Poor Credit Mortgages
Updated 20th November 2021.
Poor Credit Mortgage Advisors.
Have you struggled to get a mortgage because of poor credit history? The Mortgage Experts Online accredited poor credit mortgages advisors make it easier for you to find a mortgage regardless of your credit record. Furthermore, our poor credit mortgage advisors work with many customers who want to know how to get a mortgage with poor credit. If you are wondering that yourself, you’re in the right place. Fortunately, the mortgage market is vast and poor credit expert advice is close at hand. Conditions for applicants have changed significantly for the better in recent years, making poor credit mortgages more achievable now than ever.
If you need a mortgage advisor for a poor credit mortgage, do not hesitate to get in touch with us today! Fill out a form online, or give us a call on 0300 124 5655
Scroll down for more information and FAQ’s.
Poor Credit Mortgage Topics.
- Poor credit mortgages explained
- Can I get a poor credit mortgage with defaults?
- Can I get a poor credit mortgage with CCJ’s?
- Poor credit mortgage after bankruptcy.
- Can I get a poor credit mortgage after a repossession?
- Can I get a mortgage whilst in a debt management plan (DMP)?
- Mortgage after a debt relief order (DRO)?
- Can I get a mortgage after an IVA?
- Speak to a poor credit mortgage advisor
Poor credit mortgages explained.
Also known as subprime or bad credit mortgages. The term poor credit covers a wide range of different things. In this article I am going to explain each of the different types of poor credit and how this affects getting a poor credit mortgage.
The key to any mortgage application, and especially poor or bad credit mortgages is to have all the information at hand before approaching any mortgage lenders.
The poor credit mortgages experts will ask for a copy of your credit report and from this they will be able to advise you on the best way forward. Click here to access your credit report.
Can I get a poor credit mortgage with defaults?
A default is a negative payment marker that arises because of unpaid arrears on your credit file.
When a default is issued it usually means that the lender no longer sees the borrower as a customer, but instead sees them as a debtor. Read our article of mortgages with defaults.
It is possible to get a poor credit mortgage with defaults; this will come down to the following factors.
- Date of default.
- Default amount.
- Type of account.
- Default satisfied or not.
- Total amount of defaults
Can I get a poor credit mortgage with CCJ’s?
CCJ stands for ‘County Court Judgement’, which is a type of court order directing someone to repay an outstanding debt. Lenders can get one against you if any of your accounts go into default.
It is their way of getting you to pay. A County Court Judgement will stay on your credit report for six years from date of registration. Read our article on mortagegs with CCJ’s.
It is possible to get a mortgage with a County Court Judgement, this will come down to the following factors.
- Date of County Court Judgement.
- County Court Judgement amount.
- County Court Judgement satisfied or not.
We have seen a growing trend over the last few years of clients getting a County Court Judgement for a parking fine, which in turn affects credit score and lender options.
Our mortgage experts will be able to advise you on the best solution for your circumstances.
Poor credit mortgage after bankruptcy?
Bankruptcy is a legal status for people who are unable to repay the money they owe. You can only be made bankrupt if you have debts over £5,000, and it is generally seen as a last resort.
You can be made bankrupt by a creditor or you can choose to do this yourself via the courts. Read our article on mortgage after bankruptcy.
It is possible to get a poor credit mortgage with a bankruptcy; this will come down to the following factors.
- Date of bankruptcy registration.
- Date of bankruptcy satisfaction.
- Reason for bankruptcy.
- Credit profile since the bankruptcy.
Even if the bankruptcy is not showing on your credit report you must always disclose this to your mortgage expert, the solicitors perform a bankruptcy check as part of their due diligence, if this is then outside lenders criteria the whole process will fall down at the very last stage.
Can I get a poor credit mortgage after a repossession?
Repossession is the term used when a financial or lending institution repossesses or ‘takes’ the item which was offered as Security on a secured loan in the event of payments entering default.
When this involves repossessing a house this is truly the option of last resort, and most lenders will try and avoid this option. Read our article on mortgage after repossession.
It is possible to get a poor credit mortgage after a repossession; this will come down to the following factors.
- Date of repossession
- Any outstanding monies owed to the previous mortgage company.
- Reason for repossession
- Credit profile since the repossession
Some lenders will not lend to anyone who has ever had a property repossessed, so always declare this to your mortgage expert form the outset.
Our mortgage experts will then be able to advise you on the correct lender for your circumstances.
Can I get a poor credit mortgage whilst in a debt management plan (DMP)?
A debt management plan is an agreement that can be made between you and your creditors (companies you owe money to) if you’re unable to make payments on time.
It allows you to pay a smaller amount each month than originally agreed. You will still have to pay off all your debt, but you can so over a longer period. Read our articles on DMP mortgages.
It is possible to get a poor credit mortgage with a debt management plan; this will come down to the following factors.
- Date debt management plan started.
- Conduct history – payments made on time.
- If discharged – date of discharge.
- Reason for entering debt management plan.
- If debt management plan is to remain in place with the new mortgage
Some clients will want to remortgage and pay of the debt management plan, some will want to keep the debt management plan in place with the new mortgage.
Ideally you will need to show 12 months of good payment conduct within the debt management plan.
Poor credit mortgage after a debt relief order (DRO)?
A debt relief order (DRO) is a way to clear your debts. It’s usually suitable for people with a relatively low level of debt, and relatively few assets (i.e. belongings of value, such as a car or house).
A debt relief order may be a cheaper and simpler alternative to bankruptcy. Mortgage lenders will look at this in the same way as a bankruptcy.
It is possible to get a mortgage with a debt relief order; this will come down to the following factors.
- Date of debt relief order registration
- Date of debt relief order satisfaction
- Reason for debt relief order
- Credit profile since the debt relief order
This is seen by many as a mini bankruptcy, but most lenders will have the same criteria in place as a bankruptcy.
Can I get a mortgage after an Individual Voluntary Agreement (IVA)?
An Individual Voluntary Arrangement (IVA) is a formal and legally binding agreement between you and your creditors to pay back your debts over a set period of time. An IVA must be set up by an insolvency practitioner.
It is possible to get a mortgage after an IVA; this will come down to the following factors.
- Date IVA was registered.
- Date IVA was discharged.
- Credit profile since IVA.
Currently an IVA must be satisfied before you will be able to obtain a mortgage, the length of time for satisfaction varies from lender to lender.
Speak to a poor credit mortgage advisor.
There are many lenders available ranging from high street to specialist lenders. Most people go to their own bank, get declined or cannot borrow what they need. However, just because one lender has declined you, do not give up.
Our poor credit mortgages experts will look at each case before deciding which lender is right for you and your individual circumstances.
All the poor credit mortgages brokers we work with are whole of market and offer unbiased advice.
They will have access to all the specialist lenders to really enhance your chances of achieving the mortgage you need.
The expert brokers we work with have experience in dealing with all aspects of poor credit mortgages and coupled with, using the whole of the market to access the best deals available.