Many would say that unsecured credit happens all too often and it’s not an uncommon occurrence for clients to approach us for Specialist Mortgage Advice in Birmingham when they have a missed payments or have a lower credit score than is acceptable.
Once you have missed one of your monthly mortgage repayments, or something considered rather small, such as a missed payment to a mobile phone provider, you may end up with a default attached to your credit report. This has quite a bad effect on your future ability to obtain a mortgage, as it will be a strong indication that you represent a higher risk to the lender.
That being said, having missed monthly payments or any amount of defaults will not necessarily mean you can’t get a mortgage, but you may be in need of specialist help. The reason for this, is that it is fairly likely you will be turned down for a mortgage by a High Street Bank who may be risk-averse, especially if you only have a smaller deposit the property you’re looking to move to.
Specialist Lenders will want to know the date the default was registered against you and the further away you are from that specific date, the more likely it is that we’ll be able to provide some form of help. This is particularly the case if it was down to a lifetime event such as separation, ill health or an untimely redundancy. People do make mistakes when they are young and it can feel that these financial mistakes come back to cause trouble down the line.
We may also be able to provide assistance if you have had historic mortgage arrears or a County Court Judgement.
Below we have compiled some helpful answers to frequently asked questions regarding Bad Credit mortgages in Birmingham & nearby locations.
No matter the type of credit problem you have had in the past we are going to need to see an up-to-date copy of your credit report, something which can usually be obtained online completely free of charge.
It’s important that you obtain your credit report before you decide to apply for a mortgage, especially if you have been having any doubts about your credit history. The reasoning for this, is that undertaking multiple unnecessary credit searches can further damage your credit rating.
The answer to this depends entirely on your personal circumstances. Some customers may be a little perplexed when it comes to the impact of their credit. It may look bad, they may have had something flag up and cause problems, but they have a sufficient income & enough deposit to reduce a rate and get a favourable mortgage. So why won’t the lender allow them to borrow a specific amount for a property, or anything at all for that matter? What it all ultimately boils down to, is risk.
The lender needs to have the utmost confidence that you are able to pay back your mortgage payments without a likelihood of any form of arrears occuring. If arrears end up unfortunately happening, the lender may need to repossess your home, which is something they definitely would prefer to avoid. Though it might sound rather difficult, there are still plenty of routes to take for people looking to get a mortgage with bad credit, even if those routes may incur slightly higher rates. Getting in touch with a dedicated Specialist mortgage advisor in Birmingham will be a the most appropriate next step to you finding your way towards a potential mortgage.
Sometimes, for reasons you may not exactly have control over, you may find yourself in financially struggling and unable to keep up the mortgage payments you previously had no trouble paying. These circumstances are really not an ideal place to find yourself in. Whilst it could be a momentary lapse for a month, one that you are able to pay back in no time, the damage is done and your record will show it as a missed payment.
There may be other credit issues too that you’ve been subject to during this time period, and when it comes to getting a Remortgage at the end of your term, or a new mortgage after Moving Home in Birmingham, you may find yourself in a spot of bother. As mentioned earlier on in this article, this will always end up coming back to the risk. Can the lender trust you to not find yourself in this situation again?
Luckily, as loyal providers of Specialist Mortgage Advice in Birmingham, we have had lots of experience in helping customers who have find themselves with bad credit, especially when they’ve previously had or currently have a mortgage. If this sounds like your situation, then speaking with a trusted mortgage broker in Birmingham will be crucial to finding success in your home owning future.
Customers may find themselves with all kinds of different adverse problems when it comes to their credit, all of which can have a negative effect the mortgage process. These issues vary from, but are not limited to;
Whilst these are all unfortunate and oftentimes disheartening situations to find yourself in, it’s not the end of the road. The process may take longer, there may be more hurdles on your path and you may end up on a higher rate, but there are specialist lenders out there, some of which we have on panel, who will accept you depending on what your circumstances are.
To increase your chances of success and open yourself up to better rates, we highly recommend that you take a look at improving your credit score. We have a helpful, in-depth mortgage guide that we’ve written on How to Improve Your Credit Score, which will hopefully put you in a better place for obtaining a mortgage at some point down the line.
If you are in need of some expert mortgage advice in Birmingham regarding a Bad or Adverse Credit situation, then Get in Touch with our affable and reliable team of experienced mortgage advisors here at Birminghammoneyman. We’ll use the knowledge we’ve gathered over our twenty plus years of service to our advantage, working incredibly hard to try and ensure we have a clear and concise plan of action for your credit score and hopefully, if all goes right, a favourable mortgage outcome for you at the end.
Date Last Edited - 15/03/2021