Can we help you to get a mortgage even with bad or adverse credit?
We have seen more positive changes in the mortgage market in 2019 since the market peaked in 2007 prior to the recession in 2008, which has been a very pleasant change from some of the very negative lending criteria we have had to endure in recent times.
What we are seeing in today’s mortgage market is real competition with long established lenders wishing to retain their market share, with the new lenders coming to the market at the current rate of around one a month.
With the new level of lenders and competition in the mortgage market the lending criteria in the Bad and Poor Credit has relaxed to a degree that from this month one of the principal lenders in the adverse credit market has brought a new 95% LTV product to the market which will accept a new level of historical bad credit.
This is excellent news for potential buyers coming to the market where until quite recently the minimum deposit that lenders required for a product accepting Bad Credit was 15%. Two of our lenders released products earlier this year at 90% LTV and now one at 95% LTV.
What all clients should do before looking at property is to access their credit file and see if there are any area’s where they may have a problem and get an experienced person to view the file and advise them where they stand in today’s mortgage market place.
It is an excellent time to purchase with the property market being a little flat with the Brexit issues in the background, and lenders wanting to do business with a new flexible approach to lending criteria and underwriting.
Do not miss this great opportunity to get on the property ladder with the new schemes designed to help you from ;
Shared Ownership, Right to Buy, Help to Buy Equity Loan, the Mortgage Guarantee scheme, starter Homes, Right to Acquire
We are here to help and guide you through the process of arranging a mortgage and buying the property, call us now to see how we may help you achieve your goals on the most competitive terms.
Q1. I am a discharged bankrupt; can I still get a mortgage?
Yes – We can help you even when you have just been discharged from bankruptcy. After each anniversary following discharge the terms get better, until the 3rd year when you would be considered on High Street rates.
Q2. I have County Court Judgements (CCJ’s) on my file; will this stop me getting a mortgage?
No – If you have CCJ’s that are more than 24 months old we have lenders that will ignore them, and if they are inside that period we have lenders that will consider an application even if you have a CCJ registered 7 months ago.
Q3. I have credit defaults on my file; will this stop me getting a mortgage?
No – If you have credit defaults that are outside of 24 months we have lenders that will ignore them. Some lenders will ignore defaults registered for communication (mobile phones), some utilities and smaller sized defaults. We have lenders that will consider an application even if the default is registered 7 months ago
Q4. I have had mortgage arrears on my current mortgage, can you still help me?
Yes – Ideally historical mortgage arrears, with none registered in the last 24 months. However, on a low loan to value (generally a maximum of 75%) we have lenders who will consider an application as long as there have been no missed/late payments within the last 6 months. Please be aware that we would need to see your credit file to see what the maximum status showed at any given time.
Q5. I have late/missed payments on credit cards and/or unsecured loans; can I still get a mortgage?
Yes – late or missed payments on unsecured credit are considered by many lenders, but we do need to see the credit file to check on the status of those late or missed payments.
Q6. I have been I a Debt Relief Order; can you help me get a mortgage?
Yes – If you have a discharged Debt Relief order we can help you. After each anniversary following discharge the terms get better, until the 3rd year when you would be considered on High Street rates.
Discharged 1 year 70% LTV
Discharged 2 years 75% LTV
Discharged 3 years 75% to 90% LTV ( 95% LTV in Wales only ) on High Street Lending Terms
Discharged 4 years 95% LTV on High Street Lending Terms
Q7. I’ve had Pay Day loans, can I get a mortgage?
Yes – Even though Pay Day loans are not good news for clients looking for a mortgage, as they are viewed as bad money management, some lenders will consider a mortgage as long as there have been none in the last 12 months. There are lenders who will consider no Pay Day Loans within the last six months depending upon the amount of deposit that you have, a low loan to value is seen as a lower risk to the lender.
Q8. I am currently in an Individual Voluntary Arrangement (IVA) can I still get a mortgage?
Yes – As long as the IVA has been registered at least 12 months and has been satisfactorily conducted we have lenders who will consider this on a low loan to value, normally to a maximum of 65%
Q9. I am in a Debt Management Plan (DMP) – can you help me get a mortgage?
Yes – As long as the plan has been active for at least 12 months and conducted satisfactorily. You can continue with the plan as long as the monthly payment fits on affordability. If the plan was concluded over 3 years ago we have lenders who will consider this on High Street terms.
Q10. I’m self employed but have only been trading for 12 months, can I get a mortgage?
Yes – subject to affordability based on your first years’ accounting information.
Q11. My credit score is really low, can I get a mortgage?
Yes – Many lenders no longer credit score and will lend based on manual underwriting rather than a computer based decision.
