POOR CREDIT HISTORY
YOU CAN GET A MORTGAGE IF YOU HAVE A POOR CREDIT HISTORY
There is a common misconception in the housing market that if you have a poor credit history, you may not be able to get a mortgage. This isn’t necessarily true. Clearly, if you’re not one to ever pay your bills then a mortgage lender will take that into account, but a few past mistakes are not the end of the line for your application.
Whilst some high street lenders may say “No” if you’ve slipped up in the past, advisors like us have access to the whole of the mortgage market, including many lenders who cannot only help, but who actually specialise in poor history and low credit scores.
We find a lot of our clients think that one blip on their credit file is all they need to be declined a mortgage but if that’s your situation then don’t worry, there are more routes to getting a mortgage.
Lots of house hunters believe they have to wait for six years for a bad debt to drop off their credit history before they can apply for a mortgage, but this isn’t always the case.
Had a blip in your payments in the past? There’s hope for you yet…
A ‘blip’ in your history could have been:
- Late mortgage payments.
- Late unsecured debt payments on a credit card, loan, or car lease.
- Or a default on payment or a CCJ (County Court Judgement).
- Even Bankruptcy, IVA or Debt Management Plan
In any of the above scenarios there will be lenders who will help you. Of course, it all depends on how recent the problems were, but some lenders will consider clients who have defaults or CCJ’s as recent as 3 months ago. Make sure you ask and find the right lender to ask.
There is some truth in this as the more historic the blip, the lower the rate and deposit you’ll need.
But there are also some lenders who don’t mind if the default or CCJ is still outstanding or paid. The more mainstream lenders, on the other hand, are less likely to accept your application if they’re unpaid.
Had a Bankruptcy or IVA (Individual Voluntary Arrangement)? The time will affect these differently too. Some mortgage lenders will look for six years since the discharge and some will lend to you even if you were discharged only three or possibly two years ago.
There are a lot of specialist ‘intermediary only’ lenders that you won’t be able to speak to as you can’t go direct.
Help is at hand…
‘Blips’ are part of life and although you should always aim to keep up with your payments and avoid the risks associated with not paying them, some lenders do understand that you have had the odd slip up.
If you manage your credit history well and choose the right lenders and products there’s often a way to get through it and get that mortgage agreed.
Help is at hand…
‘Blips’ are part of life and although you should always aim to keep up with your payments and avoid the risks associated with not paying them, some lenders do understand that you have have had the odd slip up.
If you manage your credit history well and choose the right lenders and products there’s often a way to get through it and get that mortgage agreed.
At Gough Mortgage + Protection we have the knowledge and the experience to know which lender is likely to accept your individual scenario, whether its previous defaults, CCJ’s, debt management plans or even bankruptcies.
If you’ve been nervous about applying for a mortgage in the past, then please do give us a call.
We promise we won't charge you a fee unless a lender fully agrees your application, so if we’re unable to help you, we won’t charge.
At Gough Mortgage + Protection we have the knowledge and the experience to know which lender is likely to accept your individual scenario, whether its previous defaults, CCJ’s, debt management plans or even bankruptcies.
If you’ve been nervous about applying for a mortgage in the past, then please do give us a call.
We promise we won't charge you a fee unless a lender fully agrees your application, so if we’re unable to help you, we won’t charge.
At Gough Mortgage + Protection we:
- Find the most suitable Mortgage for you.
- Explain how much you can borrow and show you the monthly repayments.
- Explain all of the additional costs of buying a property you may not have thought about. These can include things such as legal costs, surveys, and stamp duty.
- Help to reduce some of the stress by keeping you fully informed throughout the process.
- Submit the application on your behalf and deal directly with the lender.
- We believe in our expert knowledge and the quality of our service, so we guarantee that if we’re unable to secure you a Mortgage Offer, you won’t pay us a penny.
Contact us today to see how we can help you to buy your first home.
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