Guaranteed Mortgage Approval with Bad Credit

There are various factors that can negatively impact your credit profile and result in a bad or poor credit rating. Most commonly, bad credit is associated with making late payments or missing payments on credit cards, mortgages, other personal loans, or even store cards or utility bills.

Other factors that can affect your credit score include:

• Having little credit history - if you haven’t used credit, it’s harder to prove that you can be a responsible borrower and make repayments. It’s likely you’ll have more on your credit profile than you first thought, so it’s worth checking with credit reference agencies like Experian to get an idea of your overall credit record
• Having a short credit history - this can also negatively impact your score as it’s harder to prove you have a strong track record of reliable financial management. Your credit record shows the last 6 years of your credit activity
• Not being on the electoral register - the simple act of joining the electoral register proves where you live and is important for your credit score
• Legal action resulting in you being ordered to pay money to another person -commonly a County Court Judgement (CCJ)
• High credit utilisation - your credit utilisation is a measure of how much of your available credit you’re using. If you’re consistently maxing out your available credit - e.g. using 100% of your overdraft and credit card allowances, this will be viewed negatively by lenders. Ideally, your credit utilisation should be below 30%

Bad credit lenders often have more lenient criteria than high street lenders when it comes to credit and a few are even able to take a more personal, bespoke approach and look at different aspects of an individual’s financial situation.

In some circumstances, some will be assess your eligibility on a case-by-case basis and look at various factors, including:

• Proof of income and outgoings, including bank statements and tax returns
• An assessment of your income against your expenditure
• The reasons why the bad credit occurred in the first place - e.g. was it due to an issue of poor health, a family death or divorce that caused the adverse credit event?
• Evidence that positive steps have been or are being taken to resolve the bad credit issue
• Different options available to you that might help improve your current financial situation

As with most services these days, a lot of discussion and paperwork can be done virtually, over the phone or online. Even if your situation is complex, brokers and lenders will be able to work with you over the phone and online and can even accept documents and applications via online portals or sent via email.

As adverse credit mortgages tend to be more complex, it’s best (and sometimes only possible) to go through an intermediary, like John Charcol, who offer specialist bad credit mortgage advice and can work with the right lenders to best support you through the application process.

As an independent mortgage broker, we have lots of experience in helping people with bad credit secure mortgage loans. We know all about bad credit events and which lender to approach depending on your unique circumstances. We’re whole of market which means we have access to specialist adverse credit lenders who will only operate through intermediaries.

If you’re in a more unusual or complex situation, like having poor credit with a shared ownership scheme, bad credit mortgage brokers can be especially helpful in advising you on what options may or may not be open to you.

An expert adverse credit mortgage broker, like John Charcol, can support you in many ways, including:

• Providing expert advice on diverse bad credit issues and mortgage needs and how to navigate the adverse credit mortgage market
• Understanding lender criteria and helping you find the best lenders for your situation
• Providing access to special bad credit mortgage loans that offer the best value for your circumstances
• Supporting you through the entire application and mortgaging process
• Suggesting ways to strengthen your application and rebuild your credit score
• Helping you to understand and answer lender queries and requests

It’s always wise to seek advice and engage a bad credit mortgage broker before you start applying for mortgages with poor credit. If you pick a mortgage lender that’s likely to decline your application or you make lots of speculative mortgage applications you could accidentally end up negatively affecting your credit rating even further.

As a specialist mortgage broker, our team at John Charcol are adverse credit experts. We’ll ask the right questions to understand your bad credit history and use our expertise to help you access the best deals on the market with the right lenders who are most likely to consider you for a mortgage. With our help, bad credit needn’t mean missing out on mortgage approval or accepting a poor value mortgage offer. Contact us today on 0330 433 2927 to learn more.