There is a belief that having a less-than-stellar financial history or facing an unfortunate money situation earlier in life will shut you off from the home of your dreams, but that is simply not the case, as CCJ mortgage specialists will attest to.
Mortgages exist for people who have a low credit rating or bad financial history in general, but this is just the first of many myths about loans for people without a strong credit rating.
Unlike in Germany, where there is a de facto single dominant credit rating system, or in the US where many rely on the FICO system, there is no single credit rating system in the UK that the market relies on to prove creditworthiness.
While Experian, Equifax and other credit score products are available, banks typically use their own criteria for determining suitable borrowers.
This means that in more cases than you might expect, a missed payment, an IVA or even a CCJ may not be a complete barrier to a mortgage and there are specialist providers out there that can offer loans even in those cases.
One of the strangest parts of the financial system is that in some cases, having no debt at all is worse than having a poor financial history, as is found in the case of the “credit invisibles”.
This can create a no-win situation for young people still finding their feet and older people who have steadfastly refused to rely on credit; their positive behaviour makes them an unprofitable unknown to many lenders.
However, the rise of credit-building tools and tricks such as buying items you can already afford on finance are much more widely available to people without a lot of existing debt.
It depends on the criteria of the lender, but the ideal customer is one that always meets the minimums, never defaults but is always in some form of mild debt that they can make money off the interest of.
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