Bad Credit Mortgage Brokers

If you have adverse credit, you might still be able to get a mortgage through normal channels, but it largely depends on how recent and how serious the bad credit event was.

Most lenders are likely to consider you a higher risk and reject you for a mortgage if a credit event has happened recently or was serious, for example, if you’ve defaulted on several credit card or mortgage repayments in the last 12 months.

If you have bad credit, most high street banks are likely to consider you as too high a risk, in which case you'll need to seek alternative mortgage options from specialist lenders for bad credit applicants. This is where John Charcol can help.

At John Charcol, we have access to subprime/adverse credit lenders who offer mortgages for people who want to buy a house but have poor or bad credit. These mortgages are known as bad credit mortgages, subprime mortgages, or adverse credit mortgages.

Many of these specialist lenders use a manual underwriting process and look at applicants on a case-by-case basis. Although this means the application process is longer, it also provides a more rounded view of your finances and can help provide the additional assurance needed to help secure a mortgage.

Although you’re more likely to be approved for this type of mortgage, as you’ll still be seen as higher risk, bad credit mortgages tend to require a higher mortgage deposit, typically 15% compared to 5% - 10% on a normal mortgage. You’re also likely to see higher fees and interest rates on this type of mortgage.

You might have also heard of guarantor mortgages, where another person, usually a parent or relative, agrees to act as guarantor and pay your mortgage repayments if you aren’t able to. In the past, this type of mortgage was common for borrowers with bad credit as a way of providing extra assurance to mortgage lenders, but these have now largely been replaced with better specialist bad credit mortgages and deals that don’t require you to have a guarantor to be approved.

Different bad credit mortgage lenders have different criteria and an experienced adverse credit mortgage broker like John Charcol can help you navigate the different lending requirements.

Where a fairly modest credit issue is involved, such as missing low value payments on a mobile phone bill or a store card, most bad credit mortgage lenders won’t see this as having too much of an impact on your ability to repay a mortgage and will be happy to accept you, assuming you meet their other criteria. But, if you have a more serious credit issue like defaulting on high value mortgage payments, bankruptcy, or repossession, then you’ll be much more limited in the lenders that are likely to approve your application. This is one of the areas where we can help you understand what bad credit issues different lenders are likely to accept or not.

The types of credit problems individuals face can be hugely varied. This is why it’s best to speak to a bad credit mortgage broker that can offer specialist advice across many different issues that can negatively impact your credit rating and what mortgage options are available to you.

As experts in poor/bad credit mortgages, we can help identify and find mortgage solutions for credit issues like:

• Low credit scores or little credit history
• Missed or defaulted mortgage payments
• Late payments on credit cards, or other types of personal loans
• CCJs on your record
• Existing overdraft and credit card debts
• Bankruptcy and repossession
• Bad credit with shared ownership schemes

When it comes to remortgaging with poor credit, seeking advice from a bad credit mortgage broker is a good idea to make sure you’re aware of all your options and can choose a path that’s right for you.

At John Charcol, we can help you with remortgaging credit issues, like:

• Remortgaging to pay off debts or debt consolidation
• Mortgage arrears
• Late or default payments on credit cards or other loans
• CCJs on your record
• Remortgaging with an IVA (individual voluntary arrangement) or on a DMP (debt management plan)
• Bankruptcy and repossession

At John Charcol, we’re specialist mortgage brokers and experts in bad credit mortgages. If you have bad credit, you’ll most likely need a specialist adverse credit lender that typically only uses intermediaries like us and won’t offer bad credit mortgage deals directly to the public.

As professional bad credit mortgage brokers, we’ll take the time to understand your situation and the circumstances that led to the adverse period in your credit history and use our experience to align you with the right mortgage lenders. Whatever your credit history, we can help guide you through the mortgage process and find the best deals on the market for your situation. Call us on 0330 433 2927 to get started.