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Can you get a Mortgage with Bad Credit
Can you get a mortgage with bad credit? Mortgage lending criteria is stricter than its been for many years and bad credit mortgage rates are higher than they have been for a long time.
Mortgage lenders are having to cut back on the funds they make available for mortgage deals and there's not really any sign of the current mortgage rates improving, the Bank of England reduces mortgage interest rates but the banks are unable to pass them on due in part to the way they are raising funds - that being said their are still mortgage products available and people are still being given mortgage quotes and mortgage offers which do seem to be completing but not at the level they were 12 or 18 months ago, so can you get a mortgage with bad credit?
You could speak to a mortgage broker
Mortgage brokers will be more likely to source you a mortgage with bad credit as they will have access to many more mortgage lenders than yourself, many of the mortgage lenders a specialist broker may use don't deal with the public directly and will require you to go through a broker in order to gain access to their products.
Certain people will be in a better position to get a bad credit mortgage than others, namely those with large deposits and, for people wanting to remortgage, if they have plenty of equity in their property - the reason for this, as well as the obvious one regarding its less of a risk for the lender is the simple fact that with bad credit mortgages its always been easier to get approved if you require a lower loan to value, borrowing less because you have more deposit or equity will also make the mortgage more affordable when the lender works out their income and affordability calculations.
At the moment the only mortgages that mortgage lenders seem to be able to offer on are very low loan to value deals such as 70% or below, for that reason we have a few mortgages listed under credit crunch mortgages, mortgages that are more likely to complete during the times of the credit crunch.
Find out if you can mortgage with bad credit
The best thing to do if you want a mortgage or remortgage with bad credit is to speak to a professional mortgage broker as their will be a lot of things to work through such as the level and types of bad debt you have and this, along with other information can be put into the melting pot so the broker can ascertain of you can mortgage with bad debt and which lenders would consider your mortgage application.
