In recent years, rising property prices and interest rates have made it more difficult to get onto the property ladder. Indeed, according to Uswitch, the
In recent years, rising property prices and interest rates have made it more difficult to get onto the property ladder. Indeed, according to Uswitch, the
Bad credit mortgages are offered by specialist lenders to provide a way of getting onto the property ladder despite having a lower credit score.
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?
With the right mortgage advice, like the guidance provided by our knowledgeable team, you can discover mortgage lenders and deals that are appropriate for you.
The CRA is often the best place when getting a mortgage with bad credit. It can offer guidance based on your specific credit history and help you to build a better credit score.
Adding a guarantor could help you to obtain a better mortgage deal. It can reassuring lenders that your repayments will be made if you fail to make them yourself.
Find expert guidance, and all the information you need to make informed decisions on your path to homeownership.
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UK Mortgage Centre Limited is an Appointed Representative of Refresh Mortgage Network Limited. Refresh Mortgage Network Limited is authorised and regulated by the Financial Conduct Authority. We are entered on the Financial Services Register under firm number 1019794.
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.
You may be charged a fee for your advice. A typical fee is £495, which would be payable when you receive your mortgage offer. Your dedicated advisor will discuss this further on your free initial phone call.
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