Why Obtain a Mortgage with Bad Credit?

Getting a mortgage can be troublesome, especially when you have prominent defaults or missed credit card payments. Bankruptcy and individual voluntary arrangements can also be a problem in getting a mortgage, but honestly, it’s not impossible. Consulting an impartial mortgage broker can help you get fruitful advice on your case tailored to your particular financial history.

You can go for North East mortgage refinancing as they help in money arrangements. Here is a quick view of things related to bad credit mortgages you must know!


Obtaining a mortgage with a bad credit status is most of the time possible but with limited options available.

Lenders will check your credit, and red flags on your credit history will be evaluated. Some lenders are more optimistic and may ignore some lags in your financial history depending on the amount of money or time you took to pay your debt.

Having a bad credit financial history will result in refusal of a mortgage straight from high-street banks. Building societies can provide you with money and are more flexible than banks. Building societies also consider life circumstances like health problems, divorce, or losing a job to see if financial lag resulted from a situation or your own carelessness.

Bad Credit Market Analysis

A macro analysis of residential mortgages for people with past credit issues revealed that at least a quarter of the property value is required as a deposit to qualify. Interest rates of the bad credit mortgage market are significantly higher than typical mortgage providers.

Getting It Done

There are several steps to obtain a mortgage with bad credit. Red flags on your credit history can be viewed less seriously after a particular time duration has passed. If you involve your partner with you while you apply for a mortgage, then both of your histories will be taken into account, and therefore chances will be brighter.

Repair your credit history by paying your payments in time and being responsible for your expenses. A stable source of income can help portray you as a lower-risk client. You can also offer a higher deposit while you aim at low-value properties.

When you meet your lender, be brutally honest about your credit history because they will conduct a financial background check, and any discrepancy will make you look unreliable. You need to have a logical explanation of lags in your financial history.

All in all, when you know how to mend your financial history, follow guidelines to receive a bad credit mortgage.