Bad Credit Mortgage Advice

Some people think that bad credit is a name given to someone who has been rejected for any credit in the past. When in reality, someone with bad credit is a person who has not been making their payments on time or who has faced any financial issues in the past, such as bankruptcy, late payments, or CCJs. If you are facing a poor credit situation, it is essential to remember that different lenders have different lending criteria; some may show more tolerance than others. Hence there is no fixed rule on what lenders may consider bad credit. Nevertheless, a few activities may come up on your credit report as high risk for most lenders, such as loan default, late or missing credit card payments, and frequently applying for credit. If you doubt that you may have a bad credit score, sign up for your free mortgage advice consultation at Care Financial Services, from which you can get a rough idea of your credit score and how lenders will judge you.

A bad credit mortgage is very identical to any regular mortgage. The only difference you may find is that bad credit mortgages may come with higher interest rates, and you may be limited on your borrowing power. If you are applying for a bad credit mortgage, then it is essential to remember that you may need a larger deposit of at least 20-25% of the property value, unlike a standard mortgage where you only need a minimum of 5-10% deposit. The main reason for this is that bad credit client pose a higher risk for lenders. 

We make sure we can facilitate our customers in every way possible, especially those clients who struggle with a poor credit score. We ensure our bad credit deals are available to as many clients as possible with various rates, deals, and lenders that suit each customer individually. However, we do have eligibility criteria to make sure that our mortgage deals are correct for you. 

Below are the standards you must fulfill to be able to apply for a bad credit mortgage:

• Age: 

You must be aged 18-70 years and you must repay your mortgage loan by your 70th birthday. 

• Employment status: 

You must secure employment status for a bad credit loan, either employed or self-employed. In the case of self-employment, we require some further details of the business performance, both current and from the past. 

• Homeowner or tenant? 

You must own your own home and are not a tenant to apply for a bad credit mortgage. Please note that we do not hold your property as security in such mortgage types, but you must live in your own home. 

Below we have listed the criteria for the application for a bad credit mortgage: 

• Address:

We will require your current address and address history from the past three years.

• Bank details: 

We will also require a few bank details. Firstly, your online banking login details, along with your bank account number and sort code; this will give us access to your transaction records and authorize us to analyse whether or not you have the money for the monthly mortgage instalments. 

When you apply for a mortgage, it is always a good idea to have a look at your credit score, as lenders usually analyse your situation mainly on your credit history/score. Lenders establish their judgments on your credit report and look for candidates that can pay their monthly payments on time and can systematically manage their debts. If you want to increase your credit score, simple activities such as managing credit cards, mobile contracts, and household bills on time can go a long way. However, it is essential to remember that different lenders have multiple criteria on which they may judge not all lenders are the same. Contact Care Financial Services to book your free mortgage advice session so that we can give you some advice and direction to increase your credit score. 

Yes, you can pay off your bad credit loan early, but you will need to notify our management team at Care Financial Services so that we can help you with all the necessary details. 

Reference agencies are available for the compilation of credit reports. These agencies, based on your financial information, will compile your score, which may vary according to the agency you choose. The credit report can be used as the basis of your credit rating as lenders have different criteria when studying your mortgage application. Most lenders give more importance to specific details than an estimated score by any agency. To find out more about your credit report, contact us today to set up a complimentary appointment with our expert mortgage advisors. 

Finding out your credit score can look like a daunting task, but if you are considering applying for a bad credit mortgage, then it is always good to know where you stand and what efforts you must make to achieve your mortgage before you apply. Credit scores are not as bad as one might think; many factors are considered when calculating a credit score. Finding out your credit score is very easy if you are using a referencing agency. These agencies have score-checking systems that give you a unique score based on your financial statistics.