Bad Credit Mortgages

Defaults

A default is where a credit payment has been missed or a debt has been ignored.

Each lender is different and specialises in different areas, some specialise in low rates and lend to customers with clean credit, some specialise in self-employed lending, some specialise in adverse credit. Luckily, there are also lenders who specialise in and are happy to lend to those with defaults and other complexities.

The longer a default has been on your record, the less impact it is likely to have on your ability to obtain a mortgage. It will stay on your credit record for six years from the date of the default, after which you can start to improve your credit rating.

Adverse credit mortgage lenders tend to be tighter on their affordability calculation than some of the high street lenders. If you have a clean credit history you can borrow up to 5x income, sometimes more in certain exceptional circumstances. 

If you have defaults your maximum borrowing may be limited as the lenders who take on higher risk for those with adverse credit like to minimise the risk elsewhere, therefore they may require a higher deposit in the majority of cases.

If the adverse credit issue is over 3 years old, it may be possible to borrow up to 4.5, maybe 5x income, but usually maximum loans sizes are around 4x income. Generally, the more severe the adverse credit, the higher the risk is perceived to be and so lenders accepting a higher risk will limit loan to income to a greater degree.

All lenders accept 100% of basic salary but some will only accept 50% of overtime, bonuses and other additional income, whereas others will look at all income including overtime and bonuses.

Some will demand 3 years of self-employment where others are happy to lend to those with 1 year’s trading. Some demand those in employment to have been in the same role for 12 months, some with the same employer for 12 months etc.

Maximum loans are also limited by other outgoings and financial commitments. Those with personal loan repayments of hundreds of pounds per month are less able to afford the new repayment than those on the same income with no other commitments.

Many variables are looked into so it is best to get in touch with a broker who can look into all the different lenders to see which would suit your circumstances.

Late Payments

A late payment is where you have a single late payment, this payment may have been missed and then paid late. The main thing is that the payment has now been made.

If your payment was due on the 1st and then paid on the 10th, creditors usually won’t register this as a missed payment, as payments have been made before your next payment is due.

This is different to an arrear which is where there are consecutive late payments, these payments are likely to be registered as defaults on your credit file and could affect your credit rating further.

Each lender is different and specialises in different areas, some specialise in low rates and lend to customers with clean credit, some specialise in self-employed lending, some specialise in adverse credit. Luckily, there are also lenders who specialise in and are happy to lend to those with defaults and other complexities. One of the biggest factors which lenders look at is whether the missed payment is a secured or unsecured late payment, lenders tend to be more lenient with unsecured late payments.

The longer a late payment has been on your record, the less impact it is likely to have on your ability to obtain a mortgage. It will stay on your credit record for six years from the date of the default, after which you can start to improve your credit rating.

Adverse credit mortgage lenders tend to be tighter on their affordability calculation than some of the high street lenders. If you have a clean credit history you can borrow up to 5x income, sometimes more in certain exceptional circumstances. 

If you have defaults your maximum borrowing may be limited as the lenders who take on higher risk for those with adverse credit like to minimise the risk elsewhere, therefore they may require a higher deposit in the majority of cases.

If the adverse credit issue is over 3 years old, it may be possible to borrow up to 4.5, maybe 5x income, but usually maximum loans sizes are around 4x income. Generally, the more severe the adverse credit, the higher the risk is perceived to be and so lenders accepting a higher risk will limit loan to income to a greater degree.

All lenders accept 100% of basic salary but some will only accept 50% of overtime, bonuses and other additional income, whereas others will look at all income including overtime and bonuses.

Some will demand 3 years of self-employment where others are happy to lend to those with 1 year’s trading. Some demand those in employment to have been in the same role for 12 months, some with the same employer for 12 months etc.

Maximum loans are also limited by other outgoings and financial commitments. Those with personal loan repayments of hundreds of pounds per month are less able to afford the new repayment than those on the same income with no other commitments.

