Mortgage with poor credit history
A guide for applying for a mortgage with poor credit history
If you are considering applying for a mortgage of remortgage and have a poor credit history then the tips below should help. In order to help you apply for a mortgage with poor credit history as quickly as possible and to help speed things up for the broker 
and yourself we have listed below a few things you may want to have to hand before speaking to a broker as this should save you and your mortgage broker time and should enable you to get a quicker response from any adverse mortgage enquiry and allow you to get a quicker completion for a mortgage with poor credit history.
Know what you want when you mortgage with a poor credit history
Knowing what you want is obviously very important, when applying for a standard mortgage with no adverse credit people tend to enquire as to what's available for 12 months down the line, to test the market for future plans - whilst that's all good and well it doesn't really work that way if you have adverse credit as bad credit mortgage criteria and what adverse credit lenders will allow can differ greatly in just a 3 month period so its better to know what you want first - by know what you want we mean that, if you want a remortgage be sure its something you want to do within the next 2 or 3 months, if its a purchase be sure how much deposit you have and what sort of property you want to buy. The last thing you would want is to get a decision in principle approved then apply for a mortgage 3 months later to find you are no longer eligible or the deal you wanted is no longer available.
So what should you have to hand?
The information below is a shortlist of what you may need to have to hand when speaking to a mortgage broker, whilst the list is not exhaustive it will allow you to have the most general and problematic information ready when you apply for an adverse credit mortgage.
Your credit file and mortgage with a poor credit history
Your credit file will allow you to see exactly what's going on with your adverse credit. It will allow you to see when any adverse credit was registered, what type of adverse credit was registered and if (or when) they were repaid. The broker may ask permission to get a credit report themselves but that's more permission for any lender they may apply to for a decision in principle - in order to be sure of which products are available to you, getting your own credit report and letting your adverse mortgage broker see what's on it should speed things up - an adverse credit mortgage broker should have no trouble deciphering your credit report.
Mortgage with a poor credit history
- credit history and dates of missed mortgage payments
This is probably the biggest stumbling block for clients applying for an adverse credit mortgage, the reason for this is that not all mortgage lenders list the mortgage payment history on your credit file and even if they do you do not know which credit reference agency they have listed it with - you may be applying to the wrong agency! The best thing to do is work back 12 months and figure out when payments were made. You will know when your mortgage payments are due each month and your broker will need to know when any payments were not made on the date they were due and, if not the date the payments were made. We wont go into it here but even if your mortgage payments are listed on your credit file, a late payment could be showing as a missed payment and without knowing exactly what payments were made and which date they were paid on the lender and broker will have to go off the credit file which could mean you are losing out on a better deal.
Your income details for mortgage's with a poor credit history
You would be surprised at how many people do not know what their income is on a monthly basis, or what their partner earns. If the mortgage is going to be in joint names then you will need income details for both applicants. You will more than likely need details of your total gross annual income and your average net monthly pay.
What you spend when applying for a mortgage with a poor credit history
This may sound like an odd one but more and more lenders are working mortgage affordability based on income and expenditure instead of using income multiples. With that in mind its a good idea to have a rough guide of your living costs each month - this may sound like an easy question to answer but if you don't have the information to hand and are asked when you are not expecting the question then things can get confusing.
Each case is different and no two circumstances are the same but the notes above should serve you well when giving information for an adverse credit mortgage application. There will obviously be other things needed such as identification, proof of residence etc but they are standard no matter what type of mortgage you go for.
If you need help in applying for your mortgage and you have a poor credit history please feel free to contact us today.
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