A Poor Credit Rating Need Not Mean You Will Be Renting Forever
Bad credit is seen as one of the major stumbling blocks to being approved for a mortgage. But it doesn’t have to be that way.
This is the age of quick and easy credit, and unfortunately for many, it can lead to problems. More people than ever are falling into arrears and failing to make minimum payments. Sometimes, this results in defaults, CCJs or even bankruptcy.
If this sounds like a familiar story, you can take comfort that you are not alone. Whatever financial difficulties you have faced, there are always options available to you, and if you think your credit history means you will never be able to buy a home, think again. That’s exactly what bad credit mortgages were invented for.
Default notices and mortgages
A default notice is lodged on your credit file if you consistently fail to make agreed payments. Typically, it will be issued after three to six instances. Defaults can only be issued relating to debts regulated under the Consumer Credit Act.
Having defaults on the prospective borrower’s credit file is one of the most common reasons for a lender to decline a mortgage application. If you have spent an afternoon trudging along the high street, from one bank to the next, only to be turned away time and again, it is understandable that you will be feeling a little disconsolate, and you might even think that your dream of home ownership will come to nothing.
The reason you are having this problem is that the everyday high street lenders will usually only accept applicants who have a squeaky clean credit history. That doesn’t mean that someone with a poor credit rating will not be able to get a mortgage, however. They just need to talk to a specialist provider.
Bad credit mortgages
These days, there are thousands of people with credit histories that could be better, and the vast majority are those who want to look forward, not back. If you are in a position where to want to take out a mortgage, there is no greater commitment to getting your credit status back on track, and there are specialist brokers who will be happy to help you.
Working with the right lenders
Finding the right mortgage depends on your individual circumstances, and when those circumstances involve bad credit it is even more important to cast your net as wide as possible to zero in on the perfect deal. This is why you need a broker who specialises in bad credit in your corner.
They will have the most up-to-date information on what lenders are offering what deals under what circumstances. So whether you have simply missed a couple of payments and given your credit rating a dent or you are starting from scratch after a County Court Judgement or bankruptcy, they will be able to lay down a range of options. And most importantly, they will help you find a mortgage deal that is affordable, to put you on the road to repairing your credit.
Don’t let yesterday’s tribulations affect tomorrow. Your dream of owning your own home can become a reality if you speak to the right people!