Bad Credit Mortgages

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Bad Credit Mortgages

What is bad credit?

Bad credit can range from having late payments on credit commitments, having defaulted on previous credit commitments to having county court judgements through to bankruptcy.

Can you get a mortgage with bad credit?

The majority of the high street lenders prefer borrowers to have a good credit history. They can obtain the information about your payment history from credit reference agencies and like to see that you have maintained on time payments and haven’t fallen behind on your financial responsibilities.

High street lenders generally have the best rates for customers with a strong credit score. Some will allow you little blemishes, but generally they prefer you to have a clean credit record. There are also more specialist lenders, who allow you to have certain elements of bad credit, but their rates are a little bit higher.

There are lenders that will accept applicants with county court judgements, defaults and even debt management plans. It’s just a case of finding the right lender that will accept your application, at a competitive rate.

How do I know if I have bad credit?

Something as small as a mobile phone bill can leave you with poor credit history, perhaps, if you forget to pay the final bill or similar circumstances. Sometimes people don’t realise that they’ve had blemishes on their credit file. It’s important to check your credit score with a credit reference agency directly, before you apply for a mortgage. You can do this online with any of the major credit reference agencies.

How can I improve my credit score?

If you have a low credit score, it’s likely to be because you’ve had late payments or defaulted on an account. The mark on your file for this type of issue generally stays with you for at least six years.

If you have had bad credit in the past, try to run your accounts in an orderly fashion, because the longer ago the issues occurred, the more chance you have of being considered for a mortgage. A lot of people may not realise that every loan or credit card payment is documented on their credit report, so it’s important to bear that in mind if you’re planning to get a mortgage.

Can you get a mortgage with a 500 credit score?

There are three major credit reference agencies, Experian, Equifax and TransUnion, all of whom use different scoring systems, so the scores only mean anything to the actual credit reference agencies. A score of 500 may be good with one and bad with another agency.

Mortgage Lenders have their own internal credit scoring system. They will use these credit reference agencies to get all the information that they need, but use their own internal credit scoring system. The credit score in terms of the actual figure, is therefore not a good indicator.

Speak To An Expert

We’ll take care of all the heavy work. From finding the right mortgage product and providing you with a detailed quote, to submitting the mortgage application on your behalf and guiding you right through to the completion of your mortgage.

Can I get a mortgage with a CCJ?

It is possible, but will depend on the lender. Those lenders that will accept the CCJ (county court judgement), will prefer you to have it paid off, known as what’s called a satisfied CCJ. A CCJ sits on your record for six years, but it will show satisfied or unsatisfied. There are one or two high street lenders that may allow a satisfied CCJ, so it will be beneficial if you were able to satisfy it.

Is the process any different for First Time Buyers that have bad credit?

There are lenders that will accept poor credit clients whether they are First Time Buyers or not, so the process isn’t any different. Now, if you are a first time buyer and you have had credit issues in the past, our Mortgage Brokers will usually refer you to an online company called ‘Check My File’ because they’ll provide you with a report from all three credit reference agencies rather than going to all three separately. They will provide you with a comprehensive report of your credit history.

Our Mortgage Brokers will be able to go through that information and research bad credit mortgage lenders that will accept your level of bad credit. We can match the client with a lender, to ensure that they will achieve a successful application.

Is the process any different if I Remortgage with bad credit?

If you’ve got a mortgage already and you’re looking to remortgage, it’s really a simple process, so long as you haven’t had any late repayments on your mortgage with the actual lender. They will usually allow you to take a new product with them once your and current ones expire, whether you have bad credit or not.

If you want to borrow additional funds, then your lender will want to credit check you and you may have an issue. In this case, a Mortgage Broker like ourselves can find a lender that will accept you.

How can a Mortgage Broker help with bad credit mortgages?

Mortgage Brokers, like ourselves, here at Mortgage Broker Services, will look at the level of bad credit you have and match it to the right lender. If we’re unable to find a lender who will lend to you at the current time we will explain exactly what you need to do and ask you to come back at a time when we believe we will be more likely to be able to help you find a lender.

If you have any questions on anything we’ve discussed, contact the office on 0333 772 1551 or complete our 30 second contact form and one of our advisers will be in touch.


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Fill in your details below and one of our mortgage experts will contact you to let you know which mortgages you qualify for and help you choose the right deal

or call us: 0333 772 1551