Don't let a poor credit history stop you from getting a mortgage
Poor Credit Mortgages
What is Poor Credit and Why Does it Affect Your Mortgage?
The term "poor credit" is generally used to describe a history of failures to keep up with payments on your credit agreements. This, therefore, reduces your credit score, which is a figure that represents your creditworthiness as a borrower. Having a poor credit history and low credit score makes it more difficult in the future to obtain credit from mainstream lenders, including when you apply for a mortgage.
So, What Causes a Poor Credit Score?
There are a variety of factors that can influence your credit score. Some of the factors that may negatively impact your score include:
- Late or missed payments
- A charge off
- Collection accounts
- Filing for bankrupcy
- Court judgements
How Can You Improve Your Credit Score?
- Build your credit history by using a credit card little and often. This shows that you are reliable as you repay the money that you borrow.
- Keep your credit use low by not using all of or more than you allocated credit limit.
- Rectify any errors that may appear on your credit report. This can include registering on the electoral roll.
- Avoid making too many credit applications over a short space of time.
- Pay your bills on time. Late payments suggest poor money management.
- Stay on top of your general finances.
Can You Obtain a Mortgage with Poor Credit?
Yes, you can obtain a mortgage with poor credit but it may not be from a mainstream lender. You may also pay higher interest rates on the money that you borrow and require a much larger deposit than other borrowers.
Sometimes, due to unforeseen circumstances or some of the reasons above, your credit history may not be good enough to use the mainstream mortgage providers. But not to worry as help is at hand. At Your Space Mortgages, we are experts in mortgages for poor credit, helping people who may struggle to borrow otherwise.
Where Can You Get a Credit Report?
To get started, we would advise you to obtain a credit report. It will aid us in placing your mortgage and getting you the best deal possible. There are several credit agencies who can provide this for you. Paid agencies include:
They may also offer a free first time 30-day trial, which we ecommend as it provides you a much more detailed report.
Free agencies also offering credit reports include:
(*Please be aware that by clicking on to the above links you are leaving PMC Independent Mortgage Solutions Ltd’s website. Please note that PMC Independent Mortgage Solutions Ltd is not responsible for the accuracy of the information contained within the linked site(s) accessible from this page.)
Once you have obtained a full credit report, our team will be able to assist you with the next steps to obtaining a mortgage and buying your own property. To find out more about our services, give us a call today on 01179 146 596 or get in touch.