Bad Credit Mortgage Advice

  • Missed or late payments
  • Debt management plan
  • Discharged bankruptcy
  • Defaults, CCJs or IVAs

Bad Credit Mortgage Advice

  • Missed or late payments
  • Debt management plan
  • Discharged bankruptcy
  • Defaults, CCJs or IVAs
Author's Avatar
Author: Carl Shave - CEO and co-founder
Last updated: July 8th, 2022

Finding yourself in the position of needing advice when applying for a mortgage with bad credit is probably not something that you had planned for. However, it may put your mind at rest to know that if you do find yourself in this position, you are certainly not alone and join the great number of people who regularly contact us for exactly this service.

Almost all search engines and best-buy mortgage tables cater to those who fit the standard mould when it comes to applications, and tend to be far less relevant to people needing specialist advice in applying for a home loan. You can spend a huge amount of time and energy trying to research all the options available to you by yourself – experience a great deal of frustration when it seems that nobody will be able or willing to provide a loan that meets your needs – and still not discover the products and rates offered by more specialist lenders who take a more flexible approach to borrowers with bad credit.

Speaking to an adviser who is an expert in the bad credit mortgage sector should be of invaluable assistance in securing the right mortgage to meet your needs. They will be able to assess your situation, use their knowledge of the range of lenders available (and their varying criteria), as well as the prevailing trends in the market plus any new offers that have recently become available, to find the most appropriate scheme for your individual circumstances.

In many cases, the most suitable deal may even be at a rate offered by a standard high street mortgage provider from the outset, but where this is not possible and only a more specialist rate is on offer, a specialist adviser can work on a plan to get you in a more favourable position later in your mortgage lifetime, possibly through switching your mortgage once your adverse credit items have slipped off your credit record.

Speak to an expert

How do I get mortgage advice with a bad credit history?

Advice seems to be available wherever you choose to look however, not all is good advice nor sadly indeed correct.  One option to getting advice is to seek this from each individual lender yourself by looking on their website and speaking to them each separately however, with all lenders having their own individual fairly rigid criteria that sets out their rules for who they will or will not consider for a mortgage, this can be extremely time consuming.  It could also start to be detrimental to your chances of success if each carries out a credit check that gets registered on your credit file.  The other option is to employ the services of a mortgage adviser who can source the different lenders on your behalf.  Even better perhaps is that the mortgage broker you look to use is a specialist in the bad credit sector.  This way you can be sure that they have the specific knowledge to advise you of everything you need to know.

 

There are pros and cons for each route.  We’ve highlighted some of these below:

Own advice:

Pros

Potentially lower fees

Direct contact with the lender

Gives you complete control

 

Cons

Can be much more time consuming

May end up costing more

Possibly not obtain the most appropriate mortgage

 

Using a mortgage broker:

Pros

Should save you a lot of time

Expert knowledge in one place

Impartial advice with many lenders available

Best advice resulting in confidence of arranging the most suited mortgage

 

Cons

Could be additional fees to pay

May still not have access to all lenders

Getting advice from a broker for your bad credit mortgage should be free of charge.  It is when you choose to start using the mortgage broker to assist with the arrangements that there is likely to be a fee payable for their services.  However, what you will find with many of these brokers is that a fee will only be payable should they be able to find you a mortgage lender and that you ask them to proceed.  It is also usual that you will just pay part of their fee at the time of applying with the remainder only payable if you successfully receive a formal mortgage offer.  A mortgage offer is only issued once the lender has carried out all their checks including the assessment of any documents requested, such as proof of income and bank statements plus a satisfactory survey of the property where deemed necessary.

At Just Mortgage Brokers this is the approach we take whereby we appreciate the advice needs to come first and as such there is no fee for the advice on getting a mortgage with bad credit.  Any costs that are incurred for our services will only be payable once you agree to proceed with our recommendations.

Do note that some fees charged by brokers may not be refundable so do check this prior to paying any that are due at the outset.

Knowing that you have been given the best advice is critical when arranging a mortgage and is arguably even more important when it involves bad credit.  All advisers regulated by the Financial Conduct Authority (FCA) are required to give best advice at all times.  So, although you should be safe in the knowledge that you have been given best advice, a broker can only arrange a mortgage with a lender that they have available to them.  As such they are only able to advise you on those lender’s products.  Not all brokers are able to access every lender available to intermediaries so please ensure you check this is the case if this is what you require.  Having complete access is defined as being unlimited or being known as an Unlimited Broker, such as here at Just Mortgage Brokers. Other terms meaning fairly much the same thing, still recognised in the public eye but not formally used in the industry are Independent or Whole of Market.

Just Mortgage Brokers logo

Useful Links

About

Website by Focus.