Buying a home in today’s property market can often seem daunting and hopeless, especially for those with bad credit. But, there are many different options available when it comes to bad credit mortgages (otherwise known as adverse credit mortgages). It’s just a case of knowing where to look and how to go about finding the best mortgage deals and securing the product. Even if you have missed payments in the past and had issues with your credit score, you could still be able to secure mortgage deal. Bad credit mortgages work in the same way as a standard mortgage does. The amount of money that you borrow is repaid to your mortgage lender in monthly instalments with added interest.
In this blog, we are going to explore the different ways that can help you secure a bad credit mortgage. So, if you are one of many people looking to secure a deal but have a bad credit score, then keep on reading.
A simple, but effective way of improving your credit score is making small individual improvements to your financial life. But, start with things that you can do almost instantly like registering on the electoral roll and checking your credit file for any mistakes that might have occurred. Look for small things like a missed bill that you did in fact pay. This might not sound like much of a problem, but it does contribute to your overall credit score. Once you have actioned these small things, then you can move onto the ones that take a little more time, effort and personal motivation. This can include:
Although, mortgage lenders will take a very close look at your history and credit score when assessing your application, some may also determine your eligibility based on a few different factors. This can include, but is not limited to your employment status and income, your age, the size of the deposit you have saved, your personal outgoings and the type of property that you wish to buy.
When it comes to a mortgage deposit, the general rule of thumb is that the more you have saved, the better. However, saving for a deposit can seem like a rather daunting task, but it doesn’t have to be this way. All you need to have is a realistic plan in place to make saving for that deposit a reality. If you are thinking about buying a property and looking at different ways to save up a deposit, then consider adding the following things to your plan.
Choosing a mortgage broker that specialises in mortgages for those with bad credit can be a great place to start the process. They will be able to take all of your circumstances in consideration and find the mortgage lenders that are most likely to accept you before submitting your application. This is particularly important as each application that gets rejected will appear on your file and have a negative effect on your credit score.