Having bad credit doesn’t necessarily mean that you can’t get a mortgage. At Bluebell Mortgages, we work with you and your personal circumstances to find the best option with your current financial situation.
The first thing to note when applying for a mortgage with bad credit is that you are likely to pay higher interest rates for the mortgage you will be offered. It might also mean that you need to provide a larger deposit when applying for a mortgage, however these are hurdles we can help you overcome.
Bluebell Mortgages can help you to find the best option, and ensure that you can afford the mortgage to avoid further financial issues in the future.
A factor to remember when you have bad credit is that no lender is the same, and the things they are looking for when it comes to lending will be different for each application. Just because you were refused credit in the past, doesn’t mean every lender will refuse you credit moving forward.
Finding out your credit score is a great place to start, as this will give you a good indication as to how bad your credit rating may be, and whether it is even bad at all – you might find that with time spent on improving this, that you are no longer considered to have bad credit. Bluebell Mortgages expert advisors will be able to help you to understand your credit rating and explain the options available to you with your current rating.
In order to look your best to lenders, it’s important to demonstrate that you can manage your payments and budget accordingly, so if you’re looking to get a mortgage or remortgage, take a look over your accounts and see if there are changes you can make to help yourself be more desirable to a lender. This could be as simple as setting up your bills on a direct debit so there’s no chance a payment can go out late, and setting up regular payments for any credit cards or debts you may have.
The mortgage that you are likely to be offered is no different to any other mortgage, although as mentioned before, interest rates are likely to be higher and there could be a limit on how much you can borrow in total.
It could also be the case that you will have to put down a higher deposit on your property, and this could be a minimum of around 20-25% whereas ordinarily you may only need 10% or so.
The reason for these differences is that someone with bad credit is seen as a higher risk, but this doesn’t mean you cannot get a mortgage at all.
Bluebell Mortgages can help find the best option for your mortgage or remortgage, and even with bad credit, we will aim to find and recommend a solution that fits your budget and your individual needs.
We can help you to find a mortgage, even with a history of bad credit, contact our friendly team today for a free consultation.