Bad Credit Mortgages

There are a number of things you can do to improve your creditworthiness before making an application, but not all of them will make an immediate difference. It’s a good idea to read our tips to improve your credit a few months before you apply, to give these steps the best chance of working for you.

Typically you’ll need to be 6 years clear of your bankruptcy before most mortgage lenders will consider you for a mortgage. However, there are some specialist bad credit lenders who may be willing to help you before then. If you’ ve been bankrupt in the past, it’s a very good idea to speak to a mortgage broker who specialises in this lending niche.

A near prime lender is a term usually used to describe lenders who allow minor credit issues, but not severe ones. A sub-prime lender usually describes those who will consider borrowers with more significant credit issues.

Your credit score itself won’t necessarily mean that you only have access to one or the other. Despite the fact that all lenders assess risk differently, they don’t all use the same credit referencing agency. Each credit referencing agency uses their own scoring matrix, meaning that what constitutes a low numerical credit score varies between them.

You’ll need to be registered on the electoral roll for most mortgages, no matter whether they specialise in bad credit or not. This is an important marker on your credit file, which could determine the difference between a low and passable score with some lenders.

Whereas not all lenders use a credit score and are willing to look at your broader financial history, most will want you to be registered on the electoral roll to strengthen your application.