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Can You Still Qualify for a Mortgage with a Poor Credit History?

Katie King

Struggling with poor credit and wondering if you can still get a mortgage? The good news is that it’s possible, but it requires careful planning and a clear understanding of your options. This guide will walk you through what credit history is, why it’s important, and the steps you can take to secure a mortgage with less-than-perfect credit.


What Is Credit History and Why Is It Important for Mortgages?

Your credit history is a record of how you’ve borrowed and repaid money in the past. It includes details about credit cards, loans, and other financial obligations. Lenders use your credit history to assess your reliability as a borrower and determine:

  • Whether to approve your mortgage application.

  • The interest rate you’ll receive.


A good credit history reassures lenders that you’re likely to make repayments on time. On the other hand, a poor credit history may result in:

  • Rejection of your application.

  • Higher interest rates, which increase the cost of borrowing.


Steps to Improve Your Credit History

Improving your credit history takes time, but the effort can pay off with better mortgage terms. Here are actionable steps you can take:

  1. Make Payments on Time: Always pay your bills and debts on time and in full. Payment history is a significant factor in your credit score.

  2. Reduce Your Debt: Lowering outstanding balances on credit cards and loans can improve your credit utilisation ratio.

  3. Limit New Credit Applications: Avoid opening multiple new credit accounts, as each hard inquiry can temporarily lower your credit score.

  4. Fix Errors on Your Credit Report: Obtain free credit reports from major credit bureaus and dispute any inaccuracies that could be dragging down your score.

  5. Register to Vote: Being on the electoral roll can help lenders verify your identity and address, making you a more attractive borrower.


Mortgage Options for People with Poor Credit in the UK

If you have a poor credit history, you still have options. These include:

  1. Guarantor Mortgages:

    • A guarantor (such as a family member) agrees to cover your payments if you fail to pay.

    • These mortgages often come with higher interest rates.

  2. Bad Credit Mortgages:

    • Specifically designed for borrowers with poor credit.

    • They usually have higher interest rates and fees compared to standard mortgages.

  3. Government Schemes:

    • Schemes like Help to Buy or Shared Ownership can make it easier to secure a home.

    • These programs may have lower deposit requirements or more lenient credit checks.


Tips for Getting a Mortgage with Poor Credit

Boost your chances of approval with these tips:

  1. Get Pre-Approved: Pre-approval demonstrates to sellers and estate agents that you’re serious and financially prepared to buy a home.

  2. Shop Around for Lenders: Different lenders have varying criteria. Some specialise in working with individuals who have poor credit histories.

  3. Save a Larger Deposit: The more you can contribute upfront, the less risky you’ll appear to lenders, potentially securing better terms.

  4. Work with a Specialist Broker: A mortgage broker with expertise in bad credit cases can help match you with lenders that align with your circumstances.


Be Honest and Transparent

When speaking with lenders or brokers, be upfront about your financial situation. If there are negative marks on your credit report, explain the reasons behind them and highlight the steps you’ve taken to improve.


While getting a mortgage with poor credit can be challenging, it’s certainly not impossible. By improving your credit profile, exploring alternative mortgage options, and working with the right lender or broker, you can move closer to securing a mortgage at competitive terms.


How The Mortgage Social Can Help

At The Mortgage Social, we specialise in guiding individuals with poor credit through the mortgage process. Our team of expert brokers understands the challenges and has the experience to help you find a solution tailored to your situation.


Contact us today for personalised advice and let us help you turn your dream of homeownership into a reality!


🏡 Your home may be repossessed if you do not keep up repayments on your mortgage 🏡


🏡 You may have to pay an early repayment charge to your existing lender if you remortgage 🏡


🏠 Your property may be repossessed if you do not keep up repayments on your mortgage 🏠


☔️ As with all insurance policies, conditions and exclusions may apply ☔️


☔️ The cost of this insurance depends on several factors, such as your age, where you live & your occupation. As a result, the cost you will pay is based on your own circumstances ☔️


💷Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage💷


🏠Not all Buy to Let Mortgages are regulated by The Financial Conduct Authority🏠


The Mortgage Social is a trading style of Bubble Finance Hub Limited 🫧

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