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The critical piece of the home-owning puzzle is usually finding the right mortgage, especially if you have a council house and are purchasing the home as part of a right to buy scheme. Then your question may be whether I can buy my council house with bad credit. It is definitely possible to buy a council house with bad credit, provided that you source the right kind of mortgage. There is no reason why a couple of mistakes in the past should stop anyone from taking advantage of the right to buy scheme and securing their home.

The Government’s right to buy scheme was launched in 1980 and it was designed so that council tenants could buy their rented home at an affordable price. Changes made since 2015 have made this scheme even more attractive and accessible and it's now even easier to buy council house with bad credit. There is now a bad credit right to buy mortgage available for tenants who have been renting their home for at least three years, and the price advantage in doing so can be many tens of thousands of pounds. 

Getting a right to buy mortgage with bad credit 

A number of mortgage operators are now offering lending schemes to those who wish to buy their council property. Of course, many people continue to ask themselves can I buy my council house with bad credit and this is an issue that must be addressed. First of all you must identify whether you have bad credit. If you have failed to pay a bill or repay a debt or had a County Court Judgment made against you, then this could have a negative impact on your credit score and mean you need to investigate finding a right to buy mortgage for those with poor credit. 

Other drivers behind a low credit score may include having to register as being bankrupt, or being late or failing to pay instalments on credit cards. If you have a history of missing payments on credit card bills then this may mean you have to look at a right to buy mortgage that will accommodate a poor credit rating.

Overdrawing your bank account, or failing to pay off loans are among the obvious circumstances that may lead to you having to find a right to buy mortgage with bad credit but there are other situations that can lead to low credit scores too. These include a variety of forms of credit, such as contracts for mobile phones or paying for utilities and broadband. Even neglecting to pay a gym membership regularly can limit your choice in finding a right to buy mortgage.

In thinking about your credit score, you need to take into account factors such as the length of your credit history, the number of times your credit history has been searched and what types of credit arrangements you have had in the past. Also important is the amount of debt that you are presently carrying and your history of making payments to settle debt and credit arrears. It is important to be honest when assessing the situation, but there is no need to despair and it is should be possible to buy council house with bad credit.

Taking action

If you need more data about the state of your credit score, it may be worth contacting one of the credit agencies. Credit and mortgage providers can approach these agencies for information on credit scores. If you are concerned about your credit rating and whether you may need to buy council house with bad credit, then it would be a good idea to use at least one of the major credit agencies to see your score and the factors affecting it. 

The names of the three main agencies that supply credit references are Callcredit, Equifax and Experian, each of which have informative websites.

If you have obtained your credit data and it indicates what is known as adverse information, then the first thing to do is to verify that this data is in fact accurate. Sometimes institutions make mistakes and if any information on your credit history is not correct, then you are perfectly entitled to have this changed to reflect the true state of affairs. It is possible that a payment was not made due to factors beyond your control and it could be helpful to have that information added, along with the circumstances, where appropriate.

It can also be helpful to tidy up your credit rating by eliminating distracting credit sources, such as old cards, that you no longer use. Avoiding making a number of applications for credit at the same time can also be helpful, as is adding your name on the electoral register. If you really want to repair your credit rating then you can investigate doing this. The positive thing to remember is that the more time that passes without new adverse credit incidents, the better your credit reference will be. So if the bad credit rating was a result of some youthful indiscretions, then being sensible in your adulthood could go a long way to eliminating most of the negative effects on your rating and the likelihood of getting a mortgage. 

Mortgage providers look at many factors when considering mortgage applications, including credit histories and any bankruptcies. The good news is that events such as bankruptcies remain on your records for 6 years, but become less important as time goes on, provided that fresh bankruptcies and loan defaults do not occur. 

There are mortgage lenders who want to help when it comes to obtaining a right to buy mortgage with bad credit. It is important to remain positive and tell yourself that I can buy my council house with bad credit. Even when you have been turned away by banks on the high street or by the major building societies, there are other options. 

Finding a mortgage lender with plenty of experience in dealing with securing a bad credit right to buy mortgage could be the critical first step in taking charge of buying your home and securing your future. Don’t allow the mistakes of the past to affect your home security. Find a mortgage lender who specialises in buyers with patchy credit ratings and allow them to give you the help that you need.