Bad credit mortgage broker

Lenders run credit checks to see how likely the borrower would be to make their mortgage payments.

If your mortgage application shows a poor credit history, some lenders:

• will not accept your application

• will ask you to provide a larger deposit

• might only lend to you at higher interest rates

Talking about your finances can also be uncomfortable. Particularly if you’re applying for a mortgage with a partner for the first time.

It's important to know and be honest about any issues straightaway to avoid surprises later on.

It’s particularly important to be upfront with your mortgage broker. This way they'll have a better chance of finding you the most suitable lender. This will also help them to give you the best advice for your situation.

Not all 'bad' or adverse credit is created equal. There are smaller cases of bad credit and more severe ones.

The extent your credit rating affects your application depends on:

• the type of credit issue on your credit report

• the amount involved

• when the credit issue happened

Some issues have more impact than others. Lenders may not view a late mobile phone payment or a missed utility bill payment too seriously. But a missed mortgage payment or bankruptcy stays on your credit report for 6 years.

You may find more lenders if you use a broker, as they'll have more knowledge on a range of lenders that could help you.

Specialist lenders are more likely to accept and offer you a more flexible deal. Especially if you’ve faced illness, divorce, or other personal situations.

Lenders carry out affordability assessments. This is to check income and outgoings and assess your ability to meet your monthly payments. 

This will also assess what effect future changes to interest rates might have on your ability to repay.

A lender bases the amount they'll lend someone with bad credit on the same things as a standard mortgage.

This is based on your individual or joint income time times multiplied by an agreed number.

This number varies between lenders and is often up to 4.5. They'll also consider any debts or commitments you hold.

Use our mortgage calculator to see how much you could borrow, or get a mortgage agreement in principle with us if you’re ready to make an offer on a home.

You can get a shared ownership mortgage with bad credit, it’ll just be harder than it would be for someone with good credit.

Using a mortgage broker can help improve the process as they can advise you on the best lenders for bad credit mortgages. 

A broker can also guide you through creating a good mortgage application that lenders are more likely to approve.

Yes, you can still get a joint mortgage when you have bad credit.

Lenders are more likely to accept if only one applicant has bad credit. If both applicants have poor credit, you may struggle as lenders might not trust you can afford to make all your payments.

Your best approach is to be honest about your credit issues so that your mortgage advisor can help you find the right mortgage with the right lender.

Lenders will want to know the following:

• your relationship - are you married, cohabiting, or family?

• your single or joint names

• the ages of both applicants

• whether you’re first-time buyers, next-time buyers, or investors

• your employment status

• both applicants’ income

• if/how much outstanding credit you have

Remember that you’ll stand a better chance of getting a mortgage approved if you have a bigger deposit.

Credit reference agencies, such as Equifax or Experian, can calculate your credit score and assess whether it is excellent, good, fair, poor or very poor. 

Your credit score is based on your history of debt repayment, or lack thereof. You can have a low credit score if you owe money, are often late paying back debt, and have no history of borrowing. 

You could have bad credit if you have:

• made many late payments 

• missed payments

• declared bankruptcy

• not signed up for the electoral register

• a CCJ (County Court Judgement)

• been a victim of identity fraud