Q12. Can you tell me how much can I borrow on a mortgage?
Yes – Lenders currently work on affordability calculations which take into account your lifestyle costs so by completing a budget planner with us we can guide you on the amount of mortgage that may be available to you.
Q13. Can I rent out my existing residential property, that I have a mortgage on, and raise another mortgage to buy a property for me to live in?
Yes – You can either seek consent to let from your current lender or remortgage the existing property onto a Buy to Let mortgage.
Q14. I want to purchase my Council house at a discounted purchase price using the Council Right to Buy scheme. I have bad credit, can I get a mortgage?
Yes – We have lenders who are willing to consider this, some would not require you to put a deposit in yourself, however this depends upon when, and what bad credit is registered.
Q15. I want to buy a house with help from the Government Help to Buy scheme but have bad credit; can you help me get a mortgage?
Yes – We have a number of lenders who can help, even if you have bad credit registered on your credit file. If you are wondering can i get a mortgage on a low income the answer is yes.
Q16. I want to buy a house with help from the Forces Help to Buy scheme but have bad credit; can you help me get a mortgage?
Yes – We have a number of lenders who can help, even if you have bad credit registered on your credit file.
Q17. I am a first time buyer; can I purchase a Buy to Let property?
Yes – However these are generally based on your earned income/affordability rather than anticipated rental income and the maximum loan to value is normally 75%
Q18. I’m retired and want an interest only mortgage, can you help me?
Yes – There are new products being launched by many lenders on a regular basis, therefore please contact us on 03452 605506 to discuss these with you, for your own personal circumstances and needs.
Q19. Can I improve my credit score?
Yes – Your credit profile can be improved by doing the following:
- Appearing on the electoral roll.
- Making sure that you never use more than 50% of your available credit limits.
- Ensuring that you make payments on time for all credit commitments you have including utilities
- Budgeting your finances and not living beyond your means
Q20. I’m considering applying for a mortgage, should I get a copy of my credit file?
Yes – You should always obtain a copy of your credit file prior to considering a mortgage so that we can see how bad credit mortgage lenders may view you. You can obtain a copy of your credit file for a one off payment of £2 from:
There are a number of other providers who offer a free service but the level of information provided is not as in depth.
Bad Credit Mortgages
If you have a Bad or Poor credit profile, are a discharged Bankrupt or have been in an IVA or Debt Management and you need a mortgage, you have landed on exactly the right page. Why? Because it is what we specialise in, and we are very good at what we do. We spend a massive amount of our time talking to lenders who are prepared to help, and they want to lend where they can. We have had a number of new lenders come to the market in 2017, all bringing new products and flexible criteria to a fast changing market, where we have need real competition with lenders looking to keep their market share. The current market offers a new and fresh outlook on the specialist mortgage market, which can only be good for prospective clients looking for a mortgage. We are here to help you when other lenders may have said no, call us now on 03452 605506 or 07867 794837
What makes us different?
We are special because we know our market and our lenders trust us because we are totally honest and transparent with them from day one. We are not time wasters. We make no upfront charges, so if we cannot help you we will tell you as soon as possible. Our business model is that we want to see everything from you upfront, your credit file and any information that will have an impact on your application. If we can see very early on what the lender will see when looking at you, we are in the driving seat, and we can, if at all possible take you to the right lender who will say YES on the most competitive terms. With over 50 years of experience in Financial Services we have the knowledge and the training to be able to help you, when others may say ‘NO’.
Mortgages for Discharged Bankrupts
For most clients the future must appear to be a little bleak following discharge from Bankruptcy, when many of the products in financial services would be out of reach. We are very proud and pleased to advise you that ONE MONTH after you have been discharged from bankruptcy you could be eligible for a mortgage. We can also make you smile, by advising you that each year thereafter following discharge, the terms and conditions of the mortgage products that you may be able to access, will improve, with High street terms being available three years after discharge.
Thank goodness some of our lenders still make common-sense decisions based on a manual underwrite. Yes, you may be asked to find a bigger deposit than some other clients, but three years after discharge, the terms and conditions you will receive are the same as any other client. How much better does it get? Michael J Alexander.
Mortgages with Adverse Credit
A great many clients are still being turned down by our High Street lenders for what in most cases turns out to be historical minor adverse credit, which in 99% of cases will mean that they will fail the credit score.However, do not despair, all is not lost. There are lenders out there who do not base their decision on how many points you score. They will credit check, as every lender does, but the decision to lend or not is made by a human being, yes that is right, a person (an Underwriter) will decide, not the computer. If you are in any doubt about your current credit status then you should obtain a copy of your credit file from one of the main credit agencies, Experian, Equifax, or Call Credit which you can now access for a one off payment of £2.
