Bad Credit Mortgages

Taking out a Mortgage can be difficult for people who have poor credit history. If you’re dealing with credit issues or haven’t yet built a strong credit profile, you might face hurdles in obtaining a mortgage, particularly with high-street lenders. AT UK Property Finance we have a panel of lenders who specialise in providing mortgages for those struggling to get a mortgage on the high street.

Who we help:

  • Individuals with CCJ, bankruptcies, IVAs or missed payments
  • Self-employed individuals with just one years financial records
  • First time buyers
  • Properties across England, Wales, Scotland & Northern Ireland, both freehold and leasehold.

Our benefits

  • Access to lenders not available to the public
  • Free valuation fees
  • Loans up to 95% Loan-to-Value (LTV)
  • Interest only options available
  • Preliminary Soft credit checks

Purchasing a Property with Poor Credit

It is generally assumed that if your credit score is not perfect, getting a mortgage is out of the question. In reality, this is not necessarily the case.

Irrespective of how damaged (or underdeveloped) your credit record may be, there are options to explore beyond conventional High Street mortgages. The key to success lies in targeting the right lenders with your applications, with the help of an experienced broker.

Bad Credit Mortgage Options

These days it is perfectly possible to secure a subprime mortgage, aka a ‘bad credit mortgage’. These specialist type mortgages enable borrowers with a bad credit history to access the loans they need to purchase homes. When a person has a bad credit history they are considered a ‘higher-risk’ applicant in the eyes of lenders resulting in stricter terms and higher interest rates.

Bad Credit Mortgages: The Basics

Traditionally, bad credit mortgages have always attached higher rates of interest and elevated overall borrowing costs. This is to offset the assumed ‘higher risk’ of lending to a poor-credit applicant.

This does not necessarily mean that accessing an extremely competitive and affordable mortgage deal with poor credit is impossible. Working with a specialist ‘subprime’ mortgage provider, your requirements and overall financial position will be taken into account – not just your credit history.

If it is clear you can easily meet your long-term repayment obligations, you may qualify for a deal as competitive as any traditional High Street mortgage.

Bad Credit Mortgage Borrowing Costs

Subprime mortgages typically have higher interest rates and elevated overall borrowing costs. There may be higher fees payable to get the deal up and running in the first instance due to the way the lender will seek to mitigate any potential risk due to the imperfect track record. All of which may sound negative but nonetheless adds up to an open and accessible option for poor credit applicants in need of a mortgage.

Subprime mortgages are riskier for both the buyer and the lender. It’s understandable that certain precautions will be put in place to protect the lender in case things go wrong along the way. Most people who seek bad credit mortgages understand that exceptional deals and market-leading rates are out of the question. The best rates on the market are almost always reserved for borrowers with strong credit scores.

Subprime Mortgage Lenders

When dealing with bad credit mortgage providers it is still important to ensure you get the best deal. You could find yourself in a good position if you can get an interest-only loan allowing you to repay only the interest charged on the loan for several years, without paying the principal loan amount. An interest only mortgage can be a good option for poor-credit applicants who may be unable to qualify for other types of mortgages.

Bad Credit Mortgage Brokers

With so many options to explore it’s important to seek the advice of an independent mortgage broker. Bad credit mortgage lenders typically operate away from the UK High street which can make it difficult to track down a good deal without expert support. Discuss your requirements and your credit history with an experienced broker such as UK Property Finance. Our simple 6 step process is outlined below.

Adverse Credit Mortgage Inquiry Process

1) Contact Us

Reach out by calling us at 0116 4645534 or schedule a callback at your convenience below. Allow 5-10 minutes for this call.

2) Personal and Mortgage Details

We’ll start by collecting some basic information about you, your current financial situation, and your potential mortgage needs. This helps us understand what you’re looking for.

3) Credit Assessment

We’ll discuss your credit history. If you’re unsure about your credit status, we can perform a soft credit check. This doesn’t affect your credit score but gives us a clearer picture to work with.

4) Matching with Specialist Lenders

Using our extensive network of lenders, we’ll find and present you with mortgage options specifically tailored for those with adverse credit. We aim to offer you the best possible terms.

5) Provisional Mortgage Offer

Based on the details you provide, we’ll give you an indicative mortgage offer. This isn’t a formal approval but gives you an idea of what you might qualify for, helping you plan your next steps.

6) Decision in Principle

After your initial consultation, if you’re happy with the indicative terms within 24 hours, we can provide you with a Decision in Principle.

Ready to get started? 

If you’re thinking about a mortgage but worried about a poor credit history, book a call with one of our advisors below and we will be happy to help.