Many variables are looked into so it is best to get in touch with a broker who can look into all the different lenders to see which would suit your circumstances.

IVA

An IVA (Individual Voluntary Arrangement) is a formal and legally binding agreement made between you and your creditors. An IVA helps you to pay off your debts on a monthly basis, over a specified period, and, as it is approved by the court, your creditors have to stick to it.

You must set up an IVA through an insolvency practioner (this is usually a qualified solicitor or accountants). An insolvency practitioner will work out both how much you can afford to pay, and how long the IVA will run for. They will also contact your creditors to get their agreement to the IVA. For the IVA to start, at least 75% of your creditors will need to agree. However if this threshold is met the IVA will apply to all creditors, even those that disagreed.

 

Fees are applied by your insolvency practitioner. There are generally 2 types of fees – a set up fee and a handling fee for each payment made – but these are usually added to your monthly payments. You shouldn’t have to pay anything upfront.

You can pay off a number of different types of debts via an IVA including personal loans, overdrafts, credit card debts and even money owed to HMRC. You won’t however be able to use an IVA to pay off magistrate court fines, some types of car finance, student loans or child support/maintenance arrears. It is possible to include mortgage or rent arrears in an IVA but often creditors won’t agree to this.

Each lender is different and specialises in different areas, some specialise in low rates and lend to customers with clean credit, some specialise in self-employed lending, some specialise in adverse credit. Luckily, there are also lenders who specialise in and are happy to lend to those with defaults and other complexities.

 

The IVA will always appear on any credit file so each lender will be able to see this information and therefore take this into account when making this decision. This may make finding a competitive mortgage deal more difficult, but whether you have completed your IVA, or are still in it, it doesn’t mean it’s impossible.

The longer an IVA has been on your record, the less impact it is likely to have on your ability to obtain a mortgage. It will stay on your credit record for six years from the date of the default, after which you can start to improve your credit rating.

Adverse credit mortgage lenders tend to be tighter on their affordability calculation than some of the high street lenders. If you have a clean credit history you can borrow up to 5x income, sometimes more in certain exceptional circumstances. 

If you have defaults your maximum borrowing may be limited as the lenders who take on higher risk for those with adverse credit like to minimise the risk elsewhere, therefore they may require a higher deposit in the majority of cases.

If the adverse credit issue is over 3 years old, it may be possible to borrow up to 4.5, maybe 5x income, but usually maximum loans sizes are around 4x income. Generally, the more severe the adverse credit, the higher the risk is perceived to be and so lenders accepting a higher risk will limit loan to income to a greater degree.

All lenders accept 100% of basic salary but some will only accept 50% of overtime, bonuses and other additional income, whereas others will look at all income including overtime and bonuses.

Some will demand 3 years of self-employment where others are happy to lend to those with 1 year’s trading. Some demand those in employment to have been in the same role for 12 months, some with the same employer for 12 months etc.

Maximum loans are also limited by other outgoings and financial commitments. Those with personal loan repayments of hundreds of pounds per month are less able to afford the new repayment than those on the same income with no other commitments.

Many variables are looked into so it is best to get in touch with a broker who can look into all the different lenders to see which would suit your circumstances.

Repossession

Repossession is the seizure of property that usually occurs as a result of non payment of a debt, it can happen quite quickly and without warning. Although some lenders may technically be able to repossess collateral immediately after a missed payment, most repossessions take place on accounts that are 10 days or more past due.

Any item used to secure a loan or a line of credit can be subject to repossession if the debt goes into default. One such item is a home.

Repossession is one of the most severe forms of adverse credit, especially when applying for a mortgage, as you’ve already defaulted on a previous mortgage. Therfore it is important to understand that mortgage approval won’t be easy, it is however possible.

There are lenders that specialise in mortgages with bad credit and have specific products made for this very reason. Specialist lenders will still carry out an assessment before lending. Depending on your circumstances, getting a mortgage after repossession could well be possible.

