Can I get a mortgage with poor credit
By Taylor Brown
20th September 2023

Getting a mortgage is tough enough, but it’s even harder when you have poor credit. You might think owning a home is impossible for you, but don’t lose hope. This article is here to help. We’ll explain how you can still get a mortgage, even if your credit isn’t great. Whether you’re finding it hard to get approved or you’re thinking about borrowing more to sort out your debts, this guide will give you tips to make things easier.

How Poor Credit Affects Mortgages

When we talk about poor or adverse credit, we’re referring to a history of financial behaviors that lenders view as risky. This could include missed payments, defaults, or even more serious issues like bankruptcy. Such a credit history can make lenders hesitant to approve your mortgage application, often resulting in either outright rejection or less favourable terms, such as higher interest rates.

However, it’s crucial to understand that poor credit doesn’t mean a closed door. While mainstream lenders might be less willing to take a chance on you, there are specialist lenders who consider other factors beyond just your credit score. They look at your overall financial situation, your current income, and your ability to make future payments.

The key takeaway here is that poor or adverse credit is a hurdle, not a blockade. With the right approach and guidance, it’s possible to secure a mortgage that suits your needs.

Does Poor Credit Rule Out a Mortgage?

When it comes to poor or adverse credit, there’s no shortage of myths that can make the mortgage process seem even more intimidating. Here are some common misconceptions we’d like to clear up –

It’s impossible to get a mortgage with poor credit

One of the most damaging myths is that poor credit completely disqualifies you from getting a mortgage. While it’s true that your options may be limited, there are specialist lenders willing to consider your application.

You’ll always pay sky-high interest rates

While you may face higher interest rates compared to someone with a stellar credit history, it’s not given. Various factors, such as your current  income and the size of your deposit, can influence the rate you’ve been offered.

You must have a large deposit

A bigger deposit can indeed make your application more appealing to lenders, but it’s not a strict requirement. Some lenders are willing to consider smaller deposits, especially if other aspects of your financial situation are strong.

Your credit score is the only factor

Your credit score is important, but it’s not the be all and end all. Lenders look at a range of factors, including your employment status, income, and even your day to day spending habits.

By debunking these myths, we hope to remove some of the stress and uncertainty surrounding the mortgage process for those with poor credit.

Steps to Improve Your Chances

If you have poor credit or adverse credit, you might feel stuck. But there are things you can do to improve your chances of getting a mortgage. Here are some practical steps –

Check Your Credit Report

The first thing to do is know where you stand. Get a copy of your credit report and check it for any errors. If you find mistakes, get them fixed right away.

Think About Debt Consolidation

If you have multiple debts, it might be a good idea to combine them into one. This can make it easier to manage your monthly payments and could improve your credit score.

Be ready for Higher Rates

If your credit isn’t great, you might have to pay a higher interest rate. But remember, this isn’t forever. You can always remortgage later when your credit improves.

Talk to an Expert

Last but not least, get professional advice. An expert can guide you through the process and help you find a mortgage that fits your needs.

The Mortgage Stop’s Approach

If you’re facing challenges due to poor or adverse credit, you’re not alone. At The Mortgage Stop, we’re here to help. With over 20 years of experience, we know how to find mortgage options that work for you. Our team takes the time to understand your unique situation and offer tailored advice.

What makes us different? We believe in building trust. That’s why our first consultation is always free. Our 5 star rating shows that our clients value our service and trust us to guide them.

Conclusion

Securing a mortgage with poor or adverse credit may seem like a steep mountain to climb, but it’s far from impossible. By taking practical steps, seeking expert advice, and debunking common myths, you can improve your chances significantly. At The Mortgage Stop, we’re here to offer that expert guidance, backed by over two decades of experience and a 5 star rating. With a free initial consultation and “our mortgage advice fee guarantee”, you have nothing to lose and a home to gain.

So, if you’re dealing with credit challenges and are in need of mortgage, don’t hesitate to reach out for professional help. Your dream of homeownership could be closer than you think.

Think carefully before securing other debts against your home.

Your home may be repossessed if you do not keep up repayments on your mortgage

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