When you apply for a mortgage it can be daunting, especially if you have a less-than-perfect credit history. Many people believe that bad credit automatically disqualifies them from securing a mortgage, but this isn’t always the case. While it may be more challenging, there are options available, and with the right advice, you can navigate the process successfully.
In this article, we’ll cover the essentials of applying for a mortgage with bad credit in England and Wales, tips to improve your chances, and how Helen Ferneyhough Associates can support you in achieving your dream of homeownership.
What Does Bad Credit Mean for a Mortgage Application?
Bad credit generally refers to a history of missed payments, defaults, CCJs (County Court Judgments), or even bankruptcy. Lenders use your credit score and credit report to assess how likely you are to repay a mortgage.
If your credit score is low, lenders may:
• Offer you fewer mortgage options.
• Require a higher deposit (e.g., 15–20% instead of the usual 5–10%).
• Charge higher interest rates to offset the perceived risk.
Can You Still Get a Mortgage with Bad Credit?
Yes, it is possible to get a mortgage with bad credit, although it may require more work and specialist advice when you apply for a mortgage. Here are a few things to consider:
1. Specialist Lenders: Not all lenders are the same. Some specialise in offering mortgages to those with poor credit histories.
2. Deposit Size: A larger deposit can make you more appealing to lenders, as it reduces their risk.
3. Affordability Assessment: Lenders will look at your current financial situation, including income and expenditure, to ensure you can afford repayments.
4. Improve Your Credit: Steps such as paying down debt, avoiding new credit applications, and ensuring bills are paid on time can improve your credit score over time.
Tips to Improve Your Mortgage Approval Chances When you Apply For a Mortgage
1. Check Your Credit Report: Obtain a free copy of your credit report from agencies like Experian, Equifax, or TransUnion. Ensure all the information is accurate.
2. Save a Larger Deposit: A higher deposit can help reduce the impact of your credit history.
3. Avoid New Debt: Don’t take out new loans or credit cards during the mortgage application process.
4. Seek Professional Advice: A mortgage broker can identify lenders who are more likely to consider applicants with bad credit.
Why Choose Helen Ferneyhough Associates?
At Helen Ferneyhough Associates, we specialise in helping clients navigate the complexities of the mortgage market. Whether you have a spotless credit record or have faced financial challenges in the past, we’re here to support you.
What we offer:
• Expert Guidance – We work with a wide range of lenders, including those specialising in bad credit mortgages.
• Tailored Solutions – Every client’s situation is unique, and we pride ourselves on finding mortgage solutions that fit your needs.
• Ongoing Support – From initial application to completion, we’re with you every step of the way.
Take the First Step
Getting started is simple. Begin by reviewing your finances, checking your credit score, and consulting with a trusted mortgage broker. Helen Ferneyhough Associates has a proven track record of helping clients across England and Wales secure their dream homes.
Contact Helen Ferneyhough Associates today for personalised advice tailored to your situation.
Additional Resources
Stay informed about the Bank of England base rate, which influences mortgage interest rates, by visiting Bank of England Base Rate.
Important Notices:
There may be a fee for mortgage advice. The precise amount of the fee will depend upon your circumstances but will range from £195 to £1500, and this will be discussed and agreed with you at the earliest opportunity.
Your home may be repossessed if you do not keep up repayments on your mortgage.
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