The longer a repossession has been on your record, the less impact it is likely to have on your ability to obtain a mortgage. It will stay on your credit record for six years from the date of the default, after which you can start to improve your credit rating.

Adverse credit mortgage lenders tend to be tighter on their affordability calculation than some of the high street lenders. If you have a clean credit history you can borrow up to 5x income, sometimes more in certain exceptional circumstances. 

If you have defaults your maximum borrowing may be limited as the lenders who take on higher risk for those with adverse credit like to minimise the risk elsewhere, therefore they may require a higher deposit in the majority of cases.

If the adverse credit issue is over 3 years old, it may be possible to borrow up to 4.5, maybe 5x income, but usually maximum loans sizes are around 4x income. Generally, the more severe the adverse credit, the higher the risk is perceived to be and so lenders accepting a higher risk will limit loan to income to a greater degree.

All lenders accept 100% of basic salary but some will only accept 50% of overtime, bonuses and other additional income, whereas others will look at all income including overtime and bonuses.

Some will demand 3 years of self-employment where others are happy to lend to those with 1 year’s trading. Some demand those in employment to have been in the same role for 12 months, some with the same employer for 12 months etc.

Maximum loans are also limited by other outgoings and financial commitments. Those with personal loan repayments of hundreds of pounds per month are less able to afford the new repayment than those on the same income with no other commitments.

Many variables are looked into so it is best to get in touch with a broker who can look into all the different lenders to see which would suit your circumstances.

CCJ

A CCJ stands for a County Court Judgement, and can be issued against you in England, Wales, and Northern Ireland if you don’t repay money you owe. In cases where a person has missed payments that they’ve agreed to make or failed to arrange a payment plan agreement, the court is able to order a CCJ. Having a CCJ means that your name is registered in the Register of Judgements, Orders and Fines.

The build-up to having a CCJ ordered is quite extensive, so it’s very rare that a person won’t be aware that they have a CCJ. Normally there are a large number of creditor letters, bill reminders, and formal letters that are sent to a person before such a point where a CCJ is ordered

In many cases, a CCJ can be avoided by communicating with creditors to arrange a payment schedule based on personal financial circumstances. Once the case has been taken to court, the person will either be required to make payments in instalments or to prevent a CCJ being ordered, pay the full debt amount.

Although a CCJ is a negative mark in your credit history, in many cases you can still get a mortgage.. To get a full overview of your situation, a lot of information is gathered by credit reference agencies, and affordability is reviewed, so a CCJ will only play a partial role in whether you get accepted for a mortgage.

When applying for a mortgage, it’s often the case that CCJs aren’t considered evenly, how severely a CCJ will work against you can be determined by:

  • The Date of the CCJ
  • The Amount of the CCJ 
  • The Number of CCJs 
  • Whether the CCJ is Satisfied 

Any Other Bad Credit

The longer a repossession has been on your record, the less impact it is likely to have on your ability to obtain a mortgage. It will stay on your credit record for six years from the date of the default, after which you can start to improve your credit rating.

Adverse credit mortgage lenders tend to be tighter on their affordability calculation than some of the high street lenders. If you have a clean credit history you can borrow up to 5x income, sometimes more in certain exceptional circumstances. 

If you have defaults your maximum borrowing may be limited as the lenders who take on higher risk for those with adverse credit like to minimise the risk elsewhere, therefore they may require a higher deposit in the majority of cases.

If the adverse credit issue is over 3 years old, it may be possible to borrow up to 4.5, maybe 5x income, but usually maximum loans sizes are around 4x income. Generally, the more severe the adverse credit, the higher the risk is perceived to be and so lenders accepting a higher risk will limit loan to income to a greater degree.

All lenders accept 100% of basic salary but some will only accept 50% of overtime, bonuses and other additional income, whereas others will look at all income including overtime and bonuses.

Some will demand 3 years of self-employment where others are happy to lend to those with 1 year’s trading. Some demand those in employment to have been in the same role for 12 months, some with the same employer for 12 months etc.

