If you have had poor credit in the past, this can impact on your ability to get a Mortgage with many lenders. However a Bad Credit Mortgage may still be available depending on your circumstances. There are many lenders that will consider you, even if you have had a less than good credit history.
If you have Court Judgements and Defaults.
If you have had a court judgement or a default, then it is still possible to get a mortgage. There are specialist lenders that will consider applications if you have had defaults or court decrees against you.
Every lender has different criteria, when it comes to defaults and court judgements which they will accept. Some lenders will ignore defaults or court judgements more than three years old. While other lenders will have maximum figure for a default or a court decree. Other lenders will look at overall affordability and on the size of deposit you can put down.
When it comes to the size of deposit, the rule of thumb is the bigger the better. Lenders tend to consider you more favourably, if you have a larger deposit to put down. However that is not to say there are no lenders that are willing to look at those with smaller deposits. At the time of writing this post, there are lenders that could go as high as 95%, However the size of default and when they were registered will impact on your chances of obtaining such a high loan to value mortgage.
Can I get a mortgage if I have been bankrupt or sequestrated?
The answer to that question is in theory yes, however it will depend on how long ago your sequestration or bankruptcy was discharged.
There are lenders in Scotland that will consider you after you have been discharged after three years. You should however note that they will only consider you after three years from the exact date of your discharge. Your credit conduct and score needs also needs to be a really good from the date of discharge to have any chance.
While there are lenders that will consider you after three years, there are more lenders that will consider you after six years since your discharge.
It is important to realise that the lenders will count the date from when you were discharged not when you were bankrupted or sequestrated.
If you have had missed payments on unsecured credit or mortgage.
Again there are lenders that will consider you if you have had missed payments on unsecured loans, credit cards or even on your mortgage.
The lenders that will consider you all have different criteria, however most of will require you to have at least three clear months payments on your loan, credit card or mortgage.
So if you need to bring your mortgage up-to-date prior to application then you need to do this. Missed payments will also need a good explanation as to the reason you missed them. Simply blaming the Bank for messing up a Direct Debit might be acceptable once. However if you have had more than one missed in last 12 months, you need to have a better reason than above
Get advice From a Specialist Mortgage Advisor.
Each lender as I said will have their own criteria and it is best to speak to a professional mortgage adviser before entering any agreement to buy a property. By speaking to a specialist mortgage advisor or broker, you will get the information you need and find out if you meet the lender’s criteria. This will save you a lot of wasted time.
At Mortgage Advisor Glasgow we have specialist Mortgage Consultants, that have years of experience in helping those looking for a Bad Credit Mortgage.
If you need help or advice on what mortgages are available, if you have had a poor credit – in the past. Then please get in touch, give us a call on 01412801992 or alternatively use the “Call Me Back” button on this page, and one of our advisers will call you to discuss your needs.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE