Adverse Credit Mortgages

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.

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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.

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 Check my file which covers the three main credit reference agencies.  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.
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“I can’t thank Zoe enough we never thought it would be possible to get our own house but Zoe made it all possible she reassured us through out and was always there to answer any of our questions.

She always had quick and professional replies even answered the silly questions we had. On behalf of me and my husband thank you Zoe you have made this all possible for us, we are forever thankful.”

Storme Jones Google review January 2024

 

Your home may be reprocessed if you do not keep up repayments on your mortgage.

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Financial advisory in Worcestershire and Kent

Based in Droitwich Spa, we’ve proudly supported clients of all ages since 2004. The opening of our second office in Sevenoaks allowed us to extend our bespoke financial services even further, making SN Financial a trusted financial adviser for individuals, couples, families and businesses across Worcestershire, Kent and the rest of the UK.

Droitwich Office

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

Sevenoaks Office

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