Browse our FAQs below, as you may find the answer you are looking for here. Alternatively, our friendly and helpful team of mortgage advisers are ready and waiting to assist. You can even request a call back for a time that suits you.
Bad Credit History FAQs
Can I get a mortgage with a bad credit history?
Yes. We have over 100 years combined of experience in securing specialist mortgages, including bad credit mortgages.
While having a low credit rating would normally limit your options, with our help and access to specialist mortgage lenders, we could make the seemingly impossible, possible.
What specialist mortgage lenders work with bad credit?
There are specialist mortgage lenders that provide bad or low credit rating mortgages – thankfully as whole of market mortgage advisers, we can access these lenders, which you may not find anywhere else!
How do bad credit mortgages work?
Bad credit mortgages are just like any other mortgage, the key difference is the interest rate, which would typically be higher. In addition, you may also potentially be limited in terms of the amount you can borrow.
Either way, you are going to want our expert advisers on your side, as they will do everything they can to try and get you the right mortgage given your circumstances.
No Credit History
Do you need a credit history to get a mortgage?
In short, it’s helpful to have a credit history. This is because lenders need to assess your ability to repay the mortgage, and with no credit history, there is an element of the unknown.
Thankfully, we work with a wide range of specialist mortgage lenders, and with our experience, we may be able to help you secure a mortgage with little or no credit history.
Which you may not find possible with mortgage advisers that are not whole of market.
How do I build up my credit file?
Essentially, a lender is looking to see if you are financially responsible and able to make repayments. Therefore, if you can demonstrate that you can repay some form of credit such as a mobile phone contract over some time, then this is advantageous.
How many years of credit history do I need for a mortgage?
The short answer is it depends. Some lenders for instance may look at the last six years of your credit file, however, each lender is different. It’s advantageous to build up a credit history, as most lenders will use this information to assess your financial situation. Even if you have little or no credit history, we could still help.
How many years do you have to be self-employed to get a mortgage?
While most lenders will ask for two or three years’ worth of accounts, it can be possible to obtain a self-employed mortgage with one year’s worth of accounts.
Is it harder to get a mortgage when self-employed?
Unfortunately, it can be tougher to get a mortgage if you are self-employed. This is primarily because you will need to demonstrate to the lender (through your accounts), that you have a reliable and constant income.
While you may need to jump through more hoops, with our help and knowledge of self-employed mortgages, we can make the process simple, and stress-free.
Can I get a mortgage with one year of self-employment?
Yes. While this can be more challenging, we have helped countless customers in self-employment and may be able to help you too. Most lenders will typically ask for at least two-to-three years of accounts. Although even with one year’s worth of accounts getting a mortgage is not impossible.
Can I still get a mortgage with a CCJ?
Yes. With our expert help and knowledge of specialist mortgages, we could help you to obtain a CCJ mortgage.
Having a CCJ (County Court Judgement) will often make obtaining a mortgage challenging. That’s why you need a dedicated mortgage adviser that is up to the challenge, and that’s where we come in!
Can I get a CCJ removed from my credit file?
You may be able to have a CCJ removed from your credit file it was paid in full within 30-days of being issued. Or if it has been at least six years since it was issued.
How does a CCJ impact my mortgage application?
As with all mortgage applications lenders are assessing the risk – simply put, they want to ensure that you can afford and make the monthly repayments.
Unfortunately, if you are issued a CCJ, then this could signal to the lender you are unable to manage your finances. Although, of course, some specialist mortgage lenders may be able to look past that, especially if you have a clear credit history since the CCJ was issued, along with a proven income.
First Time Buyers
What is the minimum deposit for a first-time buyer?
This may vary depending on your circumstances, however, for many lenders, your deposit should be at least 5% of the property’s value.
Remember, if you can save and put down a larger deposit, then typically you should be able to get a lower interest rate on your mortgage.
What about help to buy schemes?
There are of course Government schemes currently available, however, to be eligible you, and the property you are looking to purchase must first meet strict criteria.
How much you could borrow would depend on your circumstances. For instance, lenders will undertake affordability checks, with your deposit, and credit history factoring into the decision.
If you are looking for an initial estimate then take the first step today by using our mortgage calculator.
What risks do I need to be aware of?
Unlike many other loans, a mortgage is secured against your home. This means if you are unable to keep up with the monthly repayments, then your home may be repossessed. However, while this is a possibility, it is course, often the last resort.
If you do encounter financial difficulties which impacts your ability to make mortgage repayments, then you should always contact the lender in the first instance, as there may be options available to you.
Take the first step to getting a specialist mortgage today, completely stress-free.
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The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK. Please be aware that by clicking on to the above links you are leaving the Mortgage Experience website. Please note that Mortgage Experience nor HL Partnership Ltd are responsible for the accuracy of the information contained within the linked site(s) accessible from this page. There may be a fee for mortgage advice. Your home may be repossessed if you do not keep up repayments on your mortgage.
Mortgage Experience Limited is registered in England and Wales. Company No. 10428355. Registered Office: Renaissance House, 4 East Terrace Business Park, Euxton Lane, Chorley, PR7 6TB