Even though you have a poor credit rating, you might still be able to get onto the property ladder. We’ll show you how you can get a mortgage with a bad credit rating.
Can I still get a mortgage with a bad credit rating?
Fear not! It’s still possible to get a mortgage with a poor credit rating.
If you don’t have the time to hunt down the most suitable deal for you, we do.
In fact, finding bad credit mortgage deals is what we do best
Unlike the high street banks, we have access to more than 80 mortgage lenders, which means that more often than not, we can find the one that’s right for your circumstances. We even work with specialist bad credit mortgage lenders who are happy to consider applicants with a bad credit rating on a case-by-case basis.
All we need are some details from you, and we promise to do all the legwork to help find your most suitable mortgage match, even if you have a poor credit history.
So, what is bad credit?
Have you ever taken out a credit card or loan? Or maybe you let that chatty shop assistant talk you into applying for a store card two years ago (and you’ve probably never used it since). If so, you have a credit rating.
If you’ve kept to the repayment schedule and paid off your debts on time each month, chances are your credit score is pretty good. However, if you’ve missed the odd payment, or paid late, you may have a bad credit rating. This is because to lenders, it looks like you’re struggling to repay your debts.
Don’t worry just yet! The good news is that different banks and lenders all have their own criteria when assessing your credit score, meaning you may still be able to get a mortgage with a bad credit rating. However, a less-than-perfect credit history can make it more difficult to borrow money in the long run.
What if I have NO credit history?
Plenty of people believe that it’s best to steer clear of credit at all costs. It’s easy to see why.
But you might be surprised to learn that in many cases, having no credit history can be almost as damaging as having a poor credit history!
After all, how will lenders know that you can be trusted to pay them back? Having no evidence of regular repayments on your credit report will normally make lenders think twice.
How can I improve my credit rating?
Ready to make a change? If you want to improve your chances of getting a mortgage with a bad credit rating, here are some of the things you can do to take your credit score from bad to brilliant:
- Make sure that you’re registered on the electoral role. You’ll find it very hard to get credit otherwise.
- Pay your bills on time. Even just paying your broadband contract on time each month shows lenders than you can manage your finances.
- Check for any minor errors in your credit report. Any incorrect information can have a negative impact, so make sure that everything is up-to-date.
- Ensure that you aren’t linked to an ex-spouse via an old joint account that you’ve forgotten about. If their credit rating is bad, they’ll drag you down with them too!
- Get a credit card. Sounds counter-productive, right? But it isn’t. Even if you’re only accepted for a card that offers a low credit limit and a high interest rate, lenders will learn to trust you if you pay it off in full each month.
- Settle down! If you move home regularly, it can make lenders feel uneasy. If possible, try to live at the same address for a considerable period of time.
- And finally… stop checking your credit rating! Running credit checks too often is a big old red flag for many lenders. Nobody likes a red flag.
How long will it take to improve my credit rating?
Your credit rating is built up very slowly, meaning that any blemishes in your credit history could remain on your file for up to six years. After that time, missed payments are removed from your file. This means that there’s always time to do something about your bad credit score!
Some unpaid bills will also carry more weight than others with most lenders. For example, missing your credit card payment for three months on the trot last year is much more serious than one missed phone bill payment from three years ago.
Contact us today to discuss your bad credit mortgage options
You need a mortgage for bad credit. We’re the mortgage experts.
No matter what your circumstances are, one of our friendly advisors would love to have a chat with you.
Call us today on 0800 0773 889 or contact us.