Adverse Credit Mortgages

It’s a common misconception that someone with bad credit or a poor credit score simply can’t get a mortgage. This line of thought is understandable, yet it isn’t necessarily the case. Below is a little information from our trusted mortgage advisers on how adverse credit mortgages make entering the property market more accessible.

What is an adverse credit mortgage?

The thing about credit scores is that they can take a long time to fix when they start to drop into what lenders consider to be “bad credit”. Even if you now earn a much higher wage than before and always pay your bills on time, certain situations from your past can continue to damage your credit profile for up to six years.

Whilst a history of good credit is of course beneficial, adverse credit mortgages (also called bad credit mortgages) are there for people with a poor credit score or low credit rating.

How do adverse credit mortgages work?

Lenders that provide adverse credit mortgages tend to charge higher interest rates. However, if you now have a steady income and a healthy deposit, our proactive mortgage advisers will help you to find the best deal. Together we’ll explore your options in order to find a lender that specialises in adverse credit mortgages and has an attractive deal available.

Adverse Credit Mortgages

How to prepare for an adverse credit mortgage application

Our mortgage advisers want to make your application run as smoothly as possible, so here are a few actions that we recommend you follow prior to applying for an adverse credit mortgage:

Gather credit reports

Gather your credit reports through a few professional credit reference agencies such as Experian, Equifax and Callcredit. This will give you a crystal clear understanding of your credit score and you can also check the finer details to ensure there are no errors on your report.

Save up for a deposit

Save up as much as you can for your deposit. The larger the deposit you have available, the more options you will be able to access.

Get documents in order

County Court Judgements, defaults, missed payments, credit arrangements, IVAs and bankruptcy will all be taken into consideration.

Avoid multiple credit searches

Avoid multiple credit searches by asking SN Financial for advice first. If you apply for a mortgage before you fully understand your options, these credit searches and hard credit checks will appear on your report and could make the process more difficult.

Research

Research is vital, as it will allow you to find a mortgage lender that suits your circumstances and goals. That’s what we’re here for, as our mortgage advisers are dedicated to finding you the best deal.

Get in touch

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Adverse Credit Mortgages in Worcestershire and Kent

Droitwich Office

5 Saltway, Droitwich, Worcestershire, WR9 8LB
01905 779697

Sevenoaks Office

46 Holly Bush Lane, Sevenoaks, Kent, TN13 3TL
01732 926255