Is it possible to get a mortgage with a bad credit history?

I am currently paying back some store cards and credit cards with which I got into a bit of a mess a couple of years ago! However me and my partner have been thinking of purchasing a house. I am worried that I won't get a mortgage due to my bad credit history! Are there any mortgage providers who would still give me a mortgage or take into consideration the fact that I am now in control of my debts and on the right path to clearing them?

9 Answers

Relevance
  • Anonymous
    1 decade ago
    Favorite Answer

    Hi Charlotte,

    Yes, in answer to your question, there are plenty of sub-prime lenders out there prepared to deal with people who have had missed and late payments. Summed up a poor credit file.

    However other things other than your poor credit history will also contribute to the decision as to wether or not to provide you with a mortgage.

    For instance if you are regularly paying credit card debt, this will effect you affordability of a mortgage. In other words if to much of your income is wrapped up in paying the debt then it will be deemed you can not afford the mortgage.

    Also you will need a sizeable deposit as 100% mortgages are getting more and more difficult to obtain They are even rarer for some one with a poor credit file.

    If i were in your situation i would try to clear my debt as quickly has possible. Once that was done i would start to save a deposit.

    Pay everything on time try to miss nothing.

    whilst you are doing this you are repairing your credit profile. Given two years of good conduct on your finances and a small deposit you could possibly be able to approach a high street lenders giving you the options of far better rates.

    It is hard work to turn your finances round but it can be done and i really do wish you all the best.

    Good luck xx

    Source(s): Mortgage Advisor
    • Login to reply the answers
  • leambi
    Lv 5
    1 decade ago

    Yes there will be but you are going to need a minimum of a 15% deposit and have no defaults on payments within the last 3 to 12 months. You will have a higher interest rate but if you get a fixed rate for 2 years, after your rate period finishes (as long as you have not missed any payments) then you should be able to get a lower interest rate. I would recommend that you speak to an independent mortgage broker who can give you advice and search a panel of lenders for the best deals available to you (they should not charge for this service).

    Source(s): I work for a mortgage broker
    • Login to reply the answers
  • 1 decade ago

    If you have a bad credit history still the loan market place is full of lenders who are ever willing to offer you a fresh loan. But you should be meeting some conditions laid down by the lenders. Loans for bad credit people are in fact easier to get then they were ever before, thanks mainly to cut-throat competition amongst the lenders. Lenders are giving loans to the bad credit people who have late payments, payment defaults, arrears, county court judgments or any credit problems. These loans are available for any purpose like home improvements, purchasing a new or used car of your choice, for wedding and holiday tour, debt consolidation or for paying child’s tuition fees.

    Every lender in approving loans surely likes to see if the bad credit borrower has sufficient capacity to repay the loan in timely manner. If the borrower earns well, has regular bank balance, has been an employee for some years and has a convincing loan repayment plan in place, then the lenders do not usually hesitate much. So ensure that you have adequate repaying capacity before applying for a loan. Also, you should first check your credit report for any errors. If your credit score is too low then you would be charged a very high rate of interest. So it is advisable to first pay off some easy debts to improved credit score and then you should apply for loan at better rates.

    http://badcreditloans.we.bs/badcreditloans.html

    • Login to reply the answers
  • 1 decade ago

    Speak to a mortgage broker, you will be able to get a mortgage with a sub prime lender but the rate will be higher than from a high street bank. Good luck.

    • Login to reply the answers
  • How do you think about the answers? You can sign in to vote the answer.
  • Andy S
    Lv 5
    1 decade ago

    It depends upon how bad your credit is right now and how long you've been improving. The housing market is dismal right now and mortgage providers are scrutinizing folks through a microscope. Go and speak with somebody from your financial institution. Good luck!

    • Login to reply the answers
  • 1 decade ago

    Northern Rock?

    • Login to reply the answers
  • 1 decade ago

    See a mortgage advisor & I'm sure they will help you as much as they can.Good luck.

    • Login to reply the answers
  • 1 decade ago

    Find a good mortgage advisor, they will find you the best deal there is.

    • Login to reply the answers
  • Anonymous
    1 decade ago

    depends on how bad your credit history is or was. i done it with the chelsea.

    • Login to reply the answers
Still have questions? Get your answers by asking now.