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