Applying for a mortgage with poor credit

When assessing whether or not to approve a mortgage, a lender will look to your credit score to determine whether you qualify along with how much you could stand to borrow.

The higher your score, the better your chances of being approved, while low or bad credit scores will increase the chances of your application being rejected. If you have ever missed a payment on personal loan, credit card or mortgage, your credit score will have been negatively impacted. Similarly, being declared bankrupt or receiving a county court judgment (CCJ) for debt repayment can also leave your credit file in poor standing.

Having a damaged credit score can make it harder to successfully qualify for a mortgage, but there are some things you can do to repair your score before you apply. It is also still possible to apply with a low credit score, and at My Mortgage Force, we can give you the help you need to improve your chances of obtaining financing.

I have a poor credit score – what can I do?

Your first steps should be to check your credit score to see how badly it has been damaged. There’s also the chance that there has been a mistake made, and if this is the case, you can apply to have this fixed and therefore improve your credit rating.

You can take steps to improve your credit rating, such as paying all of your current bills in full by the due date. Closing any old credit cards or accounts that you no longer use can also help, as can ensuring that you are on the electoral roll.

If you are unable to repair your credit score before you are ready to apply, there are mortgages known as sub-prime mortgages that are specifically designed for people with poor credit; with these, you should expect to pay higher rates of interest and charges, but the good news is that keeping up with your mortgage payments will improve or “repair” your credit score, so you may be able to remortgage at a lower rate later on. You should also be prepared to pay a higher deposit, and provide proof of regular income depending on the lender’s requirements. Working with a mortgage broker to apply for one of these will better your chances of getting onto the property ladder.

Get help from the mortgage professionals

Don’t give up hope – it is still possible to qualify for a mortgage even if you have a poor credit rating, and we can help.

We can connect you with lenders that offer sub-prime mortgages, and also provide guidance with your application to ensure that you are doing everything possible to make yourself an attractive candidate in a lender’s eyes. To learn more about getting a mortgage with a bad credit score, contact us at My Mortgage Force today.