What are bad credit mortgages?

Bad credit mortgages are, as their name suggests, mortgages which are given to people with a

bad credit rating or a poor credit history. If you’ve been declined a mortgage or loan by your high street bank because of your credit history, there’s no need to panic.

There are many mortgage lenders on the market which specialise in bad credit mortgages – also known as ‘adverse’ mortgages – so even if you’ve been turned down because you don’t have a clean credit file, there are still plenty of options open to you.

Why do I need bad credit mortgages?

Not everyone looking for a mortgage has an unblemished credit record. In fact, you probably won’t be surprised to hear that a significant number of mortgage applicants have a credit score that’s less than perfect.

There are many reasons for this. Missed or late mortgage, loan or credit card payments, bankruptcy or IVAs, CCJs, defaults and repossessions can all have a negative impact on your credit score. So can having no credit history, carrying a high amount of unpaid debt, being subject to a Debt Relief Order, or not being on the electoral register.

On the other side of the coin, keeping a clean credit file for a certain period, paying your bills on time or keeping your credit utilisation low can help to improve your credit score.

Lenders take all these factors into account when deciding whether to approve a mortgage.

However, while some lenders (most notably those on the High Street) generally tend to be more cautious and risk-averse and won’t accept applications from people with too much bad credit, certain lenders are more open to lending to people with credit issues. Some even have products specific to the bad credit mortgages marketplace.

How can I get bad credit mortgages?

If you’ve been declined a mortgage by a high street lender because of your credit score, you’re in the right place. James Alexander Financial Services will help you finding a specialist lender and the mortgage that’s right for you.

So, if you have bad credit, get in touch today.

Note: Your home may be repossessed if you do not keep up repayments on your mortgage.