Can You Get A Mortgage If You Have Bad Credit?
Can you get a mortgage if you have a bad credit score?
A lot of people worry that if they have a bad credit score, they are not able to get a mortgage because lenders will always check the credit score before lending to see whether their client is good at money management, and will be able to pay them back on their long term loan. They’ll also need to see your income, monthly outgoings and savings so that they can see what spend and how much they earn.
To be honest with you, yes it is possible to get a mortgage with a bad credit score, however it is always best to show yourself in the best light. There are ways which you can replenish your reputation, and that is by:
Show the lender that you are a responsible borrower by managing your finances correctly so that all your payments are made on time.
If you have an explanation for any past financial difficulties then make sure to add that in, e.g. poor health or losing employment.
Review your credit report regularly. You don’t want to submit a report to your lender that doesn’t have all the correct or up to date information on it. This will also leave a bad impression. If you end up doing this, then ask the lender for an amendment.
Bad credit mortgage are slightly different to good credit mortgage, with this meaning that higher interest rates have to be paid due to the uncertainty on getting paid back. It also may mean that you are required to pay a higher down payment of about 20-25% of the property’s value, rather than only 5-10%.
I think this shows you how important it really can be to have a good credit score, however if you are stuck with a bad credit score, then it also shows that it is still possible to be a homeowner, however it means that you may have to pay a lot more to actually purchase the property.
If you would like more information then make sure to call us up at 01293 278312