with short terms left, again you need to fully look at your circumstances and see if this is appropriate. We have helped many people at MortgageKey, bringing more financial stability to their lives.

This is one of the areas where the advice and help of a specialist bad credit mortgage broker will come in use, as they have access to a wide network of mortgages and second charge mortgages, beyond the well-known High Street names who may not be willing to give you a bad credit mortgage.

At MortgageKey, we have a track record of securing bad credit mortgages with lenders and so have an established reputation of making these types of bad credit mortgages work for both parties. We ensure the application process is as simple and stress-free as possible for our clients, looking to find the most suitable deal and rate for their circumstances. Even if you have a bad credit history and have been rejected in the past, our team of bad credit mortgage advisers are confident of finding a deal for you.

The simple answer is that yes, it is most likely. This is why it's key to consider different options and work with a specialist bad credit mortgage broker who is best placed to do this for you. Interest rates are usually considerably higher than standard mortgages and many lenders will also ask for larger deposits than other forms of mortgages.

You can be judged to have bad credit for many reasons, and it can be for something as simple like not have any credit history at all and have not previously borrowed any money.

A history of late or missed payments on bills or other mortgages can also lead to bad credit ratings, as can county court judgements (CCJs) or being declared bankrupt. It’s also worth remembering that your partner's credit history will be taken into account as well as yours if you are buying a property together, which could have either a positive or negative impact.

A bad credit mortgage is much like a standard mortgage – just perhaps harder to find as it refers to a mortgage being granted even when the applicant has a bad or poor credit rating. If you have had money troubles in the past, or just don’t have any credit history at all, many lenders can be reluctant to support you and may turn you down for a mortgage, as they see you as a risk.

However at MortgageKey, as we listen to the individual circumstances and commit to understanding the detail and requirements of those we serve, and because we work with a large number of specialist mortgage lenders, we have been able to secure mortgages for many people with poor credit history and those who have previously been rejected in the past.

The simple answer is yes. Bad credit Mortgages are complex but you can obtain them, we would always recommend using a bad credit mortgage broker like MortgageKey where the advisers are used to dealing with complex credit histories. At MortgageKey we have full credit search facilities so we are able to look at your credit profile before placing you with a bad credit mortgage lender, this stops us credit searching with other lenders that wouldn't accept you and preventing damaging your credit profile further. We use specialist lenders that are bespoke to MortgageKey and who aren't on other brokers lending panel.

There are many things that you need to consider when getting a mortgage with bad credit, how much deposit do you have? Having a larger deposit will always help you when you are applying for a bad credit mortgage, it obviously depends on the severity of your bad credit but you will be surprised some high street lenders will accept you with a 10% deposit with mild bad credit, certainly if the bad credit is historic or small like a telecoms default or water bill default. If you have had more issues with your credit than you would realistically need 15% to 25% deposit again depending on the severity of your bad credit.

We would, first of all, recommend enquiring with us at Mortgagekey, we have full credit search facilities with Equifax so we can take a look at your credit profile and establish if it is possible to apply for a mortgage. We can also look at your income and we will be able to give you an idea of how much you can borrow.

Secondly, we would see how much money you have as you need at least 10% to 15% deposit before looking at obtaining a bad credit mortgage, you may be able to borrow money from family or friends, most bad credit mortgage lenders accept gifts from families for deposits.

If you are in a position where you can raise the money and you have a good income with a stable job then we should be able to help, your next step would be house hunting.