How To Get A Mortgage If Your Credit Is Poor

With the burden of a bad credit history, it can seem an impossible dream to buy your own home. However, do not despair. These tips can improve your likelihood of being accepted for a mortgage. 

Improve Your Credit Score

If you have a bad credit score, you are not alone. One in three Britons is regularly rejected for credit due to poor scores.

Lenders will analyse your credit worthiness before granting a mortgage, so any outstanding debts, defaults or missed payments can affect your application. 

A credit-builder credit card is an effective tool in helping to increase your credit score. It will help establish your history of utilising a credit card responsibly, and you can procure one even if your score is weak. 

However, every time you submit an application for credit, your credit score will fall, as it is recorded on your file. Repeated applications will not be viewed favourably by lenders, so plan applications carefully. Avoid making applications that could be rejected, and do not make repeated applications within six months. 

Strengthen Your Application

The more recent your bad credit history, the more your lender could be cautious. Often it is best to wait until you have two years of scheduled repayments with good credit management before submitting your mortgage application. 

For serious blights, such as county court judgements, it may be best to wait at least three years. 

Adding a guarantor to your mortgage application, who will offer their home as security against the mortgage, can bolster your application.

Find the Right Lender

There are specialist lenders on the mortgage market that have in-depth knowledge of applications from people who have bad credit. The interest will probably be higher, but the chances of being accepted increase. For property advice in Gloucestershire, contact Gloucester Estate Agents.

A mortgage broker can help you find a mortgage deal that suits your circumstances. A broker will know which lender could potentially accept your application and what to do to strengthen your chances. TGRES Merging with Alex Clark Glos can offer useful advice on buying property.

If you want to offer an explanation for your bad credit, it could be beneficial to find a bank that offers manual under-writing, which means your application will be assessed by a person rather than by computer.

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