Maximum loans are also limited by other outgoings and financial commitments. Those with personal loan repayments of hundreds of pounds per month are less able to afford the new repayment than those on the same income with no other commitments.

Many variables are looked into so it is best to get in touch with a broker who can look into all the different lenders to see which would suit your circumstances.

Bad Credit Re-Mortgage

A bad credit re-mortgage is if your existing mortgage deal is coming to an end, or you want to free up some extra cash then you would need to mortgage the property again.

If you’re applying for a re-mortgage with bad credit it’s not always plain sailing. Having an existing mortgage on your home doesn’t guarantee that you’re going to find it easy to get a re-mortgage. It is however possible so get in touch with a specialist broker.

The longer a repossession has been on your record, the less impact it is likely to have on your ability to obtain a mortgage. It will stay on your credit record for six years from the date of the default, after which you can start to improve your credit rating.

Adverse credit mortgage lenders tend to be tighter on their affordability calculation than some of the high street lenders. If you have a clean credit history you can borrow up to 5x income, sometimes more in certain exceptional circumstances. 

If you have defaults your maximum borrowing may be limited as the lenders who take on higher risk for those with adverse credit like to minimise the risk elsewhere, therefore they may require a higher deposit in the majority of cases.

If the adverse credit issue is over 3 years old, it may be possible to borrow up to 4.5, maybe 5x income, but usually maximum loans sizes are around 4x income. Generally, the more severe the adverse credit, the higher the risk is perceived to be and so lenders accepting a higher risk will limit loan to income to a greater degree.

All lenders accept 100% of basic salary but some will only accept 50% of overtime, bonuses and other additional income, whereas others will look at all income including overtime and bonuses.

Some will demand 3 years of self-employment where others are happy to lend to those with 1 year’s trading. Some demand those in employment to have been in the same role for 12 months, some with the same employer for 12 months etc.

Maximum loans are also limited by other outgoings and financial commitments. Those with personal loan repayments of hundreds of pounds per month are less able to afford the new repayment than those on the same income with no other commitments.

Many variables are looked into so it is best to get in touch with a broker who can look into all the different lenders to see which would suit your circumstances.

Joint Mortgage Bad Credit

A joint mortgage is when you apply to borrow money to buy a home with someone else, like your partner, a friend or a relative. Everyone who applies will have to meet our lending criteria, and they'll be jointly liable for the mortgage payments.

When applying for a joint mortgage, lenders will want to establish the below for each applicant:

  • Relationship of applicants (cohabiting, married, family)
  • Single or joint names
  • Ages of each applicant
  • Experience of each applicant (first-time buyers, investors, etc)
  • Employment status (working, self-employed, contractor, etc)
  • Income for each applicant
  • The amount of credit currently outstanding (if any)

Lenders will also assess the mortgage you’ve applied for, larger deposits will make the possibly of lending higher.

The majority of lenders prefer married applicants to take joint mortgages. The main reason is joint applications provide more security for the lender. The problem can arise where one applicant has bad credit and therefore is declined a mortgage.

Fortunately, there are a handful of lenders that will accept sole applicants, even if an applicant is married. Such lenders will base their decision on the affordability of the sole applicant.

The longer a repossession has been on your record, the less impact it is likely to have on your ability to obtain a mortgage. It will stay on your credit record for six years from the date of the default, after which you can start to improve your credit rating.

Adverse credit mortgage lenders tend to be tighter on their affordability calculation than some of the high street lenders. If you have a clean credit history you can borrow up to 5x income, sometimes more in certain exceptional circumstances. 

If you have defaults your maximum borrowing may be limited as the lenders who take on higher risk for those with adverse credit like to minimise the risk elsewhere, therefore they may require a higher deposit in the majority of cases.

If the adverse credit issue is over 3 years old, it may be possible to borrow up to 4.5, maybe 5x income, but usually maximum loans sizes are around 4x income. Generally, the more severe the adverse credit, the higher the risk is perceived to be and so lenders accepting a higher risk will limit loan to income to a greater degree.

