Adverse credit mortgages or bad credit mortgages work in the same way as regular mortgages. The only difference is that they attract higher interest rates, and you get a lower limit on the amount you can borrow. Some lenders also ask you for a larger deposit such as 25% of the property value, as opposed to regular mortgages that can attract a lower deposit.
Bad credit mortgages attract higher interest rates and higher deposits because you are considered to be a high-risk lender. In the mortgage market, the higher the credit score, often the lower the deposit you can pay and the lower the interest rates. Therefore, people with bad credit get higher rates. It is advisable to consider the interest rate when comparing lenders to find one with the best rates for bad credit mortgages and one which fits your personal circumstances.Contact us
Ensure you meet your regular payments like utility bills and credit card payments. This shows your lender that you are working towards repairing your bad credit and that you can be relied on to make your payments.
Reduce your spending as much as you can. Keep your monthly spending consistent and within your means. It is ideal to have money left over each month.
Ensure you let the lender know if you have an explanation for your bad credit. This can be an illness that left you incapacitated for a while or an unemployed period.
Only go for property you can comfortably pay for month to month. This will ensure you do not damage your credit score again in the future.
If you are looking for financing options, people with bad credit can get mortgages. Numerous lenders deal in mortgages made primarily for people with bad credit.
Investing in a property can even be an effective way of repairing your credit score, and a lucrative supplementary income under the right circumstances.
We have numerous lenders available that specialise in catering for people that may have had a hiccup or two on their credit file.
Everyone is unique, and just because your circumstances may be different to others, doesn’t mean you should be hindered when obtaining a mortgage.
Any of these can cause bad credit: Low Credit Score; Missed payments on unsecured credit such as loans or mobile phone contracts; Defaults and County Court Judgements (CCJs); Debt Management Plans (DMP); Secured Loan Arrears (missed mortgage payments); Individual Voluntary Arrangement (IVA) and Bankruptcy
Getting a mortgage with less than perfect credit is possible and quite common today, although you may end up paying higher interest rates and need to provide a slightly larger deposit. There are mortgages designed specifically for people with poor credit, and some lenders specialise in offering these. These are known by various names including bad credit, adverse or sub-prime mortgages. To find the best deal you are best to use a broker who can explore a wide-range of options for you.
More and more lenders are considering approving mortgages for people with CCJ’s. Each lender has a varied approach to treating CCJ applications and what they decide as acceptable. As with an ordinary mortgage application, other criteria come into play such as credit history, property type, affordability etc. All of these variables can make for a tricky process in choosing an appropriate lender and progressing an application. Remove the hassle and contact us today to see how we can help.
If you have a history of one or more late payments it is still possible to apply for a mortgage. Lenders look at lots of things including how long ago the missed payment was, what product the missed payment was in connection with, and also if the debt is still outstanding. Fortunately, there are lenders out there who still give competitive mortgages to people with late payment histories, some even at competitive rates with minimal deposits.
Get in touch! Write us an email, give us a call, or fill in one of our forms and we will get back in contact at a time convenient for you.
During the course of dealing with us, we will ask you to provide us with detailed personal information relating to your existing circumstances, your financial situation and, in some cases, your health and family health history (Your Personal Data). This document is important as it allows us to explain to you what we will need to do with Your Personal Data, and the various rights you have in relation to Your Personal Data. The Data Protection Officer for DNA Financial Solutions is Drew Turner. We are registered with the Information Commissioners Office (ZA239120)
Your Personal Data means any information that describes or relates to your personal circumstances. Your Personal Data may identify you directly, for example your name, address, date of birth, national insurance number. Your Personal Data may also identify you indirectly, for example, your employment situation, your physical and mental health history, or any other information that could be associated with your cultural or social identity. In the context of providing you with assistance in relation to your Mortgage and Protection requirements Your Personal Data may include:
When we speak with you about your mortgage requirements, we do so on the basis that both parties are entering a contract for the supply of services. In order to perform that contract, and to arrange the products you require, we have the right to use Your Personal Data for the purposes detailed below. Alternatively, either in the course of initial discussions with you or when the contract between us has come to an end for whatever reason, we have the right to use Your Personal Data provided it is in our legitimate business interest to do so and your rights are not affected. For example, we may need to respond to requests from mortgage lenders, insurance providers and our Compliance Service Provider relating to the advice we have given to you, or to make contact with you to seek feedback on the service you received. On occasion, we will use Your Personal Data for contractual responsibilities we may owe our regulator, The Financial Conduct Authority, or for wider compliance with any legal or regulatory obligation to which we might be subject. In such circumstances, we would be processing Your Personal Data in order to meet a legal, compliance or other regulatory obligation to which we are subject.
We will collect and record Your Personal Data from a variety of sources, but mainly directly from you. You will usually provide information during the course of our initial meetings or conversations with you to establish your circumstances and needs and preferences in relation to mortgages You will provide information to us verbally and in writing, including email. We may also obtain some information from third parties, for example, credit checks, information from your employer, and searches of information in the public domain such as the voters roll. If we use technology solutions to assist in the collection of Your Personal Data for example software that is able to verify your credit status. We will only do this if we have consent from you for us or our nominated processor to access your information in this manner. With regards to electronic ID checks we would not require your consent but will inform you of how such software operates and the purpose for which it is used.
In the course of handling Your Personal Data, we will:
From time to time Your Personal Data will be shared with:
In each case, Your Personal Data will only be shared for the purposes set out in this Customer Privacy Notice, i.e. to progress your mortgage enquiry and to provide you with our professional services. Please note that this sharing of Your Personal Data does not entitle such third parties to send you marketing or promotional messages: it is shared to ensure we can adequately fulfil our responsibilities to you, and as otherwise set out in this Customer Privacy Notice. We do not envisage that the performance by us of our service will involve Your Personal Data being transferred outside of the European Economic Area.
Your privacy is important to us and we will keep Your Personal Data secure in accordance with our legal responsibilities. We will take reasonable steps to safeguard Your Personal Data against it being accessed unlawfully or maliciously by a third party. We also expect you to take reasonable steps to safeguard your own privacy when transferring information to us, such as not sending confidential information over unprotected email, ensuring email attachments are password protected or encrypted and only using secure methods of postage when original documentation is being sent to us. Your Personal Data will be retained by us either electronically or in paper format for a minimum of six years, or in instances whereby we have legal right to such information we will retain records indefinitely.
You have the right to request a copy of the personal information that we hold about you, its origin and any recipients of it as well as the purpose of any data processing carried out.