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Remortgage with Adverse Credit

Having adverse credit score doesn’t mean you cant remortgage your home. We’ll compare over 90+ lenders with over 20,000 mortgages to find you the best deal. Simply complete our quick enquiry form and we’ll match your circumstances to the perfect broker.

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What type of mortgage do you require?

What is the property value?

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How much are you looking to borrow

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How soon are you looking to buy?

What is your full name?

What is your email address?

What is your mobile number?

What is your postcode?

Please select your address

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What is your title?

What is your full name?

What is your email address?

What is your date of birth?

Are you a UK resident?

What is your marital status?

Do you have any dependents under the age of 18?

What is your mobile number?

What is your postcode?

Please select your address

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What is your employment status?

What type of employment are you in?

How long have you been in this employment?

What is your annual salary?

£

Do you have any other income from this employment?

— Overtime, bonus', allowances etc

Please describe where this income comes from

What type of company do you have?

How many years of accounts do you have?

What type of employment are you in?

How long have you been in this employment?

What is your annual salary?

£

Do you have any other income from this employment?

— Overtime, bonus', allowances etc

Do you have any other income at all?

— Including income from benefits, investments, rental income etc

Please describe where this income as best as you can

{{Input.applicantInput[0].Title}} {{Input.applicantInput[0].firstName}} {{Input.applicantInput[0].lastName}}'s Credit History

Do you have any adverse credit?

— Things like late payments, CCJ's, arrears, IVAs, bankruptcys etc

How many issues have you had?

What type of issues have you had?

—You can select more than one

Have you been declined by any mortgage lenders recently?

Have you ever taken out a Payday loan?

Are there any notes you'd like to add?

—The more details you provide, the more specialist help we'll be able to provide

Great News.
You’re Mortgageable!

Your application has been accepted, once an experienced advisor has accessed your file we will be in-touch. Keep an eye out for a text message telling you who will be calling you. Good luck!

By clicking 'Submit', you agree to our privacy policy and understand that we will match your circumstances with an approved Mortgage Broker who will make contact with you through the information above.
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Lisa Nicholls

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Having adverse credit rating doesn’t mean you can’t get a mortgage and you’ll never remortgage your property. You may even be afraid to approach different lenders for a mortgage in case you get turned down and your credit rating taking another potential hit.

Furthermore, it can be difficult to know if your credit rating is bad, as different banks and lenders will have varied opinions on credit based on your history.

If you’re wondering how to get a mortgage with a bad credit rating, read on to find out everything you need to know about bad credit mortgages.


Is It Possible to Get a Mortgage with a Bad Credit History?

The short answer is yes. If your credit does fall into this ‘bad’ estimation, that doesn’t mean that you can’t get a mortgage. It may be more difficult than if your credit was better, but there are specialist lenders out there that offer bad credit mortgages, giving you a chance to get on the property ladder.

Rather than look at the blemishes on your credit history, these lenders will look at the duration and severity of the issues, as well as how close you are to meet their eligibility requirements.

Specialist bad credit mortgage lenders are more flexible with their lending, compared to their mainstream counterparts.  With specialist lenders, your bad credit history or poor credit score may not necessarily stand in your way of getting a mortgage, providing mortgages to those with:

  • Missed mortgage payments or other late payments.
  • A poor credit score or no credit history.
  • Defaults in payments
  • Bankruptcy or repossessions.
  • CCJs and IVAs
  • Debt management schemes or payday loans.
  • Multiple credit issues.

In terms of severity, bankruptcy and repossession are considered the most serious, whilst the likes of missed mobile phone payments are on the other end of the scale.


What Issues are Taken into Consideration for a Bad Credit Mortgage?

When you have poor credit or no credit history, other factors will be taken into consideration to determine whether you can actually afford a mortgage and the monthly repayments. Firstly, your employment status and income will need to be disclosed to your lender.

The lump sum you have available for a deposit is also of great interest to a specialist bad credit mortgage agency. For a conventional mortgage on a residential property, the usual sum required for a deposit is at least 5% of the property’s value, but it may be more depending on circumstances. For a buy to let home the deposit can be as high as 25%. If you have bad credit, the ability to put down a larger deposit than the traditional mortgage lenders expect may lower your perceived risk of not being able to pay off the loan.

Regular outgoings will be also taken into account – such as dependent children, other loans, credit cards etc. – and the proportion of your income they take up. This will help to determine how much money you will be able to borrow based on the monthly payments you can comfortably make.

Also, the type of property is of interest, particularly those with specialist features and a non-standard construction. If the home you’re interested in has the likes of a timber frame, thatched or grass roof, etc. you may need to go through a specialist lender.


How do I Get a Bad Credit Mortgage?

It is important to note that specialist lenders will put conditions in place that are different from mainstream lenders. You are likely to need a larger deposit than those required for a conventional mortgage, with specialist lenders having stringent caps on the amount of money they are willing to lend those with bad credit. The majority of bad credit mortgage lenders may loan 60% of the property’s value, however a few may be willing to lend as much as 90%.

