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Can I Mortgage With Bad Credit?

As you would probably expect getting a mortgage on bad credit can be difficult. But does it have to spell the end of your dreams to own a home of your own? Not necessarily. In fact, it’s often possible to get a mortgage with a bad credit history, although your options may be limited. In this article we’re going to walk you through some of the key questions on how to get a mortgage with bad credit?

From County court judgments (CCJs) and defaults to a history of missed payments or bankruptcy. There are plenty of financial concerns that can adversely affect your credit score.

A credit score is just one of the indicators that lenders will look at to build a picture of how likely you are to pay back your loan. Unfortunately, the poorer your credit score, the more likely a lender is to decline the mortgage offer. However, this is not the be all and end all of the story.

Lenders will look at other factors too. If you have a stable employment status and income for instance this could place you in a more favourable position. Also, if you have an intended mortgage partner who comes with a glowing credit report then this may help you too.

What is considered bad credit?

Your credit score figure indicates how healthy your financial situation is and takes your financial history into account. It can be accessed for free via the Experian website. If your score is less than 700 that would indicate that you have a bad credit rating.

How to get a mortgage with bad credit

If you have bad credit, you don’t have to suffer in silence. The important thing to do is reach out for help. A bad credit mortgage broker can help offer actionable advice on how to improve your score. They can give you clarity and help you see the wood through the trees.

Specialist bad credit mortgage advisors can also look at other options which could make a mortgage more affordable by offering bad credit rates. They can also have access to bad credit lenders who are more flexible. However, the catch is that many of these lenders charge higher-than-average interest rates and may require a larger deposit. Some of these lenders cater specifically for people who’ve faced difficult life events such as divorce or illness.

According to the bad credit report by Which? you may have more luck getting a mortgage through a building society than a high-street bank if you have a bad credit score.

In conclusion

When it comes to trying to secure a mortgage with a bad credit score it’s all about getting the right advice. The good news is that it is more than possible to secure a mortgage and own your own home with bad credit. You just may have to choose the right advisors and lenders and, if possible, try and improve your score.

At Derngate Wealth Management, we’ve helped plenty of home-seekers secure a mortgage with bad credit. Speak to one of our advisors today to arrange your free, initial consultation.

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