When looking to get a mortgage you will be aware of some of the criteria that you will need to meet before you can get a mortgage agreed. In all cases your credit history will be looked at. Also includes having the deposit a minimum of 5% with most lenders and the employment history to allow the borrowing.
In the last two years the financial conduct authority has changed how they regulate the mortgage market. Giving more stringent rules to lenders and brokers alike these rules were deemed to make the checks of affordability and sustainability tighter to avoid repossession and potential financial problems for clients in the future.
When applying for a mortgage you will need to pass the lenders credit score criteria. This can be an issue if you suffer with poor credit based on historical mistakes. So what to do if your credit score is far from squeaky clean? It is key to get expert mortgage advice in this scenario as many obstacles can be overcome if you are using a professional mortgage broker who understand various lenders criteria.
What is meant by understanding lenders criteria?
Just like getting car finance when you have poor credit a Mortgage broker has access to many lenders. This means that if they truly understand the criteria set by the lenders on their panel, they will know which lenders will accept you as a client on their personal circumstances.
What are the implication of obtaining a mortgage with bad credit?
If you are applying for a mortgage and you do have bad or poor credit you may experience higher interest rates or the requirement of a higher deposit. But saying this in many cases many people’s perception of their credit history is a lot different to the reality behind it.
The key to a successful mortgage application could be the small difference between expert advice and not receiving it. If you are looking for a mortgage broker in Southampton we have partnered up with the local experts for poor credit mortgages. We have partnered with this team after the great client feedback hopefully if this blog posts reads familiar to you they will be able to help you.