Additionally, you can expect a poor credit mortgage to have interest rates that are significantly higher than those from high street banks. However, there will also be potential marked effects on your credit rating if you keep up with the payments. Over time your credit rating may improve, which could give you the option to remortgage with better interest rates in the future.


Preparing for your Bad Credit Mortgage Application

It is important to know what your actual credit rating is before applying for a mortgage so contact one of the main credit rating agencies Experian or Equifax for an accurate credit report. It is imperative that the information supplied is current and correct, so double check everything before submitting. There are several online services that will provide you with a credit report for free online, or there are paid online subscription services so you can monitor your credit rating.

Additional documentation that you will require for your mortgage application include the likes of:

  • A current driving license or passport to verify your identity.
  • Bank statements for your current account dating back between 3 to 6 months.
  • Payslips from the last 3 to 6 months or if you are self-employed, your accounts and tax return forms (SA302) for the previous 3 years.
  • Utility bills.
  • Council Tax bill.
  • Insurance policies.
  • Proof of any benefits you receive.
  • Your general living cost, such as travel expenses, childcare, regular outgoings etc.
  • Details of the property you wish to purchase, the estate agent you are buying through, and your solicitor.

Each specialist lender may have different criteria when it comes to what information you require and your income and outgoings. So, before applying, get in touch with our expert team here at Mortgageable to see if there’s anything else needed for your application.

Be sure not to make multiple online or mainstream bank applications as rejections can negatively affect your credit rating further. Having several ‘hard’ searches on your credit file can adversely affect your chances of getting a mortgage when you find the right lender.


What About My Income?

Your income will usually determine the cap on the amount you are eligible to borrow. Most mortgage providers will allow borrowing up to four times your annual salary, although some may offer up to 5 or 6 times your salary if the circumstances are right. Affordability is key and lenders us affordability calculators to assess lending levels.

If your credit is bad, but you are a high earner you will still be considered a high risk for a mortgage that is a high multiple of your wage. It may be possible through an expert mortgage broker, who can find you a flexible lender that specialises in bad credit mortgages to high earners.

Start your search for a mortgage by getting some advice from a whole-of-market mortgage broker and determine what your best options are depending on your income and how much you would like to borrow.

If you have a bad credit rating and a low income it may be a little harder to secure a mortgage as they are definitely not common, falling into the niche category of lenders. Still, this doesn’t mean you won’t be able to get a mortgage – there may be a lender out there that specialises in lending to those with poor credit and a low income.

There are other options available if you fall into both categories, such as supplementing your low income with benefits, Shared Ownership schemes, and guarantor mortgages. Get in touch with us today to talk through your options with you and advise you on the best route to go down.


Main Takeaways

  • Yes, those with a poor credit history can still get a mortgage.
  • Raise as large as a deposit as you can as this will improve your chances of getting a mortgage.
  • Check your credit reports and improve your credit rating as much as possible before applying.
  • Find a lender that specialises in bad credit mortgages – that’s where Mortgageable come in!
  • Speak to our export mortgage advisors today to discuss through your options.

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Gareth & Amelia Melling, Wigan

We would just like to thank you for all the hard work and time you have spend over the last few months arranging us a new mortgage deal. We will save so much. We are very thankful for securing us our first mortgage and enabling us to buy our lovely family home we will be forever grateful. Thank you for all the phone calls, emails and answering any questions I had when re mortgaging, you made the process quick and easy.

Russ and Marianne Green, St Helens

Thanks, the move went well and we are now surrounded by boxes but excited about starting the next chapter of our life in the new house. Marianne and I would like to say a huge thanks to you for your help in arranging this mortgage and will be recommending you to all our friends. It really has been a lot easier having professionals like yourselves managing the process.

Victoria

Just want to say a massive thank you for helping us buy our dream home, you made the whole mortgage application stress free! We got a brilliant deal, which was fully explained and we were kept informed throughout every step of the mortgage application journey. Whilst the mortgage application was being approved, they also sorted our insurance policies and completed a re-mortgage on another property.. absolutely brilliant service!

Rachel H, Newton-le-Willows

Your team have gone above and beyond to help me and my partner get our first house. I am so impressed by how helpful and understanding they have been throughout the process. I spoke with you on the off chance during my search for a mortgage and less than a week later we had an offer accepted on a house. Me and my partner were pretty clueless when it came to the mortgage process but thanks to the team we have now completed on our first perfect home.

Brad and Becky, Ashton

Just thought I’d drop you a quick email to say thank you for your wonderful service and helping us out massively in purchasing our first home together in Ashton. We couldn’t have done it without you and you explained everything so well and made sure we had a good understanding. Thank you again! And if we ever need more advice expect to hear from us!!