How can I get a mortgage with bad credit?

Getting a mortgage can be a confusing, stressful process, but even more so if you have bad credit. If you are wondering, ‘how can I get a mortgage with bad credit?’, then you should start by taking steps to improve your credit score, although how you do this will depend on your financial situation, of course. While improving your credit score does not guarantee getting a mortgage, it is still a positive step to take for overall financial health.

find me a mortgage

What is bad credit?

Bad credit is when a person does not pay their bills on time frequently or does not pay back any debts that they owe. Bad credit impacts your credit score, which is the history of all your credit decisions in the past, both positive and negative. Having bad credit and a low credit score can affect your ability to obtain future credit, like mortgages or loans. Banks and lenders see people with a low credit score as less trustworthy and less likely to pay back debts, so it is essential that you check your credit score, and if it is low, take steps to fix it. Outlined below are some tips that could help you improve your credit score and get a mortgage even with bad credit.

Improve your credit score

The best way to get a mortgage with bad credit is to improve your credit score and try to have good credit in the future. Of course, improving your credit score does not guarantee lenders will give you a mortgage, but it certainly is a positive step in the right direction.

How can you improve your credit score?

Get on the electoral roll

Registering to vote at your current address can improve your credit score, which will give you a better chance of getting a mortgage. If you move around a lot, this can impact your credit score, and the longer you stay at a property, the better your credit score will be. Although, of course, this is also dependent upon other factors too. You can register to vote by going on the relevant government website for you, entering your details and clicking submit. It is easy and will go towards increasing your credit score.

Pay off debts and bills on time

One of the best ways to improve your credit score is to pay off any debts and bills on time. Make sure you pay your overdraft fees, direct debits and credit card payments on the due date rather than after. Having a good credit score is based on meeting all your credit payments, so prove to mortgage providers you can pay them back on time to be considered. Spending money on a credit card and paying it back on time can help to build a credit history, but only do this if you have no pre-existing debt and are confident you can pay it back on time. There is no point in getting into debt to try and improve your credit history.

Check Affordability

There is plenty of information available on how to improve your credit score online. Of course, you should consult with your bank or other lenders directly, but do a bit of your own research. This also shows lenders that you are taking action and want to improve, which will help them believe you are reliable and will pay a mortgage back on time.

Other ways you may be able to get a mortgage with bad credit

Be honest

Do not lie to mortgage providers about your credit history, as extensive checks are run when you apply for a mortgage, and these will be uncovered. It is likely that you will lose any chance of a mortgage if you lie, as this looks like you are covering up. Even if you are nervous or think your bad credit will affect your application, the best thing to do is to be honest about it. A mortgage broker will try to work with you, and it is imperative you let them know your personal circumstances so they can do this to the best of their ability. A mortgage broker should not be judgemental and will have seen it all before. Get in touch with WIS mortgages today to start the process.

Consider connected debts

Other people’s bad credit and bad financial decisions can affect your credit. If you have accounts connected to a partner who is in debt, this can affect your credit rating. If you are a joint account holder for an account an additional holder has run up debt on, you could be liable. Check today if you have any joint accounts or joint debts and if you can separate yourself from the other party. You may still be liable for some debts, and always check this, but the sooner you do this, the sooner you can improve your own credit without someone else pulling it down with theirs.

How can I get a mortgage with bad credit?

If you have taken some of the steps above to improve your credit rating, and want to find out if you can get a mortgage with bad credit, you should discuss this with a mortgage broker, like the ones at WIS mortgages. Our advisors can discuss your options, although there is no guarantee you will get a mortgage, even if you have tried to improve your credit rating.

Contact Us

If you have bad credit and would like a mortgage, it can be helpful to consult a specialist mortgage broker, although there is no guarantee you can get a mortgage. Find out more about the role of mortgage brokers here. Find out if you can afford a mortgage with our affordability calculator. Simply enter your details to move forward with the mortgage process today. If you are looking for other types of mortgages, have a look at our offerings here. We are an intermediary broker who can discuss a range of products, including mortgages with you.

As a mortgage is secured against your home/property, it may be repossessed if you do not keep up with the mortgage repayments.

SHARE WEBPAGE