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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?
If you’ve missed a payment on a loan or ignored a debt, you might be one of the thousands of people 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:
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.
A 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.
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:
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.
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.
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.