Deal Direct - bad credit mortgage guide.

If you have poor credit, and you’re trying to buy a new house or remortgage, it can be a challenge to find a lender willing to consider your application.

Bad credit is generally an indication of a poor credit score, which is a record of your financial health and how you have dealt with credit in the past. Mortgage lenders will check your credit file when assessing your application, and if your record is poor it will affect what you can borrow.

Lenders use various credit reference agencies such as Equifax, Callcredit and Experian, and each has its own way of scoring.

Having poor credit doesn’t necessarily mean you won’t get a mortgage, however it means your choices will limited. If you want to discuss your bad credit mortgage options, contact us at Deal Direct on 0800 048 8828.

We can search for poor credit mortgages from a range of lenders, if in the last 6 years you haven’t:

• had your home repossessed
• had any defaults, late payments or CCJs on your mortgage
• had an IVA unless it was discharged over 3 years ago
• declared bankrupt unless it was discharged over 3 years ago

and in the last 3 years you haven’t:

had any defaults or CCJs on an unsecured loan -unless less than £500 and they have been settled

Improving your credit score

If you’re struggling to get a mortgage due to a poor credit score, there are some things you can do to improve your rating.

• Stop applying for credit
• Pay off your debts
• Make sure you’re on the electoral roll
• Review your accounts
• Use credit wisely
• Be consistent with your personal details
• Check your own credit score – you can do this for free with Equifax, Experian, or Callcredit. If you spot a mistake you should apply to have it removed.

If you would like to discuss your poor credit mortgage options in more detail contact us at deal Direct.

Speak to a Deal Direct advisor on 0800 048 8828.