You may have bad credit. Many do from Late Payment, CCJ's Defaults, IVA's, Debt Management Plans and Bankruptcy.
Not all mortgage brokers are made the same, and they may specialise in other areas. Otherwise only get calls from certain types of borrowers.
You want a bad credit mortgage broker. A broker that has the experience to identify your requirements. Then apply that with mortgage lender criteria knowledge.
We are that broker, a bad credit mortgage broker able to help many borrowers where other brokers have failed.
Some specialist mortgage lenders offer mortgages often to bad credit borrowers. Historically known as subprime mortgage lenders, they will take a view.
Unfortunately the due to higher risk, they charge higher rates and fees. It derives from the cost for them obtaining the finance and covering defaults.
These are what we call "last resort" mortgage lenders. We prefer to find a place given your circumstances with more mainstream lenders. Though if it meets your needs and affordability, we have options available for you.
Similarly, they are looking to ensure your bad credit is historical, rectified and unlikely to reoccur.
It is often possible to obtain a mortgage with a high street lender even with bad credit. They mainly want prime borrowers lowering the risk of defaults. Except some take a view on your circumstances.
If your adverse credit was less severe (not bankruptcy/repossession) and you have a justifiable reason. Many will take a view, especially if your bad credit is historical and even more so at low Loan to Value (LTV).
Historical Adverse can often be sidelined if you now have a long history of good credit. After a particular time, these bad credit events even drop off your credit file.
You can not hide your adverse credit and will want a specialist mortgage adviser. An adviser can identify the best route for you. That can be high street lenders with more favourable rates.
Remortgaging, when you have adverse credit, can be more straightforward compared to a purchase. Though only if you did not miss or default on a mortgage payment.
Your current lender may offer a product switch, allowing you to escape the lenders Standard Variable Rate (SVR). Not all lenders give such allowances.
Other lenders can view you as a good mortgage borrower even though, for example, you missed a mobile phone payment.
There are more options available for like-for-like remortgaging. Compared to if you want to release monies. Though there are 2nd charge lenders available too for that.
Not all mortgage lenders offer finance for people with bad credit. Those that do want to be assured that it is historic and take a risk on you that it won't happen again.
Mainstream lenders offer minor allowances. Such as missed payments on mobile phone or utilities. Thankfully there are many none high street lenders offering adverse mortgages.
Each mortgage lender has different criteria. Talking to a specialist mortgage adviser is essential. To identify those mortgage lenders that suit your circumstances.
If you are unable to obtain a mortgage due to bad credit, a guarantor may help. A family member (or even a friend with certain lenders) can be your guarantor.
In circumstances where a lender can view you as high risk a person backing you can help lenders feel secure. They sign to say they will pay the mortgage and be liable for the debt if you don't pay.
Not all mortgage lenders offer Guarantor Mortgages. Those that do require your guarantor to own property, have a high enough income and a good credit record.
A payday loan on your credit file suggests to a lender a time when you needed money quick. It hints to them at budget issues and raises questions about affordability.
Many mortgage lenders decline applications where you have had a payday loan. There are exceptions!
If you have a 25% deposit (or equity), then there are ten's of lenders available. Otherwise, it often comes down to how recent your payday loan was taken out. The further in time it was, the more lending options are available.
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