Can I get a Mortgage with Bad Credit

Are you looking for a mortgage but worried about your bad credit history? Our guide will help you understand what to do and how your can maximise your chances of getting a mortgage.

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Are you looking for a mortgage but worried about your bad credit history? Our guide will help you understand what to do and how your can maximise your chances of getting a mortgage.

About Mansfield Mortgages

Credit Bad Credit Mortgage Bad Credit Mortgage lender Credit history

Can I get a Mortgage with Bad Credit? 
If you are hoping to buy a property or looking for a remortgage for an existing property but you have 
been in financial trouble in the past, you may be wondering “can I get a mortgage if I have a bad 
credit record?”. 
The good news is that it is not impossible to get a mortgage with bad credit, but it can be harder. 
Lenders will look at your credit history to determine whether they think you will be able to make the 
regular monthly mortgage repayments. But it’s not the only factor that they will take into account 
and lenders have different criteria and make different decisions.  There isn’t always a product call a 
bad credit mortgage but there are lenders who are more equipped and used to lending to people 
with a poor or low credit history. 
There are fewer lenders for first-time buyers with bad credit or a low credit rating, especially if your 
bad credit is severe or recent but you may still be able to get a mortgage, a good mortgage broker 
will be able to advise on how you should proceed. 
Your credit rating is one of the first things that a lender will check when you apply for a mortgage. A 
poor credit score can be an instant warning flag which can prevent or hold up your application. A 
lender will want to see more evidence of your finances so that they can ensure that you will be able 
to make the monthly repayments. 
What is bad credit? 
There are many different factors that can determine whether you have had bad credit or not. For 
some lenders even a one-off late payment could impact on your credit rating, for others it is more 
serious problems such as regularly defaulting on payments, county court judgements (CCJ) or being 
declared bankrupt. A high amount of debt can also affect your ability to apply for a mortgage. 
What is a bad credit mortgage? 
A bad credit mortgage is aimed at borrowers with a poor credit history and rating. Mortgage 
providers want to ensure that they will get back the money they lend and so they will minimise the 
risk by offering a lower amount of money, higher interest rates and less favourable deals. 
Lenders will evaluate your individual personal circumstances and review on a case-by-case basis. 
What to do 
If you are concerned about your credit history and how it might affect your ability to get a mortgage, 
we would advise that you get in touch with an independent mortgage broker who can advise on 
which lenders may look more favourably on your circumstances. 
Always be honest with mortgage lenders, they will conduct thorough searches and trying to hide 
adverse credit will look bad. Having an explanation in why you got into financial trouble and what 
you have done to remedy the issue will then help your application. 
What are the advantages of a bad credit mortgage? 
A bad credit mortgage can help you get onto the property ladder and by paying your mortgage on 
time each month you will have the chance to improve your credit rating. 
What are the disadvantages of a bad credit mortgage? 
Most lenders see this type of mortgage as high risk so they will require a higher deposit and you 
won’t be allowed to borrow as much as you would if you had a good credit history. Interest rates will 
be higher too when compared to those available. 
How to increase your changes of getting a mortgage if you have bad credit 
You credit score is built up over a period of time and negative items can stay on your report for 
around six years. Improving your credit score is not a guarantee that you will get a mortgage, but it 
can increase your chances. There are a few things you can do to improve your credit screen in the 
short term:- 
1) Register to vote, ensure you are on the electoral role 
2) Meet all bill payment deadlines 
3) Pay off outstanding debt where possible before trying to get a mortgage 
4) Look for an amend any mistakes on your credit report 
5) Check for fraud as your score may have been lowered unfairly 
6) Cancel any unused credit cards or bank accounts 
7) Remove any links to ex-partners or old housemates with poor credit scores 
Avoid getting rejected for a bad credit mortgage 
Every time you apply for a mortgage or loan and get declined a record of this is noted on your credit 
report for future lenders to see. Recent and/or frequent rejections can work against you when 
applying for a mortgage as lenders are likely to questions why you have been refused. A broker will 
be able to advise on your personal circumstances and select lenders who will look more favourable 
on your application.