How to get a mortgage if you have bad credit
If you have had a bit of a rocky credit history, getting a mortgage may seem like an impossible task. You don’t just need a decent income or a big deposit anymore. If you do have a less than perfect credit score, you are likely to be refused. But don’t fret, there are other ways to get around it, just look at our tips below.
Credit Score
First of all you need to assess the damage.
If you don’t know where your credit score stands, you can go to certain websites like Experian which will give you your current rating. They will also show you where money is still owed.
• Excellent Credit: 781 – 850
• Good Credit: 661 – 780
• Fair Credit: 601 – 660
• Poor Credit: 501 – 600
• Bad Credit: 500 and below
Every mortgage company will be different sd to what they accept as ‘good’ credit, but it would be better if you started off in the ‘fair credit’ bracket. The higher your credit score the more likely you will be accepted.
You can still get a mortgage if your credit history is in a lower bracket but you need to make sure you can afford the monthly mortgage payments. Try and pay everything you owe before stepping onto the property ladder.
Building it back up
There are many ways you can build your score back up. Making sure you pay off your credit cards and any store cards that you have would be a good place to start. It might be tough at first, but once it is paid off it will be a weight off of your mind.
• Stop applying for any more credit in the meantime.
• Cancel any credit cards that you don’t use.
• If you aren’t already, register to vote.
Speak to a broker
Just because your credit score is in the negative range, doesn’t mean you aren’t eligible to get a mortgage. Just speak to an independent mortgage broker who should be able to advise you on the best route to take.
A mortgage broker is the middle man between you and your lender. They will try and find you the best possible deal on your mortgage and will be able to advise you about the appropriate road to take.
There is obviously a charge to use a broker but it may be the best option to take as you might not be able to go through a bank to obtain a mortgage.
Don’t worry
You have to remember that sorting out your credit history may take a while. You need to try and stay on top of your payments. If you have a lot of outstanding debt it might be worth speaking to a company which can help you. You can hire a company who will supply you with a DMP (debt management plan). By doing this, they will take care of all your creditors and all you have to do is give them a monthly payment and they will split the money between each creditor. Whatever your financial situation, speaking with a professional is the best thing to do and they will be able to find the best solution for you.
You May Also Enjoy
Eco-Friendly Materials for Sustainable Bathroom Renovations: 2025 Guide
Renting Property: What Tenants Need to Know About Rights & Responsibilities in the UK
Latest ONS first-time buyer mortgage sales report – Thoughts from the Industry
First-time buyer mortgage sales at lowest level since 2013
First-time buyer mortgage sales fell across London in decade to 2023
