When Do You Need A Specialist Lender For A Mortgage?

September 15, 2022

If your financial or employment circumstances do not fit the norm, but you are considering applying for a mortgage, you may have been told that you will be limited to a specialist lender. This may be the case, but it doesn’t apply to all circumstances. Here’s a look at what factors might influence the decision.

Adverse credit record

If your credit score is poor, then you may have been told to forget about a mortgage. However, there are still options, and in some cases, you may still be accepted by a mainstream lender, rather than a specialist lender who may charge higher interest rates or ask for a larger deposit.

It depends on the type of issues that you have had, how long ago they were, and how much money was involved. More recent issues will be more of a problem than ones from years ago, and any issues older than six years should not appear on your record at all.

Before making any mortgage enquiries, find out as much detail as you can about your situation in advance. If there are reasonable explanations for adverse events, such as job loss, pandemic-related income loss, sickness, or relationship break-up, a lender may take these circumstances into account.

See if there are ways that you can tackle outstanding issues, such as paying off debts, setting up direct debits to avoid future missed payments, or arranging a debt management plan if you are having trouble meeting a current loan repayment.


Self-employed people may have been told that it is more difficult for them to get a mortgage. This is not necessarily true, especially if a stable income over at least two years can be proved. Self-employment is now more common across a range of industries and occupations, and many lenders now have more flexible attitudes than in the past.

There are some steps you can take to improve your chances of getting a good deal if you’re self-employed. Some of these are just the same as would apply to an employed person, such as saving up for as much deposit as possible, and keeping an eye on your outgoings to avoid unnecessary expense in the six months up to your application.

Ideally, you should have two years of accounts to prove that your income is sufficient and stable enough to support the mortgage repayments. However, some specialist lenders may consider one year’s accounts. Some lenders will make there offer based on the most recent year’s trading profits, which may be helpful if you’re still in the process of growing a business.

If your circumstances are not straightforward, it’s always worth seeking advice from a professional mortgage broker, rather than applying straight to your bank or building society. A specialist mortgage advisor will have access to a far wider range of lenders, who consider each customer on a case-by-case basis, rather than a fixed criterion.

If you need a mortgage broker for defaults, please get in touch today.

Your home may be repossessed if you do not keep up with your mortgage repayments.

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