Subscribe to our Feed
Poor Credit Mortgage applications
Three Golden Rules
Getting a mortgage with poor credit may seem complicated and people can feel that, with CCJ's or defaults registered on their credit file it would be neigh on impossible in today's market. The truth of the matter is that whilst CCJ's and defaults are obstacles to overcome they do not mean you can not get a mortgage - they simply mean there are a few things you may want to in order to ensure you get the best mortgage for you.
Apply for you credit report
This is often overlooked by many people with poor credit but unless you have kept every letter and every bit of correspondence from your creditors and the courts its pretty much the only way to ensure you know what a lender will see (as far as poor credit goes) when they are accessing your mortgage application. There are three credit reference agencies in the UK, they are Callcredit Ltd, Experian and Equifax - Applying to any one of them should put you in better stead - CreditExpert from Experian will allow a 30 days free trial which will give you online access to your credit report for 30 days at no cost to yourself - get your credit report
Get your paperwork in order for bad credit mortgages
When you apply for any mortgage there are certain things you will need to supply the lender in order for them to assess your application, one of the main hold-ups is when people do not supply documentation in a timely manner for the lender or broker who is trying to get a decision in principle or a mortgage offered. Unlike a 'normal mortgage' an poor credit mortgage will more than likely require more information from the potential borrower prior to the lender offering a decision in principle - the longer it takes to get this information to them the longer it will take to get a firm decision in principle or mortgage offer.
Be honest with you broker
It can sometimes be the case that people may be a little embarrassed to disclose what poor credit they have listed on their credit file but bearing in mind the mortgage underwriting process will look at every aspect of your financial situation it is important to let your broker know of any potential problems before the application is sent to the lender - letting your mortgage broker look at your credit report or letting them know exactly what poor credit is registered will ensure they are fully aware of any potential poor credit that may cause problems with a mortgage application which means they can act appropriately to ensure any issues are dealt with swiftly and efficiently.
Conclusion for poor credit mortgage applications
There are essentially three things you can do to help you mortgage broker get you the best poor credit mortgage possible. Whilst they are in no particular order, you should be honest with your broker form the outset, your should apply for your credit report (even a free report from CreditExpert is better than none at all) and do your best to make sure any paperwork requested by your broker or by the mortgage lender are provided as soon as you are able. Doing these three things can help your poor credit mortgage application move much more smoothly and proceed much quicker.
