Bad credit mortgage - 10 Top Tips
If you are wanting to apply for a bad credit mortgage there are a number of things you can do to help ensure you secure your new mortgage or remortgage as quickly and efficiently as possible. We have done the research for you, listed below is what we believe to be the top 10 hints and tips to help you get a quick decision and fast completion for bad credit mortgage applications.
1. Have as much documentation ready as possible when applying for a bad credit mortgage
When applying for any mortgage its important to have the correct documentation to hand to help speed the application through. Having as much information to hand as possible will help get a fast decision and quick completion - this is even more so with applications for bad credit mortgages due to the additional requirements which must be met due to the bad credit listed on your credit file.
2. Have a list of your creditors and debt situation to hand
Knowing how much you owe, who your creditors are and if the accounts have had defaults or CCJ's registered against them will help your broker speed things up. If you are on a debt a management plan then you should also have your debt management statement to hand.
3. Get your last 12 months mortgage or rent statement
If you have missed payments or late payments on your existing mortgage or rental agreement than a 12 month mortgage statement will allow your broker to see exactly what's been missed and help them to arrange the best deal for you.
4. Speak to a professional broker
An adverse mortgage broker will typically get you a better deal than a normal broker who doesn't specialise in bad credit mortgage applications. They will be more familiar with the lenders and the products they offer as well as any special deals available at the time of your application.
5. Be honest with you mortgage broker
You may be thinking this one is obvious but many people either don't want to disclose everything or feel embarrassed to explain their financial situation or debts (or how the adverse credit came about). This is another reason to use a specialist broker as they will be more familiar with your situation and will be more able to put your case across to the lender in a professional way. With all the checks done by mortgage lenders it is more than likely anything you do not disclose to your broker will be brought up by the lender some time during the application process and if your broker doesn't know about it your broker can not help you fix it. Being open with your broker from the outset will save time during the application process.
Mortgage Top 10 Guide Part 2 >>
