You want to get on the housing ladder, but your credit isn’t good. That doesn’t mean there aren’t options available. As industry specialists, we help people like you access suitable mortgages in the UK. Want to know how it all works? Then read on!
What counts as poor credit in the UK?
Poor credit is usually when your credit history features one (or more) of the following:
- Missed or late payments
- Defaults on loans or credit cards
- County Court Judgments (CCJs)
- Individual Voluntary Arrangements (IVAs)
- Debt Management Plans (DMPs)
- Bankruptcy or repossession
Can you still get a mortgage with bad credit in the UK
The good news is that as a specialist mortgage broker with access to an extensive range of lenders, we can give you the best chance of obtaining a mortgage despite your situation. While a poor credit history means the process may not be straightforward, we can connect you with specialist mortgage lenders in the UK who can find a solution for your circumstances. You may even be able to get a mortgage with a CCJ.
How UK mortgage lenders assess your application
Lenders use the information in your credit history to decide if they’ll lend to you, how much they’ll lend you and what interest to charge. To make a decision, they will refer to certain records. These include your credit score, which is held by Experian Equifax or TransUnion, your debt-to-income (DTI) ratio, proof of income (payslips or SA302 for self-employed), bank statements (to check spending habits), and your overall credit history since your most recent credit problem.
Steps to improve your chance of mortgage approval
If you have a poor credit history, it makes sense to try and improve it. If you’re thinking along these lines, here are some steps you can take:
- Pay bills promptly. This is the primary factor impacting your credit score.
- Reduce outstanding debt. Pay off credit cards and loans if possible.
- Make sure your credit score has no mistakes. Fixing errors can boost your score.
- Get on the electoral roll. This helps lenders to check your identity.
- Try not to make too many credit applications. This can make you look desperate in the eyes of lenders.
How Mortgage Advisers UK can help find the right lender for your situation
We have a long history of giving bad credit mortgage advice. If you need a mortgage for a low credit score, get in touch for tailored mortgage guidance and access to specialist lenders.
