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The recent economic downturn may have ended but the effects are still being felt by thousands of people trapped in difficult financial circumstances. Fortunately, even with a poor credit history you might still be able to find a mortgage, especially if you talk to a mortgage specialist like Bower.
But do remember that if you do have a poor credit history, you may pay higher than average interest rates and you’ll need to have a larger deposit than you would for a residential mortgage.
This is because lenders often restrict the amount they are willing to lend to minimise their risk. The maximum loan to value is likely to be no more than 85% of the property value.
A number of things can affect your credit rating, such as the loss of employment or a breakdown in a relationship that’s led to a problem with your finances. .
More reasons include:
Late or missing credit card, loan or mortgage payments
Being in some kind of debt repayment arrangement or declared bankrupt
Having County Court Judgements
If any of the above apply to you, then you’ll require a copy of your credit report before making any mortgage applications. You may also need your report if you apply for any further credit such as a loan or credit card.
If you don’t have your credit report yet, you can apply to get yours here [Experian link].
Making applications before you have a chance to improve your credit score will show up on your record and may harm your rating further.
Your Bower specialist will discuss all your options with you, and will fully explain how our service could improve your chances of being accepted.
At Bower, we know which big name brands and smaller independent building societies offer more flexible application processes. In fact, we work with several lenders who do not credit score at all.
We’ll find out who is more likely to look at applications on a case-by-case basis, rather than a computer making a decision without taking into account your improved circumstances.
Just get in touch with the mortgage experts at Bower to find out more and see how we can help get the right mortgage for you