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Can you get a mortgage with bad credit?

If you have a bad credit history, it may be more likely that you will be refused a mortgage, especially with the main high street lenders. Although it is still possible to obtain a mortgage from a specialist broker, you will be charged a higher rate of interest.

Lenders always carry out a credit check before approving a mortgage. Some black marks on your record may have a higher impact than others. It will depend largely on the amount of money involved, and how long ago it was.

A missed mortgage payment is probably the worst type of default you can have on your record, as most lenders are likely to refuse to approve a mortgage application. Although other missed payments will still be a red flag to a lender, they may not be as serious. For instance, just one missed payment for a small amount and more than two years ago, may not result in a rejection. Try to make sure that you don’t miss any payments for at least two years, so that the lender can see that you are managing payments more carefully.

Any county court judgements (CCJs) will be judged by the amount involved and how long ago it was. Bankruptcy may be a different problem, as many high street lenders are unlikely to offer you a mortgage.

Speak to a mortgage advisor if you have problems with credit, as they learn about different lenders and the likelihood of approving a mortgage when they study on a CeMAP course.

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