Bad Credit Mortgage Advice in Leicester
It is a common practice nowadays to seek specialist mortgage advice in Leicester when clients have bad credit or not paying off their bills on time.
Something as small as a missed or late payment from your bills may result in a default attached to your credit report. Which may harm your capability to obtain a mortgage because it implies that you cannot keep up with repayments on time.
But that doesn’t mean it’s impossible, having any missed payments or defaults in your credit file may require some additional help from a Mortgage Broker in Leicester like ourselves. This is because most High Street Banks will reject your application for a mortgage, especially if you only have a small deposit.
Your lender will need to know the date the default was registered against you and how long ago it was. The more details are given, the more likely it is that the lender will be able to help you. Especially if it was down to a life-related event such as ill-health, redundancy or separation.
We tend to find that clients often make mistakes in the past, and these financial mistakes can come back to haunt them. We may also be able to help you if you have had historic mortgage arrears or a CCJ (County Court Judgement).
Bad Credit Mortgage FAQs
Below are some helpful responses to frequently asked questions about Bad Credit mortgages in Leicester and nearby areas. If you can’t find what you need in our bad credit FAQs, one of our Mortgage Advisors in Leicester will be more than happy to get back to you.
What will my mortgage advisor in Leicester need to see?
Your advisor will need to see an up-to-date copy of your credit report and show any previous credit problems you had in the past. You can find a copy of your recent credit report online for free.
Before applying for any mortgage, doing multiple credit searches can damage your credit rating. However, it’s still vital that you obtain an up-to-date copy of your credit report.
I have a good income but bad credit. Can I still get a mortgage?
This all comes down to your circumstances and affordability. Some customers find themselves a little perplexed by their credit reports. It might look bad, they may have had issues, but they have a stable income and enough deposit to reduce a rate and obtain a decent mortgage deal. It makes you wonder if you are in that same position but the lender still won’t let you borrow the amount you’ll like or need. That’s because it all comes down to risk.
After all, your lender needs to be convinced that you afford all your repayments on time without a likelihood of any arrears occurring. In the event of these arrears, the lender may need to repossess the home, which is something that everybody wants to avoid.
There may be a chance for those who are looking to get a mortgage while having bad credit, you just may have to pay higher rates. For more information, it’s best to speak to a Specialist Mortgage Advisor in Leicester, with their help they can hopefully find you a potential mortgage.
I’ve had mortgage problems before. Will that stop me from getting a mortgage?
One day you may find yourself in financial trouble and no longer able to keep up with the mortgage payments. These circumstances are unfortunate, and whilst it could be a short blip that you can pay back not too long after, the damage is done, and it will be on your credit report as a missed payment.
You may be faced with other credit issues too, and when it comes to getting a Remortgage or a new mortgage after moving home in Leicester, you may find yourself struggling to obtain a new mortgage. As previously stated, this always comes down to risk. Can the lender trust you? Will you be in the same position again?
The good news is, with the help of Specialist Mortgage Advice in Leicester, we have had helped previous customers who have had a mortgage and have since ended up with Bad Credit. If you are in a similar situation, speak to a Mortgage Broker in Leicester like ourselves, we may be able to help you achieve your mortgage goals.
What other types of adverse problems are customers faced with?
Customers may find themselves in a position to have adverse issues regarding their credit, all of which can impact your affordability for a mortgage. These issues vary from, but are not limited to;
- Bankruptcy
- Credit Card or Loan Defaults
- Missed Mortgage Payments
- County Court Judgements (CCJ’s)
Whilst this is an awful situation to be in, it’s not the end of the world. Your mortgage process may be longer, more challenging, and you may end up on a higher rate, but there are lenders out there, who might have a mortgage deal on their panel, who will accept your mortgage application.
To boost your chances of success and open yourself up to better rates, you need to focus on improving your credit score. We have a handy guide on different ways to improve your credit score, which will hopefully put you in a much better place for obtaining a mortgage in the future.
Get in Touch for Bad Credit Mortgage Advice
If you require any Mortgage Advice in Leicester regarding a Bad or Adverse Credit situation. Don’t hesitate to get in touch with a member of our team. Utilising their knowledge working in the industry, working extra hard to try and put you in the best possible position to eventually obtain you a mortgage.
Date Last Edited: December 6, 2023
