The short answer is yes. But, it isn’t always easy to find a lender. The first thing you should do is consult a mortgage broker. They will give you advice about mortgages, tell you what paperwork you need and us their contacts to find the best deal for your circumstances.
What Your Mortgage Broker Will Do
Firstly, your broker will have a look at your financial situation. You will ned a good deposit. It’s unlikely that you’ll be offered a mortgage if you haven’t got much money to put down. He’ll also look at your credit record. This is to find out how you have handled your money in the past and if your financial situation has improved since your bad credit.
Your Credit Score
One of the things they will talk to you about is your credit history. Everybody who has credit in the UK has a credit file. It is kept with a credit agency. There are three main agencies. They are Experian, Callcredit and Equifax.
A credit report will have details of any credit agreements you have, such as loans or credit cards. It will also contain your current address and any of your previous addresses.
There will be details of anyone else you share credit with, like a partner or flat mate. The file also has public records. These can be seen by anyone who has your report. It will show details of any County Court Judgments or bankruptcy proceedings.
The report will basically give a lender an overview of your bad credit. They will look to see if you have any late or missed payments on loans or credit cards. They will check the public record for CCJ’s and Bankruptcy.
Finding the Right Deal
Next, your broker will use their contacts to find lenders who will give mortgages with bad credit. They will explain your mortgage options and the interest rates. Once a mortgage has been found that suits you, you can start to get the paperwork together for the application.
You will need to provide proof of your name and address. You’ll also be asked for wage slips and bank statements. Your broker will give you a list of the documents you need to produce. They will then fill out the application form for you and present it to the lender with your documents. If you are refused the first time round, your broker will then try another lender.