When you have bad credit, you might find in very difficult to get a mortgage from the High Street. What you need is a bad credit broker with the contacts to help you whatever your credit score.
What do you Mean by Bad Credit?
If you have a low credit score because you have had money problems, or because you don’t have any credit.
What Gives you a Bad Credit Score?
If you have been to court because of a debt and a county court judgment has been awarded against you. This will stay on your credit file for 6 years. It will lose you 250 points or more. That means if you had a fair score you drop down to a poor score. It is the same with bankruptcy. Again, this stays on your file for 6 years and you will lose a significant number of points. Defaulting on a debt is also bad for your score
Other reasons which will see your credit score drop are missed or late payments on credit agreements, paying your debts through a DMS or an IVA. No credit history isn’t good either.
Will I get a Mortgage with Bad Credit?
As long as your bad debt isn’t too serious or recent a bad debt mortgage broker will be able to help you. Don’t expect to get a 100% mortgage though. Bad credit mortgages usually require a good deposit or a guarantor. Your broker will find you the best deal in line with your circumstances.
How will a Bad Credit Mortgage Broker Advise Me to Improve My Credit Score?
If a bad credit mortgage broker can see that it’s unlikely you’ll get a mortgage at the moment, he will advise you to improve your credit score. You can do this by doing a few simple things Firstly, put yourself on the electoral register. Secondly start to pay your credit cards and loans regularly, without being late or missing payments.
If you don’t have a credit card, get one. Only use it to pay a bill you already have to pay. For example, you could use it to pay your car insurance. Pay back the card each month on time. Don’t be tempted to spend, spend, spend. Then you’ll only be paying back the minimum and this isn’t any good for building up your score.
Don’t apply for more than one loan at any one time. Leave a good few months gap between applications. Lenders will see these applications on your credit file. If there are a few in a short space of time it is an indication that you don’t have enough money to pay a mortgage.
If there is a mortgage for you out there, you can be sure your bad credit broker will find it. Give them your details and let them search for you.