When we know exactly what Bad credit you have registered against you, when it was registered, the amounts involved, and if it has been satisfied, we can then give you an accurate assessment of your mortgage potential, without having to carry out a credit check, which will have a very negative impact on your credit score. We have lenders who will accept Bad and Adverse Credit, they may need a slightly larger deposit, 15-25%, and they may charge a bit more than some of the more recognised lenders, but they are there to help you and they want to lend, unlike the majority of the High Street lenders who are just cherry picking and trying to maximise their profitability on the business they write.
We have built up, over many years, a unique understanding of the Bad Credit market and the lenders who will help us, with clients who may have had an historical credit problem that is now in the past, and the clients have tried hard to rebuild their credibility. So do not give up if you have been unlucky and have been turned down by a mortgage lender, talk to us. We will explain in plain English what we can do for you, and if we place your mortgage, our key facts illustration ( KFI ) will set out in very clear terms all of the costs of arranging the mortgage and the actual repayments based on the chosen product.
There are various circumstances which people may find themselves in when applying for a mortgage. Some of these include:
- Mortgages for Self Employed
- First Time Buyer Mortgage
- Agency Worker Mortgage
- Mortgages for Discharged Bankrupt
- Refused a Mortgage Elsewhere
We can help you if you are in any variety of situations, the most frequent being a declined decision elsewhere. If you have suffered CCJ’s, defaults, late payments, IVA’s or other credit problems then why not talk to us.
Bad Credit Mortgage News
May 2016 Bad Credit Mortgage News
Secured Loans or Re-Mortgage?
What are the Factors that may have a negative impact on my credit score??
- Having a County Court Judgement (CCJ) registered against you.
- Having a Credit Default on your file
- Using a high percentage of your available credit limit on any credit facility (credit cards, mail order, overdraft)
- Using short term loan facilities (Pay Day Style Loans)
- Late or missed payments on any credit facility
- Not being on the electoral roll at your current address
- Not being in permanent employment for a minimum period of at least 6 months or being self-employed for at least 12 months.
- Previous Bankruptcy
- Being in a current, or having a satisfied, IVA
- Either being in or recently out of a Debt Management Plan
- Previous repossession of a property
- Poor management of your financial affairs
- Mortgage arrears
- Your age
What can I do to improve my credit profile??
- Request a copy of your credit file from Experian or Equifax in order that you can see the level of information that the lender will view to help them make their decision.
- Make sure that you are showing on the electoral role at your current address
- If you have any County Court Judgements (CCJ’s) or Defaults registered against you, you need to seek advice on whether paying them off would improve your position, as satisfying them will not remove them from your credit file.
- If you are using more than 50% of any available credit limit, your credit score will automatically fall, and you will need to address this.
- Pay Day Style loans have a massively negative impact on your credibility. Most lenders, depending on the loan to value, will not accept any during the last 12 months.
- If you have been discharged from a Bankruptcy or an IVA, some lenders will consider an application immediately after discharge, but you would be looking at a maximum 65/70% loan to value (ltv) invariably with penal terms. It will not be until you have been discharged for three years that we can offer you High Street terms.
- Some lenders are now more flexible towards clients who are in, or recently discharged, from a Debt Management Plan (DMP) so if you have conducted the plan in a satisfactory manner and have a 10/15% deposit we maybe able to help you.
- If your credit file reveals poor management of your financial affairs, in most cases you should put on hold any plans to purchase a property for at least six months, and spend that time getting your finances in good order.
- Mortgage arrears are not a good sign and in an ideal world there should be none in the last 24 months but depending on the loan to value we can accept a small amount in the last 24 months but maybe 1 in the last 12 but definitely none in the last six months.
- Because all mortgages are now based on affordability, with an assumed retirement age of 70, this may mean that we cannot offer the usual 25-year term, which may affect the amount that you can borrow.
- If you have had a property repossessed in the past, we would normally suggest that you wait at least three years following the repossession before you try to raise a mortgage to purchase again, but this again would depend on whether there was a shortfall following the sale of the property therefore we would need to discuss the implications of this with you.
What We Specialise In
We are here to help clients who would struggle to place a mortgage with a High Street lender because they may have a history of late or missed payments, been in a Debt Management plan, discharged from Bankruptcy or an IVA. All of these events will have a very negative impact on your credit profile, which would result in a decline by most lenders. This is where we at A Mortgage 4 You are here to help you find the right lender who will accept a bad or poor credit profile
In our experience most clients who have had financial problems have had them as a result of an event beyond their control, such as being made redundant, the breakdown of a relationship, loss of a business, a death in the family, and many other circumstances. Some lenders will take a view of an event in your life which was beyond your control. You may have been irresponsible in your younger years, but now have your finances under control, and you are now looking to move forward with your life, having learnt from your previous mistakes. The good news is that there are still lenders out there who are willing to help, and we know who they are and work closely together with them to achieve the most competitive terms possible.
