Bad Credit Mortgages Explained
Adverse credit narrows your choice of lender rather than closing the door. Specialist lenders price for risk, and that price falls as the issue ages.
What lenders look at
Missed payments, defaults, county court judgments, IVAs and bankruptcies, weighted by how recent and how large they are. A default from four years ago carries far less weight than one from last spring.
Improving your position
Check all three credit files for errors, register on the electoral roll, keep utilisation low and avoid new credit applications in the six months before you apply.
Deposit and rate
A larger deposit is the most effective lever. Fifteen to twenty five per cent opens far more specialist products and reduces the rate premium.
Use a broker
Adverse credit lending is a broker market. Direct applications to high street lenders usually produce a decline that then sits on your file.
Planning a move?
BlueSky Removals gives fixed written prices after a free video or home survey. Call 0800 090 3125 or request a quote online.