4 Expert Tips For Getting a Mortgage With Bad Credit

Written by Posted On Monday, 04 March 2019 02:55

Getting a Mortgage prior to 2008 was a relatively straight forward process then the credit crunch hit.


The reason for the Credit Crunch was that providers had given mortgages to people who really could not afford them, this in turn lead to toxic debt for lenders and in some cases brought them down (think Northern Rock) or ended up with Billions of pounds of public money being invested by the Government into banks (Think Royal Bank of Scotland).


Subsequently tougher restrictions were put on lenders in who they give mortgages to in order to prevent a reoccurrence of the Credit Crunch.  This resulted in mortgages being out of reach for many people especially if you had a bad Credit History.


In this article we will have a look at 4 ways to get a mortgage even if you have bad credit.

Improve your Credit Rating


A couple of simple steps could be all you need to get your Credit Rating raised to allow you to get a mortgage:

  • Check to see if you are on the electoral roll, if you are not then visit your local electoral registration office.

  • Make sure that you pay all your bills, and you do so in full.

  • If you have any credit accounts that you don’t use, close them.

  • Apply for a credit builder credit card and use it but make sure you pay off the full amount each month!

  • Improve your credit score with a guarantor loan, again make sure that the repayment program is something you can afford.

  • Setup a credit report and regularly review.  Look out for errors, if you spot one then contact the lender and get them to correct it.


Specialist Provider

Whilst the mainstream providers may provide you with a quote these will come with sky high rates, there are however some specialist providers for those with a poor credit rating.  

These lenders make a judgement based on several items:

  • Severity of the adverse credit

  • Length of time that the credit has been on your record

  • Other suitability and financial requirements


If you want some specialist advice when it comes to getting a mortgage then head over to Plus Financial Solutions, bad credit mortgage experts.


Big Deposit

Paying a bigger deposit means that you need less of a mortgage.  To a provider, the smaller the mortgage is then the lower the risk.  Maximise the amount you save by opening an ISA. This is a savings account that protects your money from the taxman.  Instead of handing over 50% of the interest that you gain, you get to keep the whole lot. Thus, helping you to increase the amount you can put down as a deposit.


You can only deposit £5,760 a year into a cash ISA, the next option if you intend to save more than this in a year is a regular savings account. These are accounts that will pay higher interest rates but will have various restrictions i.e. minimum pay in amount or limited withdrawals.  Keep an eye on interest rates to make sure you are getting the best return on your money.


Don’t use the stock market to increase your deposit, shares are better for long term investments as the ups and downs smooth themselves out over a time period.  You don’t want to be set to sell your shares to get your deposit only for the market to crash that day!


Get yourself into a savings habit.  Set up a regular payment to come off shortly after you have been paid.  This way you don’t notice the money going and helps with budgeting your month out.



If you have a questionable financial history give it some time before applying for a mortgage.  Use this time to save a deposit and build up your credit rating. The passing of time also lessons the impact of some issues that may have occurred.  


Don’t try to rush your application by telling any lies.  Lenders carry out strict checks now and are likely to find you out which in turn could result in your application being turned down.


Having bad credit record does make it harder to get a mortgage but no impossible.  Following the tips in the blog then you can be sure to be on the right pathway to finally owing your own home.

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James Stevenson

Hi, My name is James and I've been involved in the property and real estate industry for 10 years now. I hope people will like to read about my thoughts and experiences in the industry and please contact me if you want to discuss my articles further!

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