All lenders accept 100% of basic salary but some will only accept 50% of overtime, bonuses and other additional income, whereas others will look at all income including overtime and bonuses.

Some will demand 3 years of self-employment where others are happy to lend to those with 1 year’s trading. Some demand those in employment to have been in the same role for 12 months, some with the same employer for 12 months etc.

Maximum loans are also limited by other outgoings and financial commitments. Those with personal loan repayments of hundreds of pounds per month are less able to afford the new repayment than those on the same income with no other commitments.

Many variables are looked into so it is best to get in touch with a broker who can look into all the different lenders to see which would suit your circumstances.

Mortgage with Pay Day Loans

A payday loan is a type of short-term borrowing where a lender will extend high-interest credit based on your income. Its principal is typically a portion of your next paycheck. Payday loans charge high interest rates for short-term immediate credit. They are also called cash advance loans or check advance loans.

Some lenders do offer a mortgage after a payday loan but this wouldn’t be on the same terms as those who haven’t taken out a payday loan. Lenders look at factors such as the following when assessing whether to lend or not:

  • The frequency of your payday loan use
  • How recent your last payday loan was
  • If you’ve had problems with your credit
  • The loan to value of your mortgage

The longer a loan has been on your record, the less impact it is likely to have on your ability to obtain a mortgage.

Adverse credit mortgage lenders tend to be tighter on their affordability calculation than some of the high street lenders. If you have a clean credit history you can borrow up to 5x income, sometimes more in certain exceptional circumstances. 

If you have defaults your maximum borrowing may be limited as the lenders who take on higher risk for those with adverse credit like to minimise the risk elsewhere, therefore they may require a higher deposit in the majority of cases.

If the adverse credit issue is over 3 years old, it may be possible to borrow up to 4.5, maybe 5x income, but usually maximum loans sizes are around 4x income. Generally, the more severe the adverse credit, the higher the risk is perceived to be and so lenders accepting a higher risk will limit loan to income to a greater degree.

All lenders accept 100% of basic salary but some will only accept 50% of overtime, bonuses and other additional income, whereas others will look at all income including overtime and bonuses.

Some will demand 3 years of self-employment where others are happy to lend to those with 1 year’s trading. Some demand those in employment to have been in the same role for 12 months, some with the same employer for 12 months etc.

Maximum loans are also limited by other outgoings and financial commitments. Those with personal loan repayments of hundreds of pounds per month are less able to afford the new repayment than those on the same income with no other commitments.

Many variables are looked into so it is best to get in touch with a broker who can look into all the different lenders to see which would suit your circumstances.

Mortgage with Bankruptcy

Bankruptcy is a legal proceeding involving a person or business that is unable to repay their outstanding debts. The bankruptcy process begins with a petition filed by the debtor, which is most common, or on behalf of creditors, which is less common. All of the debtor's assets are measured and evaluated, and the assets may be used to repay a portion of the outstanding debt.

Although declaring bankruptcy and recovering from the experience is not an easy process obtaining a mortgage can still be possible. The range of lenders however would be limited so it would be best to first look at the following factors and then get in touch with a broker who can assess your needs and recommend the most suitable lenders for your requirements:

  • Check Your Recent Credit History
  • Rebuild Your Credit Profile
  • Calculate Amount of Loan/Deposit
  • If You Have Bad Credit Don’t Make Multiple Searches, Talk to the Experts

The longer a repossession has been on your record, the less impact it is likely to have on your ability to obtain a mortgage. It will stay on your credit record for six years from the date of the default, after which you can start to improve your credit rating.

Adverse credit mortgage lenders tend to be tighter on their affordability calculation than some of the high street lenders. If you have a clean credit history you can borrow up to 5x income, sometimes more in certain exceptional circumstances. 

If you have defaults your maximum borrowing may be limited as the lenders who take on higher risk for those with adverse credit like to minimise the risk elsewhere, therefore they may require a higher deposit in the majority of cases.

