Mr. Rob Mackley, Staffordshire
Bad Credit Mortgages - All Circumstances Considered subject to credit checks and scoring.
With the recent recession hitting everybody hard, many people have found it difficult to obtain the mortgage they need in order to step onto the property ladder. As a result, people with bad credit and young people in particular are only able to rent rather than buy a property.
One of the main reasons a mortgage application is rejected is because of the applicant's credit history. When considering any application, the first checks that are made will be credit file reviews. This allows the lender to look at the potential risk of lending to a candidate. If there are any blemishes on the credit check, such as CCJs or unpaid loans and credit cards, then this makes the applicant a risk for the lender. This in turn might result in a rejected application.
Following a rejected application, another blemish will be made on the applicant's credit file. As a consequence, the file is left even more exposed and any further applications are also likely to be rejected. Not surprisingly, this leaves many younger people with no other choice but to rent a property instead.
However, in the current climate there are limited numbers of other lenders who we deal with that offer mortgage facilities for people who have had some historical bad credit. These may allow applicants to be considered for a mortgage taking on board their historical poor credit but each application is literally judged on its merits. Generally speaking, someone who has been good with their finances but may have one or two problems with late payments or even someone who was bankrupt in the past but several years later is more financially stable. Again the golden rule here is get a fact find filled in and completed and we will do what we can to establish very quickly if we can source a lender in your particular circumstances.
If we feel we can assist in obtaining a mortgage for you with some historical bad credit, this will normally take the same amount of time as it would processing an ordinary mortgage and it would be very much underwritten in the same way. From time to time, depending on the lender company, the lender may ask for some additional information to support the fact that your finances are now back on track.
In cases where we have been successful in obtaining mortgages for clients who have had historical poor credit, and providing all future commitments are met going forward, we find often this improves the clients credit file and as a consequence may well increase that particular applicants chances of obtaining a High Street mortgage at a future time. However as always we can never guarantee that that would be the case as market conditions and lenders attitudes to market conditions change so frequently these days.
Still can't get a mortgage? Sometimes of course, the extent of adverse information on your credit file is just too much for a lender to accept. There is still a way forwards though, we recommend The Debt Advisor who can help negotiate a range of solutions to your credit woes and we'll work with you so that once you've reached a point that lenders are happy with, we'll then be able to source a mortgage to suit your new, improved circumstances.
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