Our expertise is in bad credit mortgages. We spend a great deal of our time monitoring changes in the market place and lenders underwriting. We have seen a number of new lenders coming into the market this year, some of whom specialise in bad credit mortgages. This has brought some real competition to the mortgage market, which is very good news for clients because lenders have had to change their criteria to be more flexible, and make their terms more attractive.
How do you know if you have adverse credit?
If we, or a lender, run a decision or agreement in principle for you, it may have a negative impact on your credit score. Some lenders carry out a hard search when carrying out a decision in principle, which leaves a ‘hard footprint’ that is visible to other organisations who may access your credit file, whilst others just do a ‘soft search’ leaving a soft footprint, which only you can see.
How do I access my credit file?
There are three main credit agencies in the UK which are used by lenders, and all clients are entitled to obtain a statutory copy of their credit file, for a one off payment of £2, apart from Call Credit via Noddle which is currently free for life. The sites are listed below;
What is a bad credit mortgage?
A bad credit mortgage (also known as an adverse credit mortgage or a sub-prime mortgage), is underwritten slightly differently to a standard mortgage application, where the decision to lend or not always based on points scored.With a bad credit mortgage application, some lenders still credit score, but for the most part the actual decision to lend is much more of a manual one, with a credit scoring system to see which product you fit with.
Although from outset the interest rates and mortgage fees maybe marginally higher than for a standard mortgage, over time as payments are made on time, your credit rating will improve until it will be sufficiently repaired to apply for a standard mortgage with success.
Learn more about “What is a Bad Credit Mortgage”
Your credit score can improve by the following:
- Being on the electoral role
- Making sure not to have any late or missed payments on loans, credit cards or secured loans/mortgages.
- Closing any credit accounts that you do not use
- Checking your credit file regularly to make sure all the information is current and resolving any errors. (You will need to contact the relevant lenders)
- Making sure that you do not exceed more than 50% of any credit agreement
- Where possible pay off your credit cards each month
Learn more about what you can do to change your bad credit profile.
Bad credit mortgages for first time buyers:
Bad credit mortgages for first time buyers do exist, and as previously explained, interest rates and fees may be marginally higher, as will deposits, depending on how adverse your credit rating is and the size of the deposit (Loan to value).
If you are a first time buyer, please get in touch with us. We use simple terms so that you thoroughly understand all the options available to you. We have access to lenders who offer bad credit mortgages for first time buyers that you will not find walking through the high street.
Whether you are a first time buyer, looking to move house or to re-mortgage, we will be delighted to assist you. Give one of our friendly team a call today on 03452 605506 to discuss your options.
Types of Bad Credit
What are the issues that will effect any lenders decision to lend.
• Late or missed payments on credit arrangements
• Mortgage arrears
• Defaults on credit arrangements
• Poor conduct of your bank account
• County Court Judgments ( CCJ’S )
• Previous repossession
• Individual voluntary arrangements.( IVA )
• Can you be found on the electoral roll( IVA )
• Debt management.
There are of course other factors that will influence most lenders;
• How long have you been in your current employment
• Is your employment permanent
• Are you on the electoral roll
• Are you servicing your current commitments in a satisfactory manner?
• Your age
• Type of employment
• Will your travelling expenses increase by moving
• Is the property construction going to raise any problems
Your credit history however is the main factor when it comes to Bad Credit mortgages and any adverse credit on your file will remain there for six years paid or not.
What do our lenders do that is different apart from the underwriting, well if they are going to accept what is a higher perceived risk, they will balance this by asking for a higher deposit, normally 20/25 % of the purchase price or valuation and you may find that the interest rate margin is slightly higher.
Each of our lenders who accept mortgage applications with an element of bad/adverse credit will want to know exactly when the problem occurred and when it was satisfied. The only way in which you can answer those questions is to obtain a copy of your statutory credit file from Experian at a cost of £2 payable by credit or debit card. Please log onto www.experian/statutoryfile.co.uk
By letting a competent broker view your file the response that you get will be 100% accurate and not a shot in the dark which could have an adverse effect on your credit score.
The actual interest rate and fees payable by the client will reflect upon the individual circumstances of that enquiry. Please ask for a personalised illustration.
Want to discuss your Bad Credit Mortgage Requirements?
The overall cost for comparison is 5% APR. The actual rate available will depend on your circumstances. Ask for a personalised illustration.