5 Ways to get a Mortgage with Bad Credit

  1. Check your credit report

When you apply for a mortgage, lenders will always carry out a credit check on applicants. If you have bad credit, it’s highly advised to download a copy of your report online. A simple google search will provide you with endless option on how to get a free copy of your credit file.

Once you have your credit report, you can then see exactly what lenders will see. By doing this, you have an idea of the types of lenders you need to approach. This can be difficult, as there are so many different lenders to choose from. This brings us on to our next point.

  1. Speak to a specialist mortgage broker

Utilising the expertise of a specialist mortgage broker can be very beneficial when you need a mortgage with bad credit. This is because mortgage brokers understand which lenders they can approach based on your circumstances. Specialist brokers can also search the entire market for you, ensuring you get the best possible deal available.

  1. Get an adverse credit card

Using credit cards to build up your credit score is a great idea. Just make sure you don’t get too many lines of credit and always use less than your limits. Make sure you repay your creditors on time every month and with time, your credit score will improve.

There are adverse specific credit cards available for those with bad credit. These can be great for when mainstream lenders won’t agree to giving you credit, based on your history.

  1. Don’t approach high street banks

If you have adverse credit, the chances are that high street banks will decline you. High street banks are more used to dealing with borrowers with clean credit files. There are a lot of specialist lenders out there, but they’re only accessible through specialist mortgage brokers.

If you do go to a high street bank and you do get declined, this can further damage your chances of getting a mortgage. Each time you apply for credit or a loan, footprints are left on your credit file. If you apply and get rejected, this can further lower your credit score.

  1. Don’t panic and don’t give up

It can be frustrating to find your dream home and then be declined or cautious because of poor credit problems. It’s important to stay focused and simply not give up hope before speaking to a specialist.

There are specialist companies such as Expert Mortgage Advisor, a UK based mortgage website that help borrowers with bad credit. With a range of articles based on adverse credit mortgages, they also have mortgage brokers available to speak to and answer any questions. You can visit the website here.

Posted in: Mortgage