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What is a Default?

How do I get a Mortgage with Bad Credit?

Can I get a Mortgage with a Default?

Are Some Defaults More Severe Than Others?

How Soon After a Default Can I Apply for a Mortgage?

How Can Friends Capital Help with Bad Credit Mortgages?

Mortgage with a Default 

If you’ve missed a payment on a loan or ignored a debt, you might be one of the thousands of Brits with a default on your credit report. Many people believe that they can’t get a mortgage because they have a history of bad credit. If you have a default listed on your credit report, the good news is that there could still be mortgage options available to you. Whilst it can be difficult, it’s not impossible if you have the right mortgage broker to help you. 

Friends Capital have relationships with lenders of bad credit mortgages. We can help you find the best mortgage deal. We will review your personal circumstances and then search the entire market to ensure you get the best mortgage rates possible. We will then deal with all the paperwork, submit your mortgage application, liaise with your mortgage lender and solicitor, and ensure that your mortgage application is completed as quickly as possible. We can:  

  • Save you money on your mortgage deal  
  • Offer a free consultation  
  • Offer unbiased financial advice  
  • Save you time in your mortgage application  
  • Give you a dedicated account manager who is available to you through the process  

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What is a Default?

A default is a negative payment record  on your Credit Report, that arises because of missed payments  Therefore  in the eyes of a mortgage lender, you will need a specialist, impaired  credit score mortgage.  

bad credit mortgage is for borrowers with adverse credit, a poor credit score or low credit rating. Lenders and Specialist providers will provide loans to bad credit applicants, although the rates and payments offered might be higher than for customers with clean credit. If you have enough income or a healthy deposit, it may be possible to find a competitive deal. A mortgage broker, like us, can help you get the best possible mortgage deal according to your circumstances. 

How do I get a Mortgage with Bad Credit?

Defaults on a credit file are one of the most common reasons for the refusal of a mortgage by many lenders, especially on the high street where generally only applicants with a clean credit history are approved. 

Before applying for a bad credit mortgage if you have a poor credit rating it’s best to:  

  • Check your credit score: Checking what you credit issues are will save time. You can check your credit score here.  
  • Raise as much deposit as possible: It’s a good idea to raise as much extra deposit as you can as putting down extra can offset some of the risk involved in the deal.  
  • Seek unbiased advice: If you contact an independent mortgage broker, they will give honest and tailored advice on your situation. Most give free consultations,  Friends Capital do.  
  • Avoid multiple searches: Making multiple applications online or approaching a mainstream bank for a bad credit loan comes with the risk of being turned away. And hard searches will affect your credit score.  

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Can I get a Mortgage with a Default?

In short, yes, however it will be a challenge. There are several mortgage lenders who are happy to approve applicants with all sorts of defaulted credit accounts on their file. Working with a mortgage broker can help you locate these lenders quicker, without the hassle of having to compare hundreds of rates yourself. Not only this, they will fill in the application for you to ensure the best chance of success.

Are Some Defaults More Severe Than Others?

Yes, they are. All lenders will consider a secured loan or mortgage payment defaults to be very serious and weigh them accordingly when making a decision. However, some lenders are more relaxed about, for example, missed payments on mail order accounts or mobile phone contracts. Defaults on credit cards and loan repayments fall in the middle ground. However all potential lenders will ask the reason for any accounts that have fallen into arrears in the past , these may have happened due to periods of unemployment or a change in someone’s domestic circumstances ie divorce , illness etc. 

How Soon After a Default Can I Apply for a Mortgage?

The longer a default has been on your record, the less impact it is likely to have on your ability to obtain a competitively priced mortgage. It will stay on your credit record for five to six years from the date of the default, after which you can start to repair your credit rating. However a mortgage broker can help you get a mortgage, even if you have a default.  

How Can Friends Capital Help with Bad Credit Mortgages?

Friends Capital have  relationships with lenders that can accommodate  applicants with poor or  bad credit profiles.. We can search the entire market and get access to the best and most suitable  deals available. Then we will choose the deal that are most appropriate to your personal circumstance. We can: 

  • Find you a lender that specialises in bad credit mortgages 
  • Find you a deal appropriate to your personal circumstance 
  • Offer unbiased financial advice 
  • Give advice on what mortgage lenders will require, including giving you advice on an exit strategy for the mortgage end 
  • Give you a no obligation mortgage quote 
  • Deal with all the paper work, liaise with the lenders and solicitors. We will also make sure the application goes through as quickly as possible 

Two Steps to Contacting Friends Capital 

Step 1 

Either call us, email us , book an appointment online or request a call back below.

Step 2 

One of our friendly advisors will either call you back within 24 hours (usually the same working day), or will take details from you in order to best deal with your situation. 

When you speak with us, we will take a ‘fact find’. At this stage we take basic details about your situation. We will then search the whole of the market and find you the best deal available. 

If you are happy with the deal that we offer, we will then contact the lender for you and get you what is called a ‘decision in principal’. 

If you’re happy with the decision in principal then we will secure this deal for you and deal with the application for you on your behalf. 

We aim to get the lowest mortgage rates on the market

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