The first three things to know
Bad credit doesn’t mean you’ll never get a mortgage, but there are a few things to understand first.
Fewer options Fewer lenders and mortgages will be open to you.
Bigger deposit Lenders might ask for a larger deposit, up to 15%.
Higher interest rate Interest rates might be higher to start with.
An adviser could make the difference
Most importantly, there are options open to you and one of our advisers are in the best position to help you find a mortgage from a more flexible lender to fit. They’ll explain everything to you, run you through your mortgage options and answer your questions in plain English. They’ve helped loads of people who didn’t think a mortgage was possible.
What we’ll talk about during your appointment.
What your repayments and deposit might look like.
How making a few changes can help improve your credit rating.
Whether there are better options on the table.
Something to bear in mind...
Other ways to help?
Speaking to one of our advisers is the best way to get the ball rolling, but there are avenues to explore.
Four big questions
We help people with poor credit get on the property ladder everyday. These are the four questions we’re asked all the time.
Most negative marks stay on your credit file for six years. That includes missed payments, defaults and CCJs. But you don't need to wait the full six years for things to improve. Many lenders give far less weight to older issues, sometimes after as little as two or three years. The closer a marker gets to dropping off, the less it tends to count against you.
Often, yes. Specialist lenders regularly help people with a mortgage with a default or a mortgage with a CCJ on file. It helps if the debt is settled rather than still outstanding, and if some time has passed since it happened. Lenders also like to see a steady track record since then, with payments made on time and no new issues cropping up.
It varies by lender. Bankruptcy is the most serious marker, so most lenders want to see at least a few years pass after you were since the bankruptcy before they'll consider an application. On top of that, they'll want a clean recent track record, with bills and credit paid on time and no fresh problems. The exact amount of time varies from lender to lender, so it's worth getting advice on which ones are likely to say yes at your stage.
No. A soft search doesn't affect your credit score at all, and other lenders can't see that it's happened. This is the kind of check used for eligibility tools and a mortgage in principle, so you can explore your options without any impact. A hard search is different. That only runs once you formally apply, and it shows up to other lenders.