If the adverse credit issue is over 3 years old, it may be possible to borrow up to 4.5, maybe 5x income, but usually maximum loans sizes are around 4x income. Generally, the more severe the adverse credit, the higher the risk is perceived to be and so lenders accepting a higher risk will limit loan to income to a greater degree.

All lenders accept 100% of basic salary but some will only accept 50% of overtime, bonuses and other additional income, whereas others will look at all income including overtime and bonuses.

Some will demand 3 years of self-employment where others are happy to lend to those with 1 year’s trading. Some demand those in employment to have been in the same role for 12 months, some with the same employer for 12 months etc.

Maximum loans are also limited by other outgoings and financial commitments. Those with personal loan repayments of hundreds of pounds per month are less able to afford the new repayment than those on the same income with no other commitments.

Many variables are looked into so it is best to get in touch with a broker who can look into all the different lenders to see which would suit your circumstances.

Mortgage with Debt Management Plan

With a debt management plan, you make one monthly payment which is then divided among your creditors to pay off your debt.

A debt management plan lets you pay off non-priority debts at a rate that you can afford. Non-priority debts include personal loans, credit card or store card debts, payday loans and overdrafts. A debt management plan can’t be used to pay off priority debts such as fines, utility bill arrears, child support, and mortgage payments or rent.

Entering a debt management plan can be an effective way to take control of your debts and improve the health of your finances. If you’re currently in a DMP or have recently left one there will be some impact on your ability to get a mortgage or re-mortgage, this does not however mean it will be impossible.

The longer a debt management plan has been on your record, the less impact it is likely to have on your ability to obtain a mortgage. It will stay on your credit record for six years from the date of the default, after which you can start to improve your credit rating.

Adverse credit mortgage lenders tend to be tighter on their affordability calculation than some of the high street lenders. If you have a clean credit history you can borrow up to 5x income, sometimes more in certain exceptional circumstances. 

If you have defaults your maximum borrowing may be limited as the lenders who take on higher risk for those with adverse credit like to minimise the risk elsewhere, therefore they may require a higher deposit in the majority of cases.

If the adverse credit issue is over 3 years old, it may be possible to borrow up to 4.5, maybe 5x income, but usually maximum loans sizes are around 4x income. Generally, the more severe the adverse credit, the higher the risk is perceived to be and so lenders accepting a higher risk will limit loan to income to a greater degree.

All lenders accept 100% of basic salary but some will only accept 50% of overtime, bonuses and other additional income, whereas others will look at all income including overtime and bonuses.

Some will demand 3 years of self-employment where others are happy to lend to those with 1 year’s trading. Some demand those in employment to have been in the same role for 12 months, some with the same employer for 12 months etc.

Maximum loans are also limited by other outgoings and financial commitments. Those with personal loan repayments of hundreds of pounds per month are less able to afford the new repayment than those on the same income with no other commitments.

Many variables are looked into so it is best to get in touch with a broker who can look into all the different lenders to see which would suit your circumstances.

Mortgage with a Guarantor

A guarantor is a financial term describing an individual who promises to pay a borrower's debt in the event that the borrower defaults on their loan obligation. Guarantors pledge their own assets as collateral against the loans. In some situations, individuals act as their own guarantors, by pledging their own assets against the loan.

A mortgage guarantor is someone – usually a parent, a relative or even a close friend – who will cover your mortgage repayments if you can’t pay them for any reason.

A guarantor mortgage may suit you if:

  • You have little or no credit history
  • You have a poor credit score
  • You’re struggling to save enough for a decent deposit

Guarantor mortgages can sometimes be available with no deposit required – this is called a 100% mortgage.

The Guarantor would legally be responsible for making the mortgage repayments if the borrower cannot make the repayments and therefore risk damaging their credit history and losing their assets.

Having a guarantor can help you to get a larger mortgage, and this can be true in some situations even if you have a small deposit, or no deposit at all. This is because the guarantor’s home or savings is the security against the loan.

