Mortgage Specialists With Access To Bad Credit Mortgages
We are specialised experts in adverse credit mortgage solutions and can help you secure the funding you need to get on the property ladder.
With over 20 years of experience in the adverse credit mortgage market, we understand the challenges you face and the solutions you need. Whether you have defaults, CCJs, current or satisfied debt management plans, bankruptcy, or IVA, we can consider all circumstances and will find the best mortgage option for you.
How We Can Help
Are you looking to buy your first home or move to a new one but struggling to secure a mortgage because of a poor credit rating? If so, you are not alone. Many people find themselves in this position, which can be frustrating and limiting. Fortunately, we have access to several lenders who can accept applications from people who have had an adverse credit entry registered on their credit life.
At Selective Mortgages, we understand the challenges that people with bad credit ratings face when applying for a mortgage. That’s why we work closely with specialist lenders who offer bad credit mortgages. Our team of experienced mortgage advisers can review your financial situation and help you find the right mortgage to suit your needs.
Is it Possible to get a Mortgage with Bad Credit?
Yes, it’s possible to get a mortgage with bad credit, but it may be more challenging than if you had good credit. While it is still possible to get a mortgage, it requires more effort and may come with some drawbacks.
Each lender has its own set of criteria to define what it considers to be adverse credit. Adverse credit can include a range of issues, from missed payments to home repossession. Lenders will assess your credit history to determine whether you pose a risk to them.
If you have minor credit problems, such as a single late payment on a credit card, it is unlikely to impact your mortgage application. Most lenders will overlook minor credit problems as long as they are not part of a more significant pattern.
On the other hand, if you have more serious credit problems, such as a bankruptcy or county court judgment (CCJ) in the last six years, it can be more challenging to find a lender who will accept you, but we have access to lenders who can accept these types of mortgage applications.
Helping You Get Back on Track
Are you struggling with bad credit and worried that it will prevent you from getting a mortgage? Fortunately, there are specialist lenders who can help you obtain the financing you need, despite your less-than-perfect credit history.
At Selective Mortgages we work with a range of lenders who understand that people’s credit scores can fluctuate for a variety of reasons. Whether you’ve missed payments in the past, defaulted on a loan, or even declared bankruptcy, we have options available for you.
Issues that can impact against your credit score
Your credit score is a numerical representation of your creditworthiness. It’s based on your credit history, which includes factors like payment history, debt levels, and credit utilisation. In the UK, credit scores typically range from 0 to 999, with higher scores indicating better creditworthiness.
When you apply for a mortgage, lenders will consider your credit score along with other factors like your income, employment history, and debt-to-income ratio. The better your credit score, the more likely you are to be approved for a mortgage and to qualify for better interest rates.
Late or Missed Payments
Late or missed payments are one of the biggest issues that can impact your credit score. When you don’t pay a bill on time, it can stay on your credit report for up to seven years. This means that if you miss a payment, it can affect your credit score for a long time.
Mortgage Arrears
If you have a mortgage and fall behind on your payments, it can lead to arrears. Arrears are when you owe more than one payment on your mortgage. If you’re in arrears, it can be difficult to catch up and can lead to a negative impact on your credit score.
Previous Repossessions
If you’ve had a car or another item repossessed in the past, it can also have a negative impact on your credit score. Repossessions stay on your credit report for up to seven years, which can make it difficult to get approved for loans or credit cards.
Bankruptcy
Bankruptcy is a legal process that allows individuals or businesses to eliminate or restructure their debt. While bankruptcy can provide relief from debt, it also has a negative impact on your credit score. Bankruptcy can stay on your credit report for up to six years, which can make it difficult to get approved for loans or credit cards.
County Court Judgements (CCJs)
A County Court Judgement (CCJ) is a legal order that requires you to pay back money you owe. If you’ve had a CCJ in the last six years, it can have a negative impact on your credit score. CCJs stay on your credit report for up to six years, which can make it difficult to get approved for loans or credit cards.
Debt Management Plans or Individual Voluntary Arrangements (IVAs)
Debt management plans and individual voluntary arrangements are agreements between you and your creditors to pay back your debt over a period of time. While they can provide relief from debt, they can also have a negative impact on your credit score. These agreements stay on your credit report for up to six years, which can make it difficult to get approved for loans or credit cards.
Remortgaging with Bad Credit
If you have bad credit, you may be wondering whether you can remortgage. The short answer is yes, it’s possible to remortgage with bad credit. However, it’s not always easy to find a lender who will approve your application, and you may have to pay higher rates than someone with good credit.
Getting approved for a bad credit remortgage is often easier than getting a new mortgage on a different property. This is because you already have an asset in your existing property, which minimises a lender’s risk. However, there are still some things you can do to improve your chances of approval. For example, you can try to improve your credit score by paying down debt or disputing errors on your credit report.
Common Reasons for Remortgaging
- To improve their existing mortgage rate
- Debt consolidation
- Raise capital for a purchase or expense
- Remortgage to release equity
- Relationship breakdown
- Let to buy
Getting Help with a Bad Credit Remortgage
If you’re considering remortgaging for any of these reasons, it’s important to work with a knowledgeable advisor who can help you find the right type of mortgage for your needs. Even if you have bad credit, there may be options available to you, and our experts can guide you through the process from start to finish.
The reasons behind your decision to remortgage can make a difference in terms of your approval chances. By understanding your options and working with one of our professional advisors, you can make an informed decision and find the right remortgage deal for your financial situation.
See how we can help you with your Mortgage in Birmingham
If you’re struggling to qualify for a mortgage due to adverse credit, you’re not alone. Many people face this challenge, but there is hope. We are experts in the adverse credit mortgage market, and we’re here to help you find the best mortgage rates available.
With over 20 years of experience, we have the knowledge and expertise to assist you in identifying the lowest rate mortgage for your specific situation. We work with all of the lenders in this sector of the mortgage market, giving us access to a wide range of options that other lenders may not have.
We understand that every client’s circumstances are unique. That’s why we take a personalised approach with each new enquiry, assessing your needs and recommending the most suitable mortgage product for you.
If you’re ready to explore your mortgage options, we invite you to complete our Mortgage Enquiry Form or contact us. Our friendly and knowledgeable team is standing by to help you navigate the world of adverse credit mortgages and find the right solution for your needs.