Can I get a mortgage with bad credit?

17 Dec 2019

Can I get a mortgage with bad credit?

Getting a Mortgage with Bad Credit.

Here at Revolution Finance Brokers, we take pride in being able to find the best mortgage deals available to any of our clients who have bad credit. Our aim is to make it as easy as possible to get a mortgage. We make sure all recommendations made by our brokers is tailor suited to our applicant’s needs.

What types of Mortgages are available to me if I have bad credit?

Strictly speaking bad credit mortgages do not exist, however, there are lenders who lend to applicants that have bad credit. They are known as specialist lenders and their rates are slightly higher but they will allow applicants to get on to the property ladder.

What causes Bad Credit?

  1. Electoral Roll- are you registered to vote. If not it will hamper your credit.
  2. Making a lot of credit applications- if you have made a number of applications and they have been declined will lead to adverse credit.
  3. Missed payments or Defaults
  4. CCJ
  5. IVA
  6. Bankruptcy
  7. Any payday loan information.

You can make remedies to improve your credit and even with all these factors it is often not as bad as you think, those people who have had credit issues in the past could still get a mortgage – here at Revolution Finance Brokers we specialise in helping our clients who have almost given up hope.

Getting a mortgage with bad credit – how does it work?

A bad credit mortgage is similar to a standard mortgage, but they have higher interest rates and charges.

Many types of bad credit mortgage deals are available, for example, fixed, variable, and discounted rates, but that doesn’t mean they will have better rates than a standard mortgage. The opposite of this is actually more likely to be the case.

The reason for this is that the mortgage provider has less reason to loan you a larger amount of money at a lower interest rate if your credit history is poor.

You will also probably need a deposit of at least around 15% or more of the value of the property. If you can get to the 30% mark or higher that would be better for your chances of being approved.

What is the amount I can borrow with bad credit?

When you submit an application for a subprime mortgage, lenders determine how much they will lend based on both your income and your outgoings thus the more commitments that you have each month, the less you can borrow. Lenders will generally multiply your income by a set figure in order to work out how much they are willing to lend. Most lenders have a mortgage calculator on their website to determine how much they will lend you. Revolution Finance Brokers also has an up to date mortgage calculator which can make it clear how much you may be able to borrow in order to make it clear what properties are available to you.

Check your credit!

Make sure you check your credit before you apply for a mortgage. It could save you a lot of time and trouble as applying for a mortgage with bad credit that you did not know about can lead to an instant rejection and will show up on your future credit to lenders.

Contact us now to discuss your personal options, Revolution Finance Brokers specialise in commercial and residential finance in Essex, Kent, London and Hertfordshire.



Almas Uddin

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The content included in our articles, blogs, web pages and news publications is based on information accurate at the time of writing. Note that policies and criteria can change regularly throughout the UK mortgage lending market, and it remains essential to contact the consultation team to receive up to date guidance. The information included on the Revolution Brokers site is not bespoke to any circumstances or individual application scenarios and therefore is not intended to be used as financial advice. The content we share is designed to be informative and helpful but cannot be relied upon to provide individual advice relevant to your mortgage requirements. All Revolution team members are fully qualified, trained and experienced to provide mortgage advice of an independent nature. We collaborate with lenders and providers who are regulated, authorised and registered with the Financial Conduct Authority (FCA). Should you require specific mortgage borrowing types, some products such as buy to let mortgages may not be FCA regulated. The Revolution team can provide further information about regulated and unregulated lending as required. Please remember that a mortgage is a debt which is secured against your home or property. Your home can be at risk of repossession if you do not keep up with the repayments or encounter any other difficulties in managing your mortgage borrowing responsibly. This also applies to any remortgage or home loan secured against your property, including equity release products.