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Bad Credit Mortgages

 
 
 
 

Looking to purchase or remortgage, but have bad credit?

We may have a product that fits your needs.*

  • Wide range of credit profiles accepted.
  • Trusted advisors who take the time to understand your needs.
  • Flexible criteria, so we could help if you've been declined elsewhere.
Enquire now

Or call our friendly experts on 0800 032 4646

Bad Credit Mortgages

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Loans are secured against property - Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
We are a loan broker Authorised and Regulated by the Financial Conduct Authority. We do not offer mortgages from high street lenders, so you should apply there first. If you were rejected, we may be able to help you.
*subject to criteria / conditions.

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What is a bad credit mortgage?

 
 
 
 

Bad credit mortgages are for people with a less than perfect credit background.

Essentially, they give people who have had financial problems in the past an opportunity to get a mortgage product. This means they will be able start their plans, whether that is to buy a house or release money from their existing property by remortgaging.

Having bad credit increases the risk to lenders, as it shows that you may have had financial problems in the past, and therefore could struggle to make repayments.

To reduce these risks, many lenders may charge higher interest rates. In some cases, often with high street lenders, they may not lend to you at all.

We believe that everyone should be able to get the finance they need, regardless of their past. So, we work closely with a range of specialist lenders to offer purchase and remortgage solutions to people who have been declined by the high street.

credit cards bad credit mortgages

What can cause bad credit?

 
 
 
 

There are a number of different factors which can cause a bad, poor or adverse credit background. It is important to be aware of each type to avoid them in the future.

Bad credit can be a result of:

  • Missed or late payments on loans, credit cards and mortgages
  • County court judgements (CCJs)
  • Accounts in default
  • Bankruptcy
  • Debt management plans
  • IVAs

Whatever the cause, our team are always here to advise and guide you in the right direction, helping you to make an accurate decision based on your personal situation.

money and clock bad credit mortgages

How to get a mortgage with bad credit

 
 
 
 

Getting a mortgage with bad credit or a low credit score can be a bit more complex, so it is important to try and get a few things organised first.

  1. Assess your credit record – Your first step should be to understand what is actually showing up on your credit record. In doing so, you will have a better idea of which companies will be able to help you.
  2. Think about your deposit (if you are buying a house) – The higher the deposit, the less of a risk you are. So, it is worth trying to save up as much of a deposit as possible. By doing this, you may improve your chances of getting accepted.
  3. Reduce the number of credit searches – When you’ve submitted an application to borrow money, a credit search will be performed on you. Although this is standard, if you submit lots of applications with different providers and you are rejected, this can show up on your credit record in the future. This could cause further problems down the line. Therefore, it is important to try and avoid having too many hard credit searches.

Speak to an expert – Talking with one of our qualified mortgage advisors can help you understand what options are available to you and what you need to do next.

If you're having financial problems, it's a good idea to reach out to your current creditors for help. They may be able to offer support or arrange alternative repayment plans. For extra support, you could also contact MoneyHelper or Citizens Advice Bureau (CAB) who offer free advice.

How do I enquire?

Call us for FREE or enquire using the form below.
Don't forget – making an enquiry will not affect your credit rating in any way!

ENQUIRE NOW
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Applying for a mortgage with credit problems

 
 
 
 

The application process is similar for every customer, whether you have good or bad credit. You can apply either by phone or through our online form above.

  1. Start by making an enquiry to our team either by calling us or by using our online form above.
  2. You will need to answer some questions first, so we can understand your circumstances in order to find a product that fits.
  3. We will search our databases to find you the best possible outcome for your circumstances.
  4. If we find a suitable product, we will talk this through with you so you can decide if it is the right fit.

Our advisors are here to support you every step of the way. If any concerns or uncertainties arise, they’re on hand to ease these.

hands and keys bad credit mortgages

Types of bad credit mortgages:

 
 
 
 

Credit issues can be the result of many different factors. Therefore, there are a variety of solutions available, to make sure the right help is given to each and every customer.

Mortgages with a CCJ

A CCJ or county court judgement is a type of court order, which can be registered against a person who has not met repayments. They can be harmful to your credit profile and can make it difficult to get a product. Luckily, our panel of specialist lenders have solutions which can help, meaning that you may be able to get a mortgage with a CCJ.

Mortgages with a default

A default is where a person’s account is closed down, because they have failed to make repayments. An example of this would be if you keep missing or forgetting to pay your mobile phone contract, your provider may choose to close your account. In this instance your account would be in default. Lenders may be less likely to offer you a loan if you have defaults, as it signals that you could be a risky person to lend to. However, our panel of lenders have products with flexible criteria, so we may be able to get you a mortgage with a default.

Mortgages with late payments

If you have missed or late payments on your credit record, you may be considered to be a higher financial risk. Therefore, many lenders may be reluctant to offer you products. Our lenders take a more relaxed approach when it comes to assessing cases. This means they are often comfortable with lending to you even if you have missed or late payments on your credit profile. So, we may be able to help you get a mortgage after late payments

Whilst it is still possible to get a mortgage with these credit issues, it is worth noting that the options may be more limited and interest rates may be higher to balance the risks for lenders.

person climbing ladder bad credit mortgages

Do high-street lenders offer bad credit mortgages?

 
 
 
 

The criteria varies between different high street lenders, with some being more relaxed than others are. Therefore, it depends on the provider you go with.

Generally, they have more strict criteria than specialist mortgage providers. This can make it difficult to get approved with a high street lender if you have bad credit.

