Getting a Mortgage with Bad Credit is it possible?

If you need a mortgage with bad credit then you might find it difficult or at the very least quite an expensive proposition. However it should still be possible depending on how bad your credit really is.

If you have bad credit then your best bet is to use a broker who has access to a large number of different mortgage providers and lenders.

An organisation such as a comparison website can help you compare a large number of mortgage providers and you may get the approval you are seeking. They will typically have access to a large number of lenders and some of those lenders will specialise in people with bad credit and be willing to lend to you.

It is important to note that some brokers will charge a fee so it is important to check beforehand and to shop around to make sure you are getting the best deal for your situation.

Getting a Mortgage with Bad Credit

The main thing to remember when applying for a mortgage with bad credit is the cost. It will be a lot more expensive than if you had a good credit score. If you are in a lot of debt and that is also why you have bad credit then it is likely you will struggle to get approval, especially if that debt is recent and unpaid. It is probably not wise to take on a mortgage if that applies to you. Your efforts would be better spent sorting out the debt problem.

There is no harm in trying an application though and a comparison site would be a good idea due to the number of lenders they usually have. Just remember that an application will show on your credit report and too many can cause you problems, especially if they are all in a short timeframe.

The benefit of using a comparison site is that by comparing such a large number of mortgage providers and lenders, your chances of approval should be higher as they will typically apply to organisations more likely to approve you.

Check your Credit Report

It might also be worth checking your credit report to see why it is so bad, as there could be things on there that there shouldn’t be.  You can check your credit report for free with with an organisation such as ClearScore or Credit Expert. However there are many places who offer this service now so it might be worth a quick search on the web to find one or read my article on where to get a free credit report which lists the organisations I use myself.

I have written quite a lot about credit reports on this site. Below are some of the more relevant posts: –

The key here is to make sure the data being reported on your credit report is correct. For example there could errors such as: –

• Incorrect default dates.
• Defaults not marked as satisfied when they have been fully repaid.
• Incorrect outstanding balances.
• Accounts being reported that shouldn’t be.

The above are just some examples of incorrect information and ones that I have experienced myself.

Talk to a Mortgage Advisor

Talking to a mortgage advisor is also a good idea and something to think about. You can explain your situation to them and they can then provide personalised advice to you based on your situation.

They are no strangers to customers with Bad Credit and will typically have a good understanding of the market and what they can do to help you get your Mortgage.

If you are in debt though, I would wait until you have paid that debt back before looking to buy a home. However if you are set on getting a mortgage with bad credit then as I mention above, give a comparison site a try and make sure you shop around to get the best deal.