Applying for a mortgage can already be a stressful and tedious process, but if you have bad credit or lots of debt you may find it even harder to be approved.
The good news is that it is still possible to get a mortgage if you have poor credit! This means you still have the option of homeownership and can start searching for your forever home.
Getting a mortgage and managing it correctly can even help your credit score. If you keep up with payments and don’t fall behind, it will improve your score in the same way that any other credit card or loan repayments would.
Having bad credit doesn’t rule out the option of a mortgage. You may find it harder to find a lender, however there are options out there designed specifically for those with bad credit.
These often include higher fees and interest rates though, so you must be prepared to pay these in order to accept an offer of a mortgage.
If you already have a mortgage but are looking to remortgage with bad credit, you may want to enlist the help of a specialist broker to review all your options.
To increase your chances of getting a mortgage, you may want to try and build your credit score before applying. There are several short-term ways to boost your score, such as:
If you make a few changes, you may be able to secure a mortgage and get yourself onto the property ladder. With good money management, you can be on your way to paying off your debts and becoming a homeowner.
Your home may be repossessed if you do not keep up with your mortgage repayments.
There may be a fee for mortgage advice. The actual amount you pay will depend on your circumstances. The fee is up to 1% but a typical fee is £595.
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Create Finance Limited is an appointed representative of Mortgage Advice Bureau (Derby) Limited which is authorised and regulated by the Financial Conduct Authority.
Create Finance Limited. Registered Office: 35 Friar Gate Studios, Ford Street, Derby, Derbyshire, England, DE1 1EE. Registered in England Number: 09582938.
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. There may be a fee for mortgage advice. The actual amount you pay will depend on your circumstances. The fee is up to 1% but a typical fee is £595.
The guidance and/or advice contained within this website is subject to the UK regulatory regime, and is therefore targeted at consumers based in the UK. The actual rate available will depend upon your circumstances. Ask for a personalised illustration.
We may receive commission that will vary depending on the lender, product or permissible factors, The nature of any commission model will be confirmed to you before you proceed. Create Finance Ltd are a credit broker, not a lender.