However, if you have only missed the odd payment on small balance credit items or it has been a long time since you missed any repayments, they may be more willing to accept you.

But, if your adverse credit is recent or if your credit background is very poor, you are unlikely to find a high street provider willing to lend to you.

Despite this, there are many other specialist mortgage brokers, like us, who can help you find a product.

We have a panel of lenders who take a more flexible approach to lending, which means you are more likely to get accepted, even with a poor credit background.

approved bad credit mortgages

How can a bad credit mortgage broker help?

 
 
 
 

If you have a bad credit history, your borrowing options become a bit limited. Therefore, there may only be a selected number of lenders who are able to help you.

Finding these lenders can be hard, particularly when you don’t know the market. That’s where a bad credit mortgage broker can help.  

With specialist industry knowledge and an in-depth understanding of what products are available to which customers, they are well equipped to find you a good product.

What’s more, they can find all this information in a few quick searches, through their databases. This means that you can find relevant products quickly and efficiently.

Using a broker can be useful, but there are usually extra fees involved than if you went directly to a lender. 

If you’re looking for a reliable bad credit mortgage broker to help you, then you’ve come to the right place. We focus on helping customers with credit problems, allowing them to achieve their goals. Whether you're looking to get your first mortgage or are considering remortgaging with bad credit, we may be able to help you. 

What our customers say about us

 
 
 
 
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"The Loan Engine dealt with my bridging loan, and I can honestly say that they were more proactive than me, which is saying something! I can't fault them at all - every time I rang, they knew exactly the latest position of my case, and were always helpful and polite. "
Mrs W, Bordon
22 Jan 2024
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"Great. Very helpful. Worked hard for us. Worth 5 stars. Use them anytime. "
Mr H, York
17 Jan 2024
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"They’re friendly and helpful start to finish sandip, emily thank you. From start to finish very helpful I will recommend to everyone thank you."
Mr S, Merthyr Tydfil
05 Jan 2024
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"Excellent service from start to finish. They went the extra mile when complications arose, big shout out to Thisara. I can’t recommend them enough!"
Mrs M, Leeds
12 Dec 2023
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Frequently Asked Questions - Bad credit mortgages

 
 
 
 
  • Can you buy a house if you have bad credit?

    Yes, you can buy a house if you have bad credit. Specialist mortgage providers offer products with more flexible criteria. This means they can help a wide range of customers with complex circumstances, including those with a less than perfect credit profile.

    Interest rates may be higher than if you had a good credit score and there may be fewer options, but it is still possible.

  • Can I remortgage with bad credit?

    You can remortgage your property even if you have bad credit. Many specialist mortgage brokers have a number of lenders available who have remortgage products specifically designed for people with credit problems.

  • How can you improve your credit score?

    Improving your credit score can be achieved by making payments on time, registering for the electoral roll, closing accounts you no longer use, and monitoring your credit report frequently to ensure it is up to date.

  • How do I know if I have bad credit?

    Usually you will be aware if you have bad credit, because it will have been the result of missing important repayments, which lenders will have notified you of. However, if you are unsure, you can check your credit score through one of the credit reference agencies such as Experian, Noodle or Equifax.

  • What documents may I need to apply?

    As with any loan application, you will need to provide documents to prove your identity and show lenders how much income you currently make.

    Some of the documents you may need are:

    - Proof of your income such as payslips, tax returns and bank statements.

    - Proof of your identify, such as passport or driving licence.

    - Proof of residency and property ownership.

  • Do lenders always check your credit history when you’re applying?

    All providers will check your credit history when you apply for a product to decide whether they should let you borrow from them.

    It’s important to remember that lenders don’t know who you are, so they need to look at certain elements to understand how reliable you would be when making repayments. By looking into your credit history, it gives lenders an insight into your finances, allowing them to see whether you’ve struggled to make repayments in the past.

    Using this they will be able to decide how much of a risk you are and therefore whether they should let you borrow from them.

  • Does having bad credit make mortgage products more expensive?

    If you have poor credit, it can make you a higher risk to lenders. Due to this, they may increase the interest rates to lower some of the risks of lending to you.

    From this perspective it could be more expensive, as you would be charged a higher amount of interest.

    We will always make sure the product is affordable for you. It is important you make sure you are happy with the repayments too, as if you default on the loan your property could be at risk of repossession.  

  • Am I eligible for bad credit mortgages?

    To see whether you are eligible for these products, you will need to speak with a lender or broker.

    Each lender may have different products, and so their qualifying criteria may range. This means that you may be eligible with certain providers, but not others.

    We have a variety of lenders on our panel who can help you with the following situations:

    - Late or missed payments

    - County court judgements

    - Accounts that are in default

    - Bankruptcy

    - Debt management plans

    - IVAs

  • How much deposit do I need for a bad credit mortgage?

    There isn’t a specific rule on the deposit you need for these products. However, you may be able to get a better product if you have a larger deposit, so it is beneficial trying to save up as much as you can. 

    There are a few methods you can use to help you save up more money for a deposit, including a range of initiatives launched by the government.

  • Would I be able to get a mortgage if I have bad credit and no deposit?

    It can be very challenging to get accepted if you have poor credit and no deposit, as lenders have no proof that you would repay your loan. 

    However, that doesn’t mean to say it’s impossible either. There may be other factors that could boost your chances, including if you’re on a high income or are looking for a small loan.

Useful guides and blogs

 
 
 
 
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