Adverse credit mortgage lenders tend to be tighter on their affordability calculation than some of the high street lenders. If you have a clean credit history you can borrow up to 5x income, sometimes more in certain exceptional circumstances. 

If you have defaults your maximum borrowing may be limited as the lenders who take on higher risk for those with adverse credit like to minimise the risk elsewhere, therefore they may require a higher deposit in the majority of cases.

If the adverse credit issue is over 3 years old, it may be possible to borrow up to 4.5, maybe 5x income, but usually maximum loans sizes are around 4x income. Generally, the more severe the adverse credit, the higher the risk is perceived to be and so lenders accepting a higher risk will limit loan to income to a greater degree.

All lenders accept 100% of basic salary but some will only accept 50% of overtime, bonuses and other additional income, whereas others will look at all income including overtime and bonuses.

Some will demand 3 years of self-employment where others are happy to lend to those with 1 year’s trading. Some demand those in employment to have been in the same role for 12 months, some with the same employer for 12 months etc.

Maximum loans are also limited by other outgoings and financial commitments. Those with personal loan repayments of hundreds of pounds per month are less able to afford the new repayment than those on the same income with no other commitments.

Many variables are looked into so it is best to get in touch with a broker who can look into all the different lenders to see which would suit your circumstances.

Mortgage with a no credit history

Having no credit means you don't have enough recent credit activity to get a credit score. There are several circumstances that lead to lack of credit. The most common is lack of credit experience, which is something generally experienced by people just coming of age and entering the workforce. But retirees and others who have paid off debts and who haven't used a credit card or other financing in two years or more cannot be assigned a score.

It is possible to get a mortgage without a credit score, but it will require bypassing the automated mortgage application processes used by many lenders in favour of a more time-consuming process called manual underwriting. It will also require you to provide proof that you pay your bills on time by documenting payments not related to debt, such as rent and utility bills.

In contrast to automated mortgage underwriting, which uses credit scores as a "shortcut" to forecast the likelihood of repayment failure, manual underwriting requires a loan officer to personally review your financial documents to determine your creditworthiness. Specific requirements will vary from lender to lender, but you should expect to provide at least a couple years' worth of evidence that you've paid rent regularly and on time, and that you've also made timely payments for utilities, mobile phone service or other recurring expenses.

You should also expect to document employment, income and perhaps other assets such as savings and investments, as you would in a regular automated mortgage application.

Adverse credit mortgage lenders tend to be tighter on their affordability calculation than some of the high street lenders. If you have a clean credit history you can borrow up to 5x income, sometimes more in certain exceptional circumstances. 

If you have defaults your maximum borrowing may be limited as the lenders who take on higher risk for those with adverse credit like to minimise the risk elsewhere, therefore they may require a higher deposit in the majority of cases.

If the adverse credit issue is over 3 years old, it may be possible to borrow up to 4.5, maybe 5x income, but usually maximum loans sizes are around 4x income. Generally, the more severe the adverse credit, the higher the risk is perceived to be and so lenders accepting a higher risk will limit loan to income to a greater degree.

All lenders accept 100% of basic salary but some will only accept 50% of overtime, bonuses and other additional income, whereas others will look at all income including overtime and bonuses.

Some will demand 3 years of self-employment where others are happy to lend to those with 1 year’s trading. Some demand those in employment to have been in the same role for 12 months, some with the same employer for 12 months etc.

Maximum loans are also limited by other outgoings and financial commitments. Those with personal loan repayments of hundreds of pounds per month are less able to afford the new repayment than those on the same income with no other commitments.

Many variables are looked into so it is best to get in touch with a broker who can look into all the different lenders to see which would suit your circumstances.

Do you need some advice or help?

Don’t hesitate to get in touch

Our Address:

10 Milkstone Place, Rochdale, OL11 3TA

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Tel: 0800 0016 786
Mob: 0786 8764 786

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