Adverse Credit Mortgages

If you've experienced financial hardship resulting in a County Court Judgement (CCJ), defaulted on credit agreements, or declared bankruptcy, you might find securing a mortgage challenging. However, with adverse credit mortgages, there is still hope. Specialist lenders can assist, though they may impose specific conditions.

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Improve Your Chances of Securing a Mortgage

If you're trying to secure an adverse credit mortgage, there are several steps you can take to improve your chances:

Build Up Your Credit Score

Start by obtaining a copy of your credit file and ensuring all details are accurate. Correct any discrepancies by contacting the file holder. Making all credit payments on time is crucial. If you don't currently hold credit, consider applying for and using a credit facility responsibly to demonstrate your financial management skills. Additionally, manage your bank account within pre-agreed limits, such as an agreed overdraft.

Ask for Help from Family

Sometimes, enlisting a trusted friend or family member to act as a guarantor can secure a better deal. If buying a home with a partner, consider their credit history too. Work together to improve their financial situation before applying for a mortgage.

Explain Bad Credit

Lenders may be more forgiving of a black mark on your credit history if you can provide a reasonable explanation and show the steps you're taking to improve your financial situation. You can add notes of correction to your credit file for lenders to review.

Don't Be High Risk

Prove to potential lenders that you can afford to repay the mortgage. Ensure you have a stable income when applying and take the time to organise your finances.

Consider a Cheaper Property

While it may mean compromising on your dream home, opting for a cheaper property can increase your chances of mortgage approval, especially if it allows you to offer a higher deposit.

Save Up for a Bigger Deposit

The larger your deposit, the more likely you are to be accepted for a mortgage. If your family is willing to help, they may be able to gift you the money for a larger deposit.

Be Honest

Honesty is crucial when applying for a mortgage. Lenders will conduct thorough searches, and withholding information can make you appear unreliable.

Get Advice

Speak to a qualified mortgage broker with experience in adverse credit mortgages. They have access to a wide range of lenders and options, which can significantly improve your chances.

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Adverse Credit: Frequently Asked Questions

What is an adverse credit mortgage?

An adverse credit mortgage is a type of mortgage designed for individuals who have experienced financial hardships such as CCJs, defaults, or bankruptcy, making it difficult to secure a standard mortgage.

How can I improve my chances of getting an adverse credit mortgage?

You can improve your chances by building up your credit score, seeking help from family, explaining any bad credit to lenders, demonstrating financial stability, considering cheaper properties, saving for a larger deposit, and being honest on your application.

Why is building up my credit score important?

Building up your credit score is crucial as it shows lenders that you are capable of managing your finances responsibly, which can significantly improve your chances of being approved for a mortgage.

Can a family member help me secure a mortgage?

Yes, a trusted family member or friend can act as a guarantor to help you secure a better mortgage deal. Additionally, family members may gift you money for a larger deposit.

What should I do if I have a bad credit history?

If you have a bad credit history, provide a reasonable explanation to the lender and demonstrate the steps you are taking to improve your financial situation. Adding notes of correction to your credit file can also help.

Is it important to be honest on my mortgage application?

Yes, honesty is crucial when applying for a mortgage. Lenders conduct thorough searches, and withholding information can make you appear unreliable, potentially harming your chances of approval.

Why should I consider a cheaper property?

Opting for a cheaper property can increase your chances of mortgage approval, especially if it allows you to offer a higher deposit, which makes you a lower risk to lenders.

How can a mortgage broker help me?

A qualified mortgage broker with experience in adverse credit mortgages can provide access to a wide range of lenders and options, significantly improving your chances of securing a mortgage.

 

 

Contact Finance Factors

Finance Factors are here to take the FAFF out of finance. With a wide choice of mortgages offered, we provide options tailored to your needs. As experienced professionals regulated by the Financial Conduct Authority, we ensure you receive sound and clear advice. Serving Maidstone and the surrounding areas, we specialise in helping first-time buyers, those with adverse credit, and individuals needing insurance.

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YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR OTHER LOANS SECURED AGAINST IT.

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Finance Factors is a Trading style of Finance Factors LTD who are an Appointed Representative of Advice Solutions LTD which are Authorised and Regulated by the Financial Conduct Authority. The Financial Service Register Number is 961681.

The Financial Conduct Authority does not regulate some forms of Buy to Lets.

There may be a fee for mortgage advice. The precise amount will depend on your circumstances, but will be agreed with you before proceeding.

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We always aim to provide a high-quality service to our customers. However, if you encounter any problems, in the first instance please write to the registered address above, email or call Finance Factors outlining your complaint, if we are unable to resolve this, you can take your complaint to an independent Ombudsman. Our advice is covered under the Financial Ombudsman Service (www.http://www.financial-ombudsman.org.uk/consumer/complaints.htm).

The guidance and/or information contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK. Some calls maybe recorded for training and monitoring purposes.