Buying a house for the first time can seem daunting, especially if you’re unsure what you’re letting yourself in for. After all, there’s a lot
Buying a house for the first time can seem daunting, especially if you’re unsure what you’re letting yourself in for. After all, there’s a lot
I want to
Wondering how getting a mortgage with bad credit works?
Every lender conducts a credit check or search to ensure a potential borrower meets the criteria for a mortgage product they’re applying for. Without one, a lender has no way of knowing if an individual qualifies.
A poor credit score can indicate to mortgage lenders that you’ll struggle to repay the loan as your score will decrease following an increase in debt, bankruptcy, missed payments, or repeated credit searches.
As a result, bad credit can affect a mortgage application as you may be denied the loan amount you need to buy your chosen property. Alternatively, you may be presented with mortgage deals that have higher interest rates, or be asked to put down a bigger deposit.
On the other hand, if a borrower has bad credit, a lender can use a credit check to help identify an
appropriate product because they’ll have a better understanding of the risk involved.
However, it’s important to understand that a successful application isn’t solely determined by your credit score; lenders will take into account other aspects of your application as well as your individual circumstances.
What are the benefits?
What are the risks?
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UK Mortgage Centre is a trading style of Refresh Mortgage Network Limited. Refresh Mortgage Network Limited is authorised and regulated by the Financial Conduct Authority. FRN – 826982. Registered in England & Wales: 11614569. As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments. The Financial Conduct Authority does not regulate some forms of buy-to-let mortgages. The Financial Conduct Authority does not regulate will writing and taxation and trust advice.
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The guidance and/or advice obtained within our website is subject to the UK Regulatory Regime and is therefore primarily